FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.8
FAR 32.802 Conditions.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section explains when a contractor can assign money due or to become due under a contract to a financing institution. It lists specific conditions that must be met, such as the contract amount, the type of assignee, and notice requirements. Contractors need to follow these rules to ensure an assignment is valid.
Applies to: Contractors who want to assign moneys due or to become due under a contract
What it requires
- Ensure the contract specifies payments aggregating $1,000 or more.
- Assign only to a bank, trust company, or other financing institution, including any Federal lending agency.
- Ensure the contract does not prohibit the assignment.
- Unless otherwise expressly permitted in the contract, ensure the assignment covers all unpaid amounts, is made to only one party (except as agent or trustee for multiple parties), and is not subject to further assignment.
Key terms: Assignment of Claims Act · assign · moneys due or to become due · financing institution · assignee
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a contract if all the following conditions are met:
(a) The contract specifies payments aggregating $1,000 or more.
(b) The assignment is made to a bank, trust company, or other financing institution, including any Federal lending agency.
(c) The contract does not prohibit the assignment.
(d) Unless otherwise expressly permitted in the contract, the assignment—
(1) Covers all unpaid amounts payable under the contract;
(2) Is made only to one party, except that any assignment may be made to one party as agent or trustee for two or more parties participating in the financing of the contract; and
(3) Is not subject to further assignment.
(e) The assignee sends a written notice of assignment together with a true copy of the assignment instrument to the—
(1) Contracting officer or the agency head;
(2) Surety on any bond applicable to the contract; and
(3) Disbursing officer designated in the contract to make payment.
← 32.801 Definitions. · 32.803 Policies. →
Rule changes for FAR Part 32
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-08-07 · effective 2025-08-07
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.