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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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25 sections with “letter of credit”

  • FAR 28.204-3 Irrevocable letter of credit.
    …son required to furnish a bond has the option to furnish a bond secured by an irrevocable letter of credit (ILC) in an amount equal to the penal sum required to be secured (see 28.204). A separate ILC is required for each bond. (b) The ILC…
  • FAR 52.228-14 Irrevocable Letter of Credit.
    As prescribed in 28.204-4, insert the following clause: Irrevocable Letter of Credit (NOV 2014) (a) “Irrevocable letter of credit” (ILC), as used in this clause, means a written commitment by a federally insured financial institution to p…
  • FAR 32.406 Letters of credit.
    …nt of the Treasury (Treasury) prescribes regulations and instructions covering the use of letters of credit for advance payments under contracts. See Treasury Department Circular 1075 (31 CFR part 205), and the implementing instructions in …
  • FAR 2.101 Definitions.
    …ntracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by writt…
  • FAR 52.232-12 Advance Payments.
    …, ____ [Insert the name of the office designated under agency procedures], or (2) under a letter of credit. The amount of the invoice or voucher submitted plus all advance payments previously approved shall not exceed $___ If a letter of cr…
  • FAR 52.232-16 Progress Payments.
    …mall business concerns (see FAR 32.501-1). Alternate II (APR 2003). If the contract is a letter contract, add paragraphs (n) and (o). The amount specified in paragraph (o) shall not exceed 80 percent of the maximum liability of the Governm…
  • FAR 28.102-1 General.
    …owing payment protections, giving particular consideration to inclusion of an irrevocable letter of credit as one of the selected alternatives: (i) A payment bond. (ii) An irrevocable letter of credit (ILC). (iii) A tripartite escrow agr…
  • FAR 32.409-3 Security, supervision, and covenants.
    …the Government's interest. (f) The requirements of this 32.409-3 do not apply when using letters of credit if an agency's procedures provide for— (1) The use under a cost-reimbursement contract of Federal funds deposited in the contractor…
  • FAR 28.204-4 Contract clause.
    Insert the clause at 52.228-14, Irrevocable Letter of Credit, in solicitations and contracts for services, supplies, or construction, when a bid guarantee, or performance bonds, or performance and payment bonds are required.
  • FAR 32.202-4 Security for Government financing.
    … Other forms of security. Other acceptable forms of security include— (1) An irrevocable letter of credit from a federally insured financial institution; (2) A bond from a surety, acceptable in accordance with part 28 (note that the bond …
  • FAR 32.408 Application for advance payments.
    …cial account as depository for the advance payments. If advance payments in the form of a letter of credit are anticipated, the contractor shall identify the specific account at the financial institution to be used. This subparagraph (4) is…
  • FAR 52.228-1 Bid Guarantee.
    …able to the Government, postal money order, certified check, cashier's check, irrevocable letter of credit, or, under Treasury Department regulations, certain bonds or notes of the United States. The Contracting Officer will return bid guar…
  • FAR 52.228-2 Additional Bond Security.
    …bond becomes inadequate in the opinion of the Contracting Officer; or (d) An irrevocable letter of credit (ILC) used as security will expire before the end of the period of required security. If the Contractor does not furnish an acceptabl…
  • FAR 52.228-15 Performance and Payment Bonds—Construction.
    …ptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is publis…
  • FAR 52.228-16 Performance and Payment Bonds—Other Than Construction.
    …ptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is publis…
  • DFARS 252.232-7000 Advance payment pool.
    …the Contractor]”. The Agreement is incorporated in the contract by reference. (c) When a letter of credit has not been issued to the Contractor in conjunction with the contract, payment will be by a dual payee Treasury check made payable t…
  • DFARS 252.232-7012 Performance-Based Payments—Whole-Contract Basis.
    …tract, consistent with FAR 32.202-4: (A) A paramount lien on assets. (B) An irrevocable letter of credit from a federally insured financial institution. (C) A bond from a surety, acceptable in accordance with FAR part 28. (D) A guarante…
  • DFARS 252.232-7013 Performance-Based Payments—Deliverable-Item Basis.
    …tract, consistent with FAR 32.202-4: (A) A paramount lien on assets. (B) An irrevocable letter of credit from a federally insured financial institution. (C) A bond from a surety, acceptable in accordance with FAR part 28. (D) A guarante…
  • FAR 32.501-2 Unusual progress payments.
    …stances. (c) Progress payments will not be considered unusual merely because they are on letter contracts or the definitive contracts that supersede letter contracts.
  • FAR 49.606 Granting subcontract settlement authorization.
    …icers shall use the following format when granting subcontract settlement authorization: LETTER OF AUTHORIZATION (a) Your request of ______ (date) is approved, and you are authorized, subject to the limitations of subsection 49.108-4 and …
  • FAR 52.216-7 Allowable Cost and Payment.
    …nd other financial data (e.g., trial balance, compilation, review, etc.). (G) Management letter from outside CPAs concerning any internal control weaknesses. (H) Actions that have been and/or will be implemented to correct the weaknesses …
  • FAR 32.604 Demand for payment.
    … to the payment office identified in the contract or as otherwise specified in the demand letter in accordance with agency procedures. (6) Notification that the payment office may initiate procedures, in accordance with the applicable stat…
  • FAR 41.202 Procedures.
    …in 4.803, the following information: (1) The unsigned, tendered contract and any related letter of transmittal. (2) The reasons stated by the utility supplier for not executing the tendered contract, the record of negotiations, and a writ…
  • FAR 49.206-2 Bases for settlement proposals.
    …ontract does not specify unit prices. (iv) If the termination is complete and involves a letter contract. (2) When the total-cost basis is used under a complete termination, the contractor must itemize all costs incurred under the contrac…
  • DFARS 228.370-2 General.
    …licitly refused assumption of risk of loss. If the FMS customer has accepted the standard Letter of Offer and Acceptance Standard Terms and Conditions, as described in DoD 5105.38-M, Security Assistance Management Manual, they have assumed …

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.