3208. SECURITY, SUPERVISION, AND COVENANTS

3208 SECURITY, SUPERVISION, AND COVENANTS 3208.1 If advance payments are approved, the contracting officer shall enter into an agreement with the contractor covering bank accounts and including suitable covenants, approved by the Director, protecting the interests of the District. 3208.2 In the agreement required under §3208.1, the contract officer shall provide for a paramount lien in favor of the District. This lien may supplement or replace other security requirements. 3208.3 The lien required under §3208.2 shall cover the following: (a) Goods being acquired; (b) Any credit balance in the special bank account in which advance payments are deposited; and (c) All property that the contractor acquires for performing the contract, except to the extent to which the District otherwise has valid title to the property. 3208.4 The contracting officer shall ensure that the amounts of advance payments do not exceed the contractor's financial needs, and shall closely supervise the contractor's withdrawal of funds from special bank accounts in which advance payments are deposited. SOURCE: Final Rulemaking published at 35 DCR 1629 (February 26, 1988).