Advance payments

§ 2307. Advance payments (a) Under terms agreed upon by the parties, the head of an agency may make advance payments in any amount on a negotiated contract, whether or not the contract previously provided for such payments, if— (1) the contractor gives adequate security; and (2) the head of the agency determines that advance payments are in the public interest or the interest of national defense and are necessary for the procurement of the property or services under the contract. The total amount of advance payments on any contract may not be more than the contract price. (b) The terms governing advance payments under subsection (a) may provide for a lien in favor of the United States on— (1) the property contracted for; (2) the credit balance in any special account in which the advance payments are deposited; and (3) such of the material and other property acquired for performance of the contract as may be agreed upon by the parties. Upon inclusion of such a provision, a lien is created that is paramount to any other lien.