[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR49]

[Page 915]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 49_TERMINATION OF CONTRACTS--Table of Contents
 
                     Subpart 49.1_General Principles
 
Sec.  49.109-2  Reservations.

    (a) The TCO shall--
    (1) Reserve in the settlement agreement any rights or demands of the 
parties that are excepted from the settlement;
    (2) Ensure that the wording of the reservation does not create any 
rights for the parties beyond those in existence before execution of the 
settlement agreement;
    (3) Mark each applicable settlement agreement with ``This settlement 
agreement contains a reservation'' and retain the contract file until 
the reservation is removed;
    (4) Ensure that sufficient funds are retained to cover complete 
settlement of the reserved items; and
    (5) At the appropriate time, prepare a separate settlement of 
reserved items and include it in a separate settlement agreement.
    (b) A recommended format for settlement of reservations appears in 
49.603-9.