32.301
Definitions
FAR 32.301 defines essential terms for understanding and complying with loan guarantee requirements for defense production contracts.
Overview
FAR 32.301 provides definitions for key terms used in Subpart 32.3, which governs loan guarantees for defense production. This section clarifies the meaning of terms such as "borrower," "Federal Reserve Board," "guaranteed loan" (or "V loan"), and "guaranteeing agency." Understanding these definitions is essential for contractors, subcontractors, and suppliers involved in obtaining or managing guaranteed loans under national defense production programs. The section ensures all parties have a common understanding of the terminology used throughout the subpart, which is critical for compliance and proper administration of loan guarantees.
Key Rules
- Definition of Borrower
- A borrower can be a contractor, subcontractor at any tier, or other supplier who receives a guaranteed loan.
- Definition of Guaranteed Loan (V Loan)
- A guaranteed loan is a financial arrangement under Regulation V, where a federal agency guarantees a portion of the loan to expedite national defense production.
- Definition of Guaranteeing Agency
- The guaranteeing agency is any agency authorized by the President to guarantee loans for defense production through Federal Reserve Banks.
- Definition of Federal Reserve Board
- Refers to the Board of Governors of the Federal Reserve System, which oversees Regulation V.
Responsibilities
- Contracting Officers: Must use these definitions when applying Subpart 32.3 and ensure all parties understand them.
- Contractors/Subcontractors/Suppliers: Should be aware of these definitions when seeking or managing guaranteed loans for defense production.
- Agencies: Must ensure proper use of terms in documentation and communications related to loan guarantees.
Practical Implications
- This section exists to eliminate ambiguity in the administration of defense production loan guarantees.
- Accurate understanding of these terms is crucial for compliance and for navigating the loan guarantee process.
- Misinterpretation of these definitions could lead to compliance issues or delays in obtaining guaranteed loans.