Receivables and contract rights are the collateral in most defence financings. Without the right to assign them, or the authority's consent, the security is weaker.
Across the 3 regimes
United Kingdom
MOD standard terms prohibit assignment without the other party's prior written consent. Lenders usually rely on security over proceeds, or seek consent for larger contracts.
United States
Assignment of Claims Act (31 U.S.C. 3727, 41 U.S.C. 6305) and FAR 52.232-23: payments can be assigned once, to a financing institution or an agent for a syndicate.
EU and NATO
Set by national law and the contract. Consent of the contracting authority is the norm.
The rest of this page sets out the 3 quoted provisions behind these cells, what is usually negotiated, and what lenders and buyers ask. It is free with a work email, along with the full tools and guides.
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Related
- Tool: Defence finance clause library
- Guide: Government contract receivables as collateral
- Checklist: Defence procurement contract review checklist
- Checklist: Supplier flow-down and cyber checklist
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.