Definition & Meaning of Optional Form 90
Optional Form 90 (OF 90) is a United States Government document utilized by contracting officers to formally release a lien on real property that has been pledged as collateral for a government contract. This form is essential in situations where the surety has fulfilled their obligations, and the lien is no longer necessary. By completing OF 90, the government relinquishes its claim on the real estate, allowing the surety to regain control of their property.
The lien is typically placed to ensure that the surety meets the terms of the contract. When the contract is fulfilled, the lien's removal is documented through this form, signifying that the surety remains liable for the contract's performance, even without the lien in place.
How to Use the Optional Form 90
Using Optional Form 90 involves a straightforward process that ensures the lien on the property is officially released. The steps include:
- Determine Necessity: Assess whether the lien is still needed based on the surety's completion of contractual obligations.
- Complete the Form: Fill out the required sections of OF 90 accurately, including details about the property and the contract.
- Obtain Signatures: Ensure the contracting officer signs the form, which is necessary for its validity.
- Submit the Form: Send the completed OF 90 to the appropriate governmental authority to finalize the lien release.
These steps ensure that all parties involved understand the status of the lien and the obligations that remain.
How to Fill Out Optional Form 90
Filling out Optional Form 90 requires attention to detail to ensure accuracy. The key sections to complete include:
- Property Description: Provide a clear and concise description of the real property that is subject to the lien.
- Contract Details: Include information about the government contract, such as the contract number and the parties involved.
- Surety Information: List the surety's name and contact information for verification purposes.
- Signatures: The contracting officer must sign and date the form to validate the release of the lien.
Each section must be filled out completely to avoid delays in processing the form.
Key Elements of the Optional Form 90
Several critical elements define Optional Form 90 and its purpose:
- Government Claim Release: The primary function is to officially remove the government's claim on the property.
- Surety Liability: The form acknowledges that the surety remains responsible for fulfilling the contract's terms.
- Contracting Officer's Authority: Only an authorized contracting officer can execute the form, ensuring its legitimacy.
- Record Keeping: A copy of the signed form should be kept for record-keeping purposes by both the surety and the government.
Understanding these elements helps ensure compliance and proper handling of the form.
Who Typically Uses the Optional Form 90
Optional Form 90 is primarily used by specific stakeholders involved in government contracts:
- Contracting Officers: They are responsible for overseeing government contracts and ensuring compliance with regulations.
- Sureties: Companies or individuals who provide guarantees for the performance of contractors and may have liens placed on their properties.
- Government Agencies: Various agencies may require the use of OF 90 when managing contracts that involve property liens.
These users play vital roles in the contract management process, ensuring that obligations are met and that property rights are respected.
Examples of Using the Optional Form 90
Real-world scenarios illustrate the application of Optional Form 90:
- Construction Projects: A construction company completes a government project, and the lien on their property is released using OF 90.
- Service Contracts: A service provider fulfills their contract with a federal agency, leading to the completion of OF 90 to remove the lien.
- Financial Guarantees: A surety company ensures a contractor's performance, and once obligations are met, OF 90 is filed to release the lien on the collateral property.
These examples highlight the practical importance of the form in various contracting scenarios.
Legal Use of the Optional Form 90
The legal framework surrounding Optional Form 90 is essential for its proper use:
- Compliance with Regulations: The form must be used in accordance with federal contracting regulations to ensure its validity.
- Documentation of Liens: Proper documentation is required to establish and release liens legally, protecting the rights of all parties.
- Liability Considerations: The surety's continued liability for contract performance must be clearly stated in the form to avoid misunderstandings.
Understanding these legal aspects is crucial for all parties involved in government contracts.
Steps to Complete the Optional Form 90
Completing Optional Form 90 involves several clear steps:
- Step One: Review the contract to confirm that all obligations have been met by the surety.
- Step Two: Access the Optional Form 90, ensuring you have the correct version, such as the GSA Form 90 PDF.
- Step Three: Fill in the required fields, ensuring accuracy in property and contract details.
- Step Four: Have the contracting officer review and sign the form.
- Step Five: Submit the completed form to the relevant government agency.
Following these steps helps ensure a smooth process for releasing the lien.
Important Terms Related to Optional Form 90
Familiarity with key terms related to Optional Form 90 enhances understanding:
- Surety: A party that guarantees the performance of a contractor.
- Contracting Officer: An authorized individual responsible for managing government contracts.
- Collateral: Property pledged as security for the performance of a contract.
- Liability: The obligation of the surety to fulfill the contract terms.
Understanding these terms is vital for navigating the complexities of government contracts and the use of OF 90.
