2 CFR § 1108.265 - Obligation.

---
identifier: "/us/cfr/t2/s1108.265"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 1108.265 - Obligation."
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "1108.265"
section_name: "Obligation."
chapter_name: "DEPARTMENT OF DEFENSE"
subchapter_number: "A"
subchapter_name: "GENERAL MATTERS AND DEFINITIONS"
part_number: "1108"
part_name: "DEFINITIONS OF TERMS USED IN SUBCHAPTERS A THROUGH F OF THIS CHAPTER"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301 and 10 U.S.C. 113."
regulatory_source: "85 FR 51230, Aug. 19, 2020, unless otherwise noted."
cfr_part: "1108"
---


# 1108.265 Obligation.

*Obligation* means:

(a) When used in conjunction with a DoD Component's award, a legally binding agreement that will result in outlays, either immediately or in the future. Examples of actions through which a DoD Component incurs an obligation include the grants or agreements officer's signature of a grant, cooperative agreement, or technology investment agreement (or modification of such an award) authorizing the recipient to use funds under the award.

(b) When used in conjunction with a recipient's or subrecipient's use of funds under an award or subaward, an order placed for property and services, a contract or subaward made, or a similar transaction, during a given period that requires payment during the same or a future period.