[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR314.3]

[Page 512]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 314--PROPERTY--Table of Contents
 
                          Subpart A--In General
 
Sec. 314.3  Use of property.

    (a) The recipient or owner must use any property acquired or 
improved in whole or in part with grant assistance only for the 
authorized purpose of the project and such property must not be leased, 
sold, disposed of or encumbered without the written authorization of 
EDA.
    (b) However, in the event that EDA and the recipient determine that 
property acquired or improved in whole or in part with grant assistance 
is no longer needed for the original grant purpose, it may be used in 
other Federal grant programs, or programs that have purposes consistent 
with those authorized for support by EDA, but only if EDA approves such 
use.
    (c) When the authorized purpose of the EDA grant is to develop real 
property to be leased or sold, as determined by EDA, such sale or lease 
is permitted provided it is for adequate consideration and the sale is 
consistent with the authorized purpose of the grant and with applicable 
EDA requirements concerning, but not limited to, nondiscrimination and 
environmental compliance. The term ``adequate consideration'' means 
consideration that is fair and reasonable under the circumstances of the 
sale or lease, and may include money, services, property exchanges, 
contractual commitments, or acts of forbearance.
    (d) When acquiring replacement personal property of equal or greater 
value, the recipient may, with EDA's approval, trade-in the property 
originally acquired or sell the original property and use the proceeds 
in the acquisition of the replacement property, provided that the 
replacement property shall be used for the project and be subject to the 
same requirements as the original property. In extraordinary and 
compelling circumstances, EDA may allow replacement of real property, 
with the approval of the Assistant Secretary.

[64 FR 5476, Feb. 3, 1999, as amended at 64 FR 69879, Dec. 14, 1999]