[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR12.14]



[Page 36-37]

 

                           TITLE 34--EDUCATION

 

PART 12_DISPOSAL AND UTILIZATION OF SURPLUS FEDERAL REAL PROPERTY FOR 

EDUCATIONAL PURPOSES--Table of Contents

 

                          Subpart D_Enforcement

 

Sec. 12.14  What are the sanctions for noncompliance with a term or 

condition of a transfer or lease of surplus Federal real property?





    (a) General sanctions for noncompliance. The Secretary imposes any 

or all of the following sanctions, as applicable, to all transfers or 

leases of surplus Federal real property:

    (1) If all or a portion of, or any interest in, the transferred or 

leased surplus Federal real property is not used or is sold, leased or 

subleased, encumbered, disposed of, or used for purposes other than 

those in the approved program and plan of use, without the prior written 

consent of the Secretary, the Secretary may require that--

    (i) All revenues and the reasonable value of other benefits received 

by the transferee or lessee directly or indirectly from that use, as 

determined by the Secretary, be held in trust by the transferee or 

lessee for the United States subject to the direction and control of the 

Secretary;

    (ii) Title or possession to the transferred or leased surplus 

Federal real property and the right to immediate possession revert to 

the United States;

    (iii) The surplus Federal real property be transferred or leased to 

another eligible entity as the Secretary directs;

    (iv) The transferee or lessee abrogate the conditions and 

restrictions in the transfer or lease instrument in accordance with the 

provisions of Sec. 12.15;

    (v) The transferee or lessee place the surplus Federal real property 

into immediate use for an approved purpose and extend the period of 

restriction in the transfer or lease instrument for a term equivalent to 

the period during which the property was not fully and solely used for 

an approved use; or

    (vi) The transferee or lessee comply with any combination of the 

sanctions



[[Page 37]]



described in paragraph (a)(1) or (a)(3) of this section.

    (2) If title or possession reverts to the United States for 

noncompliance or is voluntarily reconveyed, the Secretary may require 

the transferee or lessee--

    (i) To reimburse the United States for the decrease in value of the 

transferred or leased surplus Federal real property not due to--

    (A) Reasonable wear and tear;

    (B) Acts of God; or

    (C) Reasonable alterations made by the transferee or lessee to adapt 

the surplus Federal real property to the approved program and plan of 

use for which it was transferred or leased;

    (ii) To reimburse the United States for any costs incurred in 

reverting title or possession;

    (iii) To forfeit any cash payments made by the transferee or lessee 

against the purchase or lease price of surplus Federal real property 

transferred;

    (iv) To take any other action directed by the Secretary; or

    (v) To comply with any combination of the provisions of paragraph 

(a)(3) of this section.

    (3) If the transferee or lessee does not put the surplus Federal 

real property into use within the applicable time limitation in Sec. 

12.12(a), the Secretary may require the transferee or lessee to make 

cash payments to the Secretary equivalent to the current fair market 

rental value of the surplus Federal real property for each month during 

which the program and plan of use has not been implemented.



(Authority: 40 U.S.C. 484(k)(4))



    (4) If the Secretary determines that a lessee of a transferee or a 

sublessee of a lessee is not complying with a term or condition of the 

lease, or if the lessee voluntarily surrenders the premises, the 

Secretary may require termination of the lease.



(Authority: 40 U.S.C. 484(k)(4)(A))



    (b) Additional sanction for noncompliance with off-site transfer. In 

addition to the sanctions in paragraph (a) of this section, if the 

Secretary determines that a transferee is not complying with a term or 

condition of a transfer of off-site surplus Federal real property, the 

Secretary may require that the unearned PBA become immediately due and 

payable in cash to the United States.



(Authority: 40 U.S.C. 484(k)(4)(A))