[Code of Federal Regulations]

[Title 15, Volume 3]

[Revised as of January 1, 2006]

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

[CITE: 15CFR2301.22]



[Page 511-512]

 

                  TITLE 15--COMMERCE AND FOREIGN TRADE

 

       CHAPTER XXIII--NATIONAL TELECOMMUNICATIONS AND INFORMATION 

                 ADMINISTRATION, DEPARTMENT OF COMMERCE

 

PART 2301_PUBLIC TELECOMMUNICATIONS FACILITIES PROGRAM--Table of Contents

 

                    Subpart D_Post-Award Requirements

 

Sec. 2301.22  Protection, acquisition, and substitution of equipment.



    (a) To assure that the Federal investment in public 

telecommunications facilities funded under the Act will continue to be 

used to provide public telecommunications services to the public during 

the Federal interest period, the Agency may require a grantee to:

    (1) Execute and record a document establishing that the Federal 

government has a priority lien on any facilities purchased with funds 

under the Act during the period of continuing Federal interest. The 

document shall be recorded where liens are normally recorded in the 

community where the facility is located and in the community where the 

grantee's headquarters are located; and

    (2) File a certified copy of the recorded lien with the 

Administrator ninety (90) days after the grant award is received.

    (b) The grantee shall maintain protection against common hazards 

through adequate insurance coverage or other equivalent undertakings, 

except that, to the extent the applicant follows a different policy of 

protection with respect to its other property, the applicant may extend 

such policy to apparatus acquired and installed under the project. The 

grantee shall purchase flood insurance (in communities where such 

insurance is available) if the facilities will be constructed in any 

area that has been identified by the Federal Emergency Management Agency 

as having special flood hazards.

    (c) The grantee shall not dispose of or encumber its title or other 

interests in the equipment acquired under this grant during the Federal 

interest period.

    (d) The grantee shall demonstrate that the grantee has obtained 

appropriate title or lease satisfactory to protect the Federal interest 

to the site or sites on which apparatus proposed in the project will be 

operated. The grantee must have the right to occupy, construct, 

maintain, operate, inspect, and remove the project equipment without 

impediment to assure the sufficient continuity of operation of the 

facility; and nothing must prevent the Federal government from entering 

the property and reclaiming or securing PTFP-funded property.

    (e) The Agency will allow the acquisition of facilities by lease; 

however, the following requirements apply:

    (1) The lease must be of benefit to the Federal government;

    (2) The actual amount of the lease must not be more than the 

outright purchase price would be; and

    (3) The lease agreement must state that in the event of anticipated 

or actual termination of the lease, the Federal government has the right 

to transfer and assign the leasehold to a new grantee for the duration 

of the lease contract.

    (f) Transfer of equipment. Where the grant equipment is no longer 

needed for the original purposes of the project, the Department may 

transfer the



[[Page 512]]



equipment to the Federal government or an eligible third party, in 

accordance with Office of Management and Budget guidelines.

    (g) Transfer of Federal interest to different equipment. The 

Department may transfer the Federal interest in PTFP-funded equipment to 

other eligible equipment presently owned or to be purchased by the 

grantee with non-Federal monies, provided the following conditions are 

met:

    (1) If the Federal interest is to be transferred to other equipment 

presently owned or to be purchased by a grantee, the Federal interest in 

the new equipment must be at least equal to the Federal interest in the 

original equipment.

    (2) Equipment previously funded by PTFP that is within the Federal 

interest period may not be used in a transfer request as the designated 

equipment to which the Federal interest is to be transferred.

    (3) The same item can be used only once to substitute for the 

Federal interest. However, the Federal interest in several items of 

equipment from different grants may be transferred to a single item if 

the request for all such transfers is submitted at the same time.

    (4) A lien on equipment transferred to the Federal interest may be 

required by PTFP and must be recorded in accordance with Sec. 

2301.23(b)(8). A copy of the lien document must be filed with the PTFP 

within sixty (60) days of the date of approval of the transfer of 

Federal interest.

    (h) Termination by buy-out. A grantee may terminate the Federal 

revisionary interest in a PTFP grant by buying out the Federal interest 

with non-Federal monies. Buy-outs may be requested at any time.