[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR314.2]

[Page 636]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 314_PROPERTY--Table of Contents
 
                            Subpart A_General
 
Sec.  314.2  Federal Interest.

    (a) Property that is acquired or improved, in whole or in part, with 
Investment Assistance shall be held in trust by the Recipient for the 
benefit of the Project for the Estimated Useful Life of the Project, 
during which period EDA retains an undivided equitable reversionary 
interest in the Property (the ``Federal Interest''). The Federal 
Interest secures compliance with matters such as the purpose, scope and 
use of a Project and is often reflected by a recorded lien, statement or 
other recordable instrument setting forth EDA's Property interest in a 
Project (e.g., a mortgage, covenant, or other statement of EDA's Real 
Property interest in the case of a Project involving the acquisition, 
construction or improvement of a building. See Sec.  314.8.)
    (b) When the Federal government is fully compensated for the Federal 
Share of Property acquired or improved, in whole or in part, with 
Investment Assistance, the Federal Interest is extinguished and the 
Federal government has no further interest in the Property.