[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: 13CFR314.3]

[Page 636-637]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 314_PROPERTY--Table of Contents
 
                            Subpart A_General
 
Sec.  314.3  Authorized Use of Property.

    (a) The Recipient or Owner must use any Property acquired or 
improved in whole or in part with Investment Assistance only for the 
authorized purpose of the Project and such Property must not be Disposed 
of or encumbered without EDA's prior written authorization.
    (b) Where EDA and the Recipient determine that Property acquired or 
improved in whole or in part with Investment Assistance is no longer 
needed for the original purpose of the Investment Assistance, EDA, in 
its sole discretion, may approve the use of such Property in other 
Federal grant programs or in programs that have purposes consistent with 
those authorized by PWEDA and by this chapter.
    (c) Where EDA determines that the authorized purpose of the 
Investment Assistance is to develop Real Property to be leased or sold, 
such sale or lease is permitted provided it is for Adequate 
Consideration and the sale is consistent with the authorized purpose of 
the Investment Assistance and with all

[[Page 637]]

applicable Investment Assistance requirements including but not limited 
to nondiscrimination and environmental compliance.
    (d) EDA, in its sole discretion, may approve the transfer of any 
Property from a Recipient to a Successor Recipient (or from one 
Successor Recipient to another Successor Recipient). The Recipient will 
remain responsible for complying with the rules of this part and the 
terms and conditions of the Investment Assistance for the period in 
which it is the Recipient. Thereafter, the Successor Recipient must 
comply with the rules of this part and with the same terms and 
conditions as were applicable to the Recipient (unless such terms and 
conditions are otherwise amended by EDA). The same rules apply to EDA-
approved transfers of Property between Successor Recipients.
    (e) When acquiring replacement Personal Property of equal or greater 
value than Personal Property originally acquired with Investment 
Assistance, the Recipient may, with EDA's approval, trade in such 
Personal Property originally acquired or sell the original Personal 
Property and use the proceeds for the acquisition of the replacement 
Personal Property; provided that the replacement Personal Property is 
for use in the Project. The replacement Personal Property is subject to 
the same requirements as the original Personal Property. In 
extraordinary and compelling circumstances, the Assistant Secretary may 
approve the replacement of Real Property used in a Project.
    (f) With EDA's prior written approval, a Recipient may undertake an 
incidental use of Property that does not interfere with the scope of the 
Project or the economic purpose for which the Investment was made; 
provided that the Recipient is in compliance with applicable law and the 
terms and conditions of the Investment Assistance, and the incidental 
use of the Property will not violate the terms and conditions of the 
Investment Assistance or otherwise adversely affect the economic useful 
life of the Property. Eligible Applicants and Recipients should contact 
the appropriate regional office (whose contact information is available 
via the Internet at http://www.eda.gov) for guidelines on obtaining 
approval for incidental use of Property under this section.