[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: 13CFR314.4]

[Page 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.  314.4  Unauthorized Use of Property.

    (a) Except as provided in Sec. Sec.  314.3 (regarding the authorized 
use of Property) or 314.10 (regarding the release of EDA's interest in 
certain Property), or as otherwise authorized by EDA, the Federal 
government must be compensated by the Recipient for the Federal Share 
whenever, during the Estimated Useful Life of the Project, any Property 
acquired or improved in whole or in part with Investment Assistance is 
Disposed of, encumbered, or no longer used for the purpose of the 
Project; provided that for equipment and supplies, the requirements at 
15 CFR parts 14 or 24, as applicable, including any supplements or 
amendments thereto, shall apply.
    (b) Additionally, prior to the release of EDA's interest, Real 
Property or tangible Personal Property acquired or improved with EDA 
Investment Assistance may not be used:
    (1) In violation of the nondiscrimination requirements of Sec.  
302.20 of this chapter or in violation of the terms and conditions of 
the Investment Assistance; or
    (2) For any purpose prohibited by applicable law.
    (c) Where the Disposition, encumbrance or use of any Property 
violates paragraphs (a) or (b) of this section, EDA may assert its 
interest in the Property to recover the Federal Share for the Federal 
government and may take such actions as authorized by PWEDA and this 
chapter, including but not limited to the actions provided in Sec. Sec.  
302.3 and 307.21 of this chapter. EDA may pursue its rights under 
paragraph (a) of this section and this paragraph (c) to recover the 
Federal Share, plus costs and interest. When the Federal government is 
fully compensated for the Federal Share, the Federal Interest is 
extinguished as provided in Sec.  314.2(b), and EDA will have no further 
interest in the ownership, use or Disposition of the Property.

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