USC Subchapter IV

USC Subchapter IV
in effect

40 U.S.C. § 571 General rules for deposit and use of proceeds

(a) Deposit in Treasury as Miscellaneous Receipts.—(1) In general.—Except as otherwise provided in this subchapter, proceeds described in paragraph (2) shall be deposited in the Treasury as miscellaneous receipts. (2) Proceeds.—The proceeds referred to in paragraph (1) are proceeds under this chapter from a—(A) transfer of excess property to a federal agency for agency use; or (B) sale, lease, or other disposition of surplus property. (b) Payment of Expenses of Sale Before Deposit.—Subject to regulations under this subtitle, the expenses of the sale of old material, condemned stores, supplies, or other public property may be paid from the proceeds of sale so that only the net proceeds are deposited in the Treasury. This subsection applies whether proceeds are deposited as miscellaneous receipts or to the credit of an appropriation as authorized by law.

40 U.S.C. § 572 Real property

(a) In General.—(1) Separate fund.—Except as provided in subsection (b), proceeds of the disposition of surplus real and related personal property by the Administrator of General Services shall be set aside in a separate fund in the Treasury. (2) Payment of expenses from the fund.—(A) Authority.—From the fund described in paragraph (1), the Administrator may obligate an amount to pay the following direct expenses incurred for the use of excess property and the disposal of surplus property under this subtitle:(i) Fees of appraisers, auctioneers, and realty brokers, in accordance with the scale customarily paid in similar commercial transactions. (ii) Costs of environmental and historic preservation services, highest and best use of property studies, utilization of property studies, deed compliance inspection, and the expenses incurred in a relocation. (iii) Advertising and surveying. (B) Limitations.—(i) Percentage limitation.—In each fiscal year, no more than 12 percent of the proceeds of all dispositions of surplus real and related personal property may be paid to meet direct expenses incurred in connection with the dispositions. (ii) Determination of maximum amount.—The Director of the Office of Management and Budget each quarter shall determine the maximum amount that may be obligated under this paragraph. (C) Direct payment or reimbursement.—An amount obligated under this paragraph may be used to pay an expense directly or to reimburse a fund or appropriation that initially paid the expense. (3) Transfer to miscellaneous receipts.—At least once each year, excess amounts beyond current operating needs shall be transferred from the fund described in paragraph (1) to miscellaneous receipts. (4) Report.—A report of receipts, disbursements, and transfers to miscellaneous receipts under this subsection shall be made annually, in connection with the budget estimate, to the Director and to Congress. (b) Real Property Under Control of a Military Department.—(1) Definitions.—In this subsection, the following definitions apply:(A) Military installation.—The term “military installation” has the meaning given that term in section 2687(e)(1) 11 See References in Text note below. of title 10. (B) Base closure law.—The term “base closure law” has the meaning given that term in section 101(a)(17) of title 10. (2) Application.—(A) In general.—This subsection applies to real property, including any improvement on the property, that is under the control of a military department and that the Secretary of the department determines is excess to the department’s needs. (B) Exceptions.—This subsection does not apply to—(i) damaged or deteriorated military family housing facilities conveyed under section 2854a of title 10; or (ii) property at a military installation designated for closure or realignment pursuant to a base closure law. (3) Transfer between military departments.—The Secretary of Defense shall provide that property described in paragraph (2) is available for transfer, without reimbursement, to other military departments within the Department of Defense. (4) Alternative disposition by administrator of general services.—If property is not transferred pursuant to paragraph (3), the Secretary of the military department with the property under its control shall request the Administrator to transfer or dispose of the property in accordance with this subtitle or other applicable law. (5) Proceeds.—(A) Deposit in special account.—For a transfer or disposition of property pursuant to paragraph (4), the Administrator shall deposit any proceeds (less expenses of the transfer or disposition as provided in subsection (a)) in a special account in the Treasury. (B) Availability of amount deposited.—To the extent provided in an appropriation law, an amount deposited in a special account under subparagraph (A) is available for facility maintenance and repair or environmental restoration as follows:(i) In the case of property located at a military installation that is closed, the amount is available for facility maintenance and repair or environmental restoration by the military department that had jurisdiction over the property before the closure of the military installation. (ii) In the case of property located at any other military installation—(I) 50 percent of the amount is available for facility maintenance and repair or environmental restoration at the military installation where the property was located before it was disposed of or transferred; and (II) 50 percent of the amount is available for facility maintenance and repair and for environmental restoration by the military department that had jurisdiction over the property before it was disposed of or transferred. (6) Report.—As part of the annual request for authorizations of appropriations to the Committees on Armed Services of the Senate and the House of Representatives, the Secretary of Defense shall include an accounting of each transfer and disposal made in accordance with this subsection during the fiscal year preceding the fiscal year in which the request is made. The accounting shall include a detailed explanation of each transfer and disposal and of the use of the proceeds received from it by the Department of Defense.

40 U.S.C. § 573 Personal property

The Administrator of General Services may retain from the proceeds of sales of personal property the Administrator conducts amounts necessary to recover, to the extent practicable, costs the Administrator (or the Administrator’s agent) incurs in conducting the sales. The Administrator shall deposit amounts retained into the Acquisition Services Fund established under section 321(a) of this title. From the amounts deposited, the Administrator may pay direct costs and reasonably related indirect costs incurred in conducting sales of personal property. At least once each year, amounts retained that are not needed to pay the direct and indirect costs shall be transferred from the Acquisition Services Fund to the general fund or another appropriate account in the Treasury.

40 U.S.C. § 574 Other rules regarding proceeds

(a) Credit to Reimbursable Fund or Appropriation.—(1) Application.—This subsection applies to property acquired with amounts—(A) not appropriated from the general fund of the Treasury; or (B) appropriated from the general fund of the Treasury but by law reimbursable from assessment, tax, or other revenue or receipts. (2) In general.—The net proceeds of a disposition or transfer of property described in paragraph (1) shall be—(A) credited to the applicable reimbursable fund or appropriation; or (B) paid to the federal agency that determined the property to be excess. (3) Calculation of net proceeds.—For purposes of this subsection, the net proceeds of a disposition or transfer of property are the proceeds less all expenses incurred for the disposition or transfer, including care and handling. (4) Alternative credit to miscellaneous receipts.—If the agency that determined the property to be excess decides that it is uneconomical or impractical to ascertain the amount of net proceeds, the proceeds shall be credited to miscellaneous receipts. (b) Special Account for Refunds or Payments for Breach.—(1) Deposits.—A federal agency that disposes of surplus property under this chapter may deposit, in a special account in the Treasury, amounts of the proceeds of the dispositions that the agency decides are necessary to permit—(A) appropriate refunds to purchasers for dispositions that are rescinded or that do not become final; and (B) payments for breach of warranty. (2) Withdrawals.—A federal agency that deposits proceeds in a special account under paragraph (1) may withdraw amounts to be refunded or paid from the account without regard to the origin of the amounts withdrawn. (c) Credit to Cost of Contractor’s Work.—If a contract made by an executive agency, or a subcontract under that contract, authorizes the proceeds of a sale of property in the custody of a contractor or subcontractor to be credited to the price or cost of work covered by the contract or subcontract, then the proceeds of the sale shall be credited in accordance with the contract or subcontract. (d) Acceptance of Property Instead of Cash.—An executive agency entitled to receive cash under a contract for the lease, sale, or other disposition of surplus property may accept property instead of cash if the President determines that the property is strategic or critical material. The property is valued at the prevailing market price when the cash payment becomes due. (e) Management of Credit, Leases, and Permits.—For a disposition of surplus property under this chapter, if credit has been extended, or if the disposition has been by lease or permit, the Administrator of General Services, in a manner and on terms the Administrator determines are in the best interest of the Federal Government—(1) shall administer and manage the credit, lease, or permit, and any security for the credit, lease, or permit; and (2) may enforce, adjust, and settle any right of the Government with respect to the credit, lease, or permit.

Starting a business? Corpus forms LLCs in all 50 states and DC.