§ 314.2 - Federal Interest.

§ 314.2 Federal Interest.

Cross Reference

Link to an amendment published at 82 FR 57059, Dec. 1, 2017.

(a) Property that is acquired or improved, in whole or in part, with Investment Assistance Subject to the obligations and conditions set forth in this part and in relevant provisions of 2 CFR part 200, Project Property vests upon acquisition in the Recipient (or, if approved by EDA, in a Co-recipient or Subrecipient). Project Property 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 ensures compliance with matters such as EDA Project requirements, including those related to the purpose, scope, and use of a Project and is often reflected by . The Recipient typically must secure the Federal Interest through 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 § 314.8.).

(b) When the Federal government Government is fully compensated for the Federal Share of Project Property acquired or improved, in whole or in part, with Investment Assistance, the Federal Interest is extinguished and the Federal government Government has no further interest in the Property, except as provided in § 314.10(e)(3) regarding nondiscrimination requirements.

[82 FR 57059, Dec. 1, 2017]