§ 3015.170 - Damage, loss, or theft of equipment.

(a) Applicability. This section applies to equipment with a unit acquisition cost of $1,000 or more that, before disposal (see §3015.168), is damaged beyond repair, lost, or stolen.

(b) Recipient at fault—(1) Applicability. This paragraph applies if:

(i) At the time of the damage, loss, or theft, the recipient does not have a control system in effect as required by §3015.169, and

(ii) The damage, loss, or theft is not due to an act of God.

(2) Equipment replaced. If the equipment is replaced, the replacement is governed by §3015.167. When that happens, the market value of the original equipment at the time it was damaged, lost, or stolen is used instead of the amount received for trade-in or sale.

(3) Equipment not replaced. If the equipment is not replaced, the Federal government has a right to an amount calculated by multiplying the Federal share in the equipment by its market value at the time of damage, loss, or theft. The amount is reduced pro rata if part of the Federal share of the equipment comes from an award under which the exemption in §3015.164 applied.

(4) Other remedies. The provisions in this paragraph (b) are in addition to other remedies available to the awarding agency if a recipient acquires equipment with grant support but fails to establish the control system required by §3015.169.

(c) Recipient not at fault—(1) Applicability. This paragraph applies if:

(i) At the time of the damage, loss, or theft, the recipient does have a control system in effect as required by §3015.169(c) or

(ii) The damage, loss, or theft is due to an act of God.

(2) Recipient not compensated. If the recipient is not compensated for the damage, loss, or theft, through insurance or some other means, there is no obligation to USDA for the equipment.

(3) Recipient compensated. If the recipient is compensated for the damage, loss, or theft and replaces the equipment, §3015.167 applies to the replacement equipment. If the recipient is compensated but does not replace the equipment, §3015.168 applies as though the recipient had sold the equipment. (All of §3015.168 applies including the rule permitting the amount due the Federal government to be reduced by 10 percent of the proceeds or $100, whichever is greater.) The amount received for trade-in or sale is considered the lesser of (i) the amount of compensation or (ii) the market value of the equipment at the time it was damaged, lost, or stolen.

(d) Waivers. The awarding agency may waive in whole or in part any provision of this section.