Government is obligated to take over under any type of contract as a result of any change in the specifications or plans thereunder.

(g) The term "care and handling" includes completing, repairing, converting, rehabilitating, operating, maintaining, preserving, protecting, insuring, storing, packing, handling, and transporting, and, in the case of property which is dangerous to public health or safety, destroying, or rendering innocuous, such property.

(h) The term “person” means any individual, corporation, partnership, firm, association, trust, estate, or other entity. (i) The term "State" includes the several States, Territories, and possessions of the United States, and the District of Columbia.

(j) The term "tax-supported institution" means any scientific, literary, educational, public-health, or public-welfare institution which is supported in whole or in part through the use of funds derived from taxation by the United States, or by any State or political subdivision thereof.

§ 5.103-02 Definitions; regulations of War Assets Administrator. The following definitions are contained in WAA revised Regulation 5 (32 CFR, Supps., Part 8305) and are adopted for the purposes of the regulations in this part:

(a) "Administration” means the War Assets Administration.

(b) "Administrator" means the War Assets Administrator.

(c) "Continental United States" means the 48 States and the District of Columbia.

(d) "Former owner" means the person from whom the real property was acquired by the Government.

(e) "Nonprofit institution” means any scientific, literary, educational, publichealth, public-welfare, charitable, or eleemosynary institution, any hospital or similar institution, and any volunteer fire company, (1) which is supported in whole or in part through the use of funds derived from taxation by the United States, its territories or possessions, or by any State or political subdivision thereof, or (2) which is exempt from taxation under section 101 (6) of the Internal Revenue Code.

(f) "Educational institution" means any school, school system, library, col

lege, university, or other similar institution, organization, or association, which is organized for the primary purpose of carrying on instruction or research in the public interest, and which is a nonprofit institution.

(g) "Offer" means a written offer to purchase surplus real property or a written application by a Government agency or a State or local government requesting that such property be held for disposal to it.

(h) "Owner-operator" means a person who will personally operate and cultivate agricultural land to earn a livelihood rather than lease it to a tenant.

[Preceding paragraph, in small type, superseded by following paragraph during period covered by this Supplement]

(h) "Owner-operator" means a person who seeks to acquire land classified as agricultural and represents that he expects to cultivate and operate the land for a livelihood. [Paragraph (h) amended Sept 8, 1947, 12 F.R. 6247]

(1) "Priority" means the right of a person, subject to stated conditions and limitations, to purchase surplus real property to the exclusion of other persons.

[Preceding paragraph, 'in small type, superseded by following paragraph during period covered by this Supplement]

(i) "Priority" means the right, subject to stated conditions and limitations, to acquire surplus real property to the exclusion of others. [Paragraph (1) amended Sept. 8, 1947, 12 F.R. 6247]

(j) "Public-health institution" means any hospital, board, agency, institution, organization, or association, which is organized for the primary purpose of carrying on medical, public health, or sanitational services in the public interest, or research to extend the knowledge in these fields, and which is a nonprof institution.

(k) "Real property" means any interest, owned by the United States or any Government agency, in real property, of any kind, wherever located, but does not include the public domain, or such lands withdrawn or reserved from the public domain as the War Assets Administration determines are suitable for return to the public domain for disposition under the general land laws. It is not limited to the definition thereof as contained in section 23 of the act.

(1) "Section 23 real property" means property consisting of land, together with any fixtures and improvements thereon

(including hotels, apartment houses, hospitals, office buildings, stores, and other commercial structures) located outside the District of Columbia, but does not include (1) commercial structures constructed by, at the direction of, or on behalf of any Government agency, (2) commercial structures which the Administrator determines have been made an integral part of a functional or economic unit which should be disposed of as a whole, and (3) war housing, industrial plants, factories, airports, airport facilities, or similar structures and facilities, or the sites thereof, or land which the Administrator determines essential to the use of any of the foregoing.

(m) "State or local government" means any State, territory, or possession of the United States, the District of Columbia, and any political subdivision or instrumentality thereof.

(n) "Veteran" means any person who served in the active military or naval service of the United States during the present war, or any person who served in the active military or naval service of the United States on or after September 16, 1940, and prior to the termination of the present war, and who has been discharged or released therefrom under honorable conditions. "Veterans released" from military or naval service shall include persons on terminal leave or final furlough and those whose status has been changed from "active" to "inactive."

(0) "War housing" means real properties improved with housing structures, acquired or constructed by the Government subsequent to September 8, 1939, either (1) for the purpose of housing servicemen, war workers, and their families, or (2) by the use of funds earmarked or appropriated for the housing of persons engaged in national defense activities, and their families.

(p) "Own" business enterprise of a veteran means one of which more than fifty (50) percent of the invested capital thereof is beneficially, and not merely nominally or formally, owned by a veteran or veterans, or one of which more than fifty (50) percent of the net income thereof beneficially, and not merely nominally or formally, accrues to a veteran or veterans.

(q) "Small business" as used herein with respect to a veteran, means a veteran's own small business and may include any commercial, agricultural, or industrial enterprise or

728472-48-SUPP. X-BK. 1 -29

group of enterprises under common ownership or control, which does not at the date of purchase of surplus real property hereunder have more than five hundred (500) employees, or any such enterprise which, by reason of its relative size and position in its industry, is determined by the disposal agency to be a small business. The disposal agency may in its discretion apply either or both criteria in determining whether or not the applicant is a small business.

[Preceding paragraph, in small type, superseded by following paragraph during period covered by this Supplement]

(q) "Small business" as used herein means an enterprise, or group of enterprises, under common ownership or control, which does not at the date of purchase or lease of surplus real property hereunder have more than five hundred (500) employees, or any such enterprise which, by reason of its relative size and position in its industry, is determined by the disposal agency to be a small business. The disposal agency may in its discretion apply either or both criteria in determining whether the applicant is a small business. [Paragraph (q) amended Sept. 8, 1947, 12 F.R. 6247]

(r) "Airport" or "airport property" means any area of land or water and the improvements, equipment, and facilities thereon suitable for and primarily used for or in connection with the landing and take-off or navigation of aircraft, and any area of land or water, improvements, equipment, and facilities, determined by the Administration to be suitable and necessary for the operation, expansion, or development of an airport.

(s) "Harbor" means any body of water sheltered by nature or by breakwaters, jetties, or similar structures, which affords anchorage for ships or other craft used in water-borne commerce. It in-. cludes the land, jetties, and breakwaters which form the sheltered water area as well as the structures and equipment which are required to keep the harbor in operative condition.

(t) "Improvements" means Government-owned structures, buildings, fixtures, facilities, utilities, and equipment attached to the realty.

(u) "Readily severable" means capable of being removed without substantial damage to either the property being removed or the premises.

(v) "Fair value" means the maximum price which a well-informed buyer, acting voluntarily and intelligently, would

Page 439

be warranted in paying if he were acquiring the property for long-time investment or for continued use with the intention of devoting such property to the best or most productive type of use to which the property is suitable or capable of being adapted. [Paragraphs (r)-(v) added Sept. 8, 1947, 12 F.R. 6247]

§ 5.103-03 Definitions; regulations of Farm Credit Administration. As used in this part:

(a) "Act" means the Surplus Property Act of 1944 as modified by the act of Sept. 18, 1945 (Pub. Law 181, 79th Cong., 59 Stat. 533; 50 U. S. C. App. Sup., 1614a, 1614b), E. O. 9689, Jan. 31, 1946, and any other amendatory or supplementary acts or executive orders.

(b) "FCA" means the Farm Credit Administration.

(c) "Central office" means the central office of the Farm Credit Administration.

(d) "District office" means the office of the FFMC maintained in each of the 12 Federal land banks, including the Regional Director of Surplus Property Disposal and district vice president.

(e) "FFMC" or "Corporation" means the Federal Farm Mortgage Corporation.

(f) "FLB" or "bank" means the Federal land bank serving the farm credit district in which a project of surplus agricultural real property concerned is located.

(g) "Project" means the area included in a particular assignment which may or may not be composed of contiguous parts.

(h) "Project office" means an office established on the site of the project or at such other place as may be designated where business relating to the disposal of property in the project may be transacted.

(i) "Tract" means a separate parcel of land as acquired by the Government or any other unit established by the disposal agency in reblocking an area.

(j) "USDA" means the United States Department of Agriculture.

(k) "WAA" means War Assets Administrator or War Assets Administration.

§ 5.105-01 USDA as disposal agency. WAA Regulation 1, section 2 (d), (32 CFR, Supps. 8301.2 (d)), designates the Department of Agriculture as the disposal agency for such surplus section 23 real property as the WAA shall classify as agricultural, forest, grazing, or mineral

§ 5.105-02 Delegations of authority. (a) An order of the Secretary of Agriculture dated April 26, 1945 (10 F. R. 4647), delegates, subject to his general supervision and direction, authority and responsibility to the Governor of the FCA, with authority to redelegate to any appropriate officer, agent, or employee of the FCA or of the USDA, including the FFMC, with a provision that the services and facilities of the Federal land banks and national farm loan associations may be used.

(b) An order of the Governor of the FCA dated April 28, 1945 (10 F. R. 4694), redelegates, subject to his general supervision and direction, authority and responsibility to FFMC, with a provision that the services and facilities of the Federal land banks and national farm loan associations may be used.

(c) An order of the Governor of the FCA dated August 3, 1945, as amended April 30, 1947, redelegates to the Land Bank Commissioner, subject to the Governor's supervision and direction, his supervisory powers related to surplus property disposal, and permits redelegation thereof to any officer or employee in the Land Bank Division of the FCA. An order of the Land Bank Commissioner, dated November 18, 1946, makes a further redelegation, subject to the Commissioner's supervision, to the Director of Surplus Property Disposal.

(d) A resolution of the Board of Directors of the FFMC adopted April 30, 1945, authorizes the President of the FFMC to act for the FFMC in executing the surplus property disposal program. An order of the President of the FFMC dated August 3, 1945, as amended April 30, 1947, appoints the president of each Federal land bank ex officio an executive officer of the Corporation with the title of Regional Director of Surplus Property Disposal and makes the Regional Director of Surplus Property Disposal responsible for the Corporation's surplus property disposal activities in the district, subject to the supervision of the president of the Corporation. A letter from the president of the Corporation to each district vice president dated August 3, 1945, appearing in the Appendix hereto as Exhibit 33,1 outlines

'Not filed with the Division of the Federal Register.

OFFICERS, EMPLOYEES, OR AGENTS $5.109-01 Purchase of surplus property by officers, employees, or agents. No officer, employee, or agent of the Farm Credit Administration, the Federal Farm Mortgage Corporation, or any institution under the supervision of the Farm Credit Administration shall, except in the exercise of a priority right pursuant to the Surplus Property Act of 1944 (58 Stat. 765; 50 U.S.C., App., Sup., 1611 et seq.), purchase any surplus property assigned for disposal to the Department of Agriculture as disposal agency for agricultural and forest property; and no sale of any such surplus property to any such officer, employee, or agent in the exercise of any such priority right shall be made except with the prior approval of the Farm Credit Administration. [Preceding section, in small type, superseded by following section during period covered by this Supplement]

§ 5.109-01 Purchase by officers, employees, or agents holding priorities. No officer, employee, or agent of the Farm Credit Administration, the FFMC, or any institution under the supervision of the FCA shall, except in the exercise of a priority right pursuant to the act, purchase any surplus property assigned for disposal to the USDA as disposal agency for real property; and no sale of any such surplus property to any such officer, employee, or agent in the exercise of any such priority right shall be made except with the prior approval of the FCA. [Reg., Sept. 8, 1947, 12 F.R. 6247]

FUNCTIONAL ORGANIZATION

$5.201-01 Services and facilities of existing Farm Credit Administration units. The units of the FCA whose services and facilities are used in the disposal of surplus property will function under the general direction of the Governor or officials designated by him. The experience of the Farm Credit Administration in connection with the servicing and selling of real estate acquired by the FFMC and the Federal land banks in the course of their regular business, the trained

personnel in the various units concerned, the existing field organization, and the distribution of offices make it unnecessary to set up a special separate organization to dispose of surplus real property. Whatever services may be required should be rendered with as little disturbance to the regular organization as practicable. Such time records should be maintained as will facilitate reimbursement of all expenses.

§ 5.201-02 Federal Farm Mortgage Corporation. The responsibility for disposal of surplus agricultural and forest property is that of the FFMC by delegation of authority from the Governor of the FCA. The Board of Directors of the Corporation has authorized the president of the Corporation to administer the program on behalf of the Corporation. Provision has been made for the use of the facilities of the FCA and the Federal land bank and, where desired, the national farm loan associations, in the performance of the necessary operations.

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

§ 5.201-02 Federal Farm Mortgage Corporation. The responsibility for disposal of surplus real property is that of the FFMC by delegation of authority from the Governor of the FCA. The Board of Directors of the Corporation has authorized the President of the Corporation to administer the program on behalf of the Corporation. Provision has been made for the use of the facilities of the FCA and the Federal land banks. and, where desired, the national farm loan associations, in the performance of the necessary operations. [Reg., Sept. 8, 1947, 12 F.R. 62471

§ 5.201-03 Facilities of central office of Farm Credit Administration. Services and facilities of the central office of the Farm Credit Administration will be used to the extent necessary or appropriate in administering the program.

§ 5.201-04 Federal land banks. It is expected that the services and facilities of the Federal land banks will be made available to the Corporation as needed in administering the program and in executing established policies, but the banks shall not exercise any authority or bear any responsibility of the disposal agency as such.

§ 5.201-05 National farm loan associations. While it is recognized that not many national farm loan association of

fices will be so located that their facilities can be used effectively, nevertheless in case such offices are located near project areas, it is possible that their services and facilities will be used if that is found convenient and practicable. The associations will not exercise any authority or bear any responsibility of the disposal agency as such.

§ 5.202-01 Farm Credit Administra(a) tion central office organization. The Governor of the FCA exercises general supervision and direction of the program and as President of the FFMC exercises the Corporation's authority and is responsible for actions taken in its

name.

(b) The Land Bank Commissioner, subject to the supervision and direction of the Governor, is responsible for the direction and supervision of the disposal program, using the facilities of the Land Bank Division and appropriate service divisions of the FCA, and supervises the Federal land banks (and national farm loan associations when used) in the discharge of their responsibilities in rendering services to the FFMC.

(c) The Director of Surplus Property Disposal, under supervision and direction of the Land Bank Commissioner, exercises supervision and direction of disposal program; advises with representative of WAA and with the office of Assistant Secretary of Agriculture on operations; advises with USDA agencies and other Government agencies concerned; advises with FCA service units; is responsible for assembling of data and preparation of necessary reports, maintenance of necessary control records and files, correspondence, and the formulation, preparation, and issuance of appropriate regulations; makes recommendations on policies and procedures to Land Bank Commissioner.

(d) Service units (1) Legal. Legal services to the FCA and FFMC in connection with the disposal of surplus agricultural and forest property will be rendered by the Office of the Solicitor.

[Preceding subparagraph, in small type, superseded by following subparagraph during period covered by this Supplement]

(d) Service Units-(1) Legal. Legal services to the FCA and FFMC in connection with the disposal of surplus real property will be rendered by the Office of the Solicitor. [Subparagraph (1) amended Sept. 8, 1947, 12 F.R. 6247]

(2) Appraisal. The Appraisal Subdivision will render assistance in developing policies and operating procedures relating to appraisal; exercise general supervision over appraisers; cooperate with the banks in arranging for appraisal services as needed; make field reviews of appraisal work; and render such other services relating to appraisals as may be deemed advisable.

(3) Real estate service and sales. This section of the Land Bank Division will assist in developing policies and procedures relating to leasing, care and handling, and sale of real property; advise with the Federal land banks on operating problems; and render such other services as may be considered advisable.

(4) Finance and accounts. The Finance and Accounts Division will be responsible for developing a manual of accounts in cooperation with the field units responsible for accounting operations; for maintenance of necessary accounts in the central office; for assembling necessary data for the preparation of reports; for general supervision of accounting operations; and for such other assistance on fiscal problems as may be necessary.

(5) Examination. (i) The operations of Farm Credit Administration, Federal Farm Mortgage Corporation, Federal land banks, and national farm loan associations relating to surplus property disposal shall be included within the scope of the examinations of these agencies conducted by the Examination Division of the Farm Credit Administration. The Examination Division is designated the compliance organization to perform the functions and duties required by Surplus Property Administration Regulation 15, dated November 16, 1945, and any other related requirements of the Surplus Property Administrator, the Department of Agriculture, or the Farm Credit Administration.

(ii) Section 5 of SPA Regulation 15, dated November 16, 1945 (32 CFR, 1945 Supp., 8315.5) provides that subject to the provisions set forth in 32 CFR, 1945 Supp., 8315.6, the Examination Division shall perform such investigatory functions as are necessary to insure compliance with the provisions of the act and with the regulations, orders, directions, and policy statements of the Administrator including:

(a) Periodic surveys of field unit disposal operations, to prevent or correct