(15) days or the remainder of the priority period, whichever is longer, within which to make an offer.

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

§ 5.504-03 Time and method of exercise of priority by a tenant of a former owner. The time for exercise of a tenant's priority shall be a period of ninety (90) days after the date notice of availability is first published, or any additional period granted by the Administrator. Within such period the tenant shall indicate an intention to exercise the priority by submitting to the disposal agency a written offer to purchase accompanied by an appropriate deposit as determined by the district office. When, however, an offer cannot be made because the disposal agency lacks the necessary information on the price, units, or other matters, it shall be sufficient if a tenant files a written statement of his desire to acquire the property. After the necessary information becomes available, a tenant who has filed such a statement shall be so advised in writing and be given fifteen (15) days or the remainder of the priority period, whichever is longer, within which to make an offer. [Reg., Sept. 8, 1947, 12 F.R. 6354]

§ 5.504-04 Extent of tenant's priority The priority of a tenant not exercised during the priority period shall expire upon the termination of such period; provided the disposal agency may, in its discretion, permit a tenant to make an offer after the priority period has ended, as set forth in § 5.602-023. The priority of a tenant is limited to the particular property as described in 32 CFR Supps. 8305.11 (a) (4), and no assignment or transfer of a tenant's priority shall be recognized. The provisions of 32 CFR 8305.11 (c) shall apply to the exercise of a tenant's priority.

§ 5.506-01 Veteran's priority. A veteran and the spouse and children (in that order) of a person who died while in the active military or naval service of the United States on or after September 16, 1940, shall be accorded a priority as to all surplus section 23 real property classified by the WAA as suitable for agricultural, residential, or small business purposes. This priority shall be subordinate to the priorities of Government agencies, State and local governments, former owners. and tenants.

This priority ceases to exist after its holder has once effectively exercised it, or any other priority accorded by section 23 of the act, with respect to a tract.

Price to peterans.

The

§ 5.506-02 price to veterans shall be fixed after taking into consideration the current market value and the normal agricultural value based on normal returns with appropriate consideration to present conditions and current commodity prices. Any offer by a veteran at a price less than the maximum he may be charged shall be treated as a nonpriority offer.

§ 5.506-03 Time and method of exercise of veteran's priority. To exercise this priority a veteran or the spouse and children of a deceased serviceman must within the ninety (90) days after publication of the notice required by the regulations in this part or any extension thereof file a written offer to purchase or statement of desire to acquire the property or an appropriate unit thereof: Provided, That the disposal agency may in its discretion permit veterans, or the spouse and children of deceased servicemen, to make offers after the priority period and be considered on the same basis as if they had exercised their priority during the priority period as set forth in § 5.602-023. An offer or statement filed within the priority period, even if restricted by its terms to a specifically identified tract, shall preserve the veteran's priority with respect to any and all tracts of the project. Where an offer cannot be made because the disposal agency lacks the necessary information on the price, units, or other matters, it shall be sufficient if a veteran files a written statement of his desire to acquire the property. As soon as the necessary information becomes available, a veteran who has filled such an offer or statement shall be notified in writing and given fifteen (15) days or the remainder of the priority period, whichever is longer, within which to make an offer.

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

§ 5.506-03 Time and method of exercise of veterans' priority. The time for the exercise of a veteran's priority shall be a period of ten (10) days after the date given in the notice required by these regulations except where the former owner has a priority the time for the exercise of the veteran's priority shall be ninety (90) days after the date notice of availability is first published, or any extension thereof. Within the applicable period or any extension thereof the veteran or the spouse and children of a deceased serviceman shall file a written offer to

lacks the necessary information on the price, units, or other matters, it shall be sufficient if a nonprofit institution files a written statement of its desire to acquire the property. As soon as the necessary information becomes available, a nonprofit institution which has filed such a statement shall be notified in writing and given fifteen (15) days or, in the case of section 23 real property, the remainder of the priority period if that is longer, within which to make an offer. [Preceding section, in small type, superseded by following section during period covered by this Supplement]

§ 5.508-04 Time and method of exercise of nonprofit institution's priority. Nonprofit institutions shall have a period of ten (10) days after notice of availability is first published in which to exercise their priority except where the former owner has a priority the time for the exercise of a priority by a nonprofit institution shall be ninety (90) days after the date notice of availability is first published, or any extension thereof. Within the applicable period, a nonprofit institution shall file a written offer to purchase or statement of desire to acquire the property, accompanied by such deposit as the disposal agency may require. The written offer or statement shall show in detail the contemplated use of the property, and set forth that the property is being acquired to fulfill, in the public interest, the legitimate needs of the offerer. Such an offer or statement, even if restricted by its terms to a specifically identified tract, shall preserve the nonprofit institution's priority with respect to any and all tracts of the project. When an offer cannot be made because the disposal agency lacks the necessary information on the price, units, or other matters, it shall be sufficient if a nonprofit institution files a written statement of its desire to acquire the property. As soon as the necessary information becomes available, a nonprofit institution which has filed such a statement shall be notified in writing and given fifteen (15) days or the remainder of the priority period if that is longer, within which to make an offer. [Reg., Sept. 8, 1947, 12 F.R. 6254]

§ 5.511-01 Certificate to be executed by disposal agency covering giving of notice and failure of priority holders to exercise priority rights. After a sales contract is entered into between the disposal agency and a purchaser, the disposal agency shall certify that it has complied with the requirements of the

act and of the regulations of the War Assets Administration concerning the giving of notice and that no holder of a priority superior to that, if any, of the purchaser has exercised his priority rights within the time limits fixed by or pursuant to the act. The certificate shall be executed on Form FCA 1183 SPD and signed by the district vice president of the Corporation. A certified copy of such certificate shall be given to any purchaser of the property at the time of transfer.

DISPOSAL

§ 5.601-01 Terms of disposal. Disposals generally shall be of the entire interest of the Government, except as indicated in 32 CFR, Supps., Part 8305, and shall be made upon such terms and conditions as may be necessary to protect the interests of the Government and carry out the requirements of the act. No credit shall be extended by the disposal agency in its capacity as such except in special cases and with the prior approval of the central office. The project manager should in no instance recommend any particular credit agency. sales are to be on a cash basis, purchasers may be allowed a reasonable time, when necessary, in which to arrange for any financing needed to complete payment of the purchase price.

Where

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

§ 5.601-01 Terms of disposal. Disposals generally shall be of the entire interest of the Government, except as indicated in 32 CFR, Supps. Part 8305, and shall be made upon such terms and conditions as may be necessary to protect the interests of the Government and carry out the requirements of the act. A priority may be exercised only for the entire interest which is offered: Provided however, That the disposal agency may, in its discretion, accept an offer for less than such entire interest. No credit shall be extended by the disposal agency in its capacity as such except in special cases and with the prior approval of the central office. The project manager should in no instance recommend any particular credit agency. Where sales are to be on a cash basis, the purchaser or successful bidder shall be allowed a reasonable period of time within which to consummate the transaction and the purchaser or successful bidder shall be notified of the period allowed. [Reg., Sept. 8, 1947, 12 F.R. 6254]

§ 5.602-02 Offers to purchase. (a) During the applicable priority period, the project manager shall receive offers from priority and nonpriority prospective buyers. However, no offer shall be accepted during any priority period except in the following cases:

(1) Where an immediate transfer is requested by one of the armed forces for national defense purposes prior to the conclusion of peace, or

(2) Where an immediate transfer is requested by the National Housing Administrator pursuant to Public Law 292, 79th Congress (59 Stat. 674), and no application has been received from another Government agency offering the maximum priority price and showing a greater need for the property, or

(3) Where surplus section 23 real property is to be advertised for 90 days and a Government agency or State or local government exercises its priority within the prescribed 10-day period, the offer of the Government agency or State or local government may be accepted after the 10-day period and before the termination of the 90-day period, or

(4) Where a former owner exercises his priority to acquire surplus section 23 real property and no offer has been submitted by a Government agency or State or local government at its maximum price within the prescribed 10-day period of priority for such claimants.

(b) Offers by Government agencies, and offers by State and local governments where funds are not available shall be made as provided in §§ 5.501-03 and 5.502-03. All other offers shall be made on the "Offer to Purchase" form accompanied by a reasonable earnest money deposit ordinarily not less than 10 percent of the purchase price, in the form of cash, certified check, or post office money order payable to the Treasurer of the United States. Submission of offers to purchase by anyone entitled to priority shall not preclude any other party from submitting an offer.

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

(b) Offers by Government agencies, and offers by State and local governments where funds are not available, shall be made as provided in § 5.501-03 and § 5.502-03. All other offers shall be made on the "Offer to Purchase" form accompanied by a reasonable earnest money deposit ordinarily not less than

728472-48-supp. x-BK. 1—31

10 percent of the purchase price, in the form of cash, certified check, or post office money order payable to the Treasurer of the United States. Submission of offers to purchase by anyone entitled to priority shall not preclude any other party from submitting an offer. Unless otherwise authorized by the Administrator a State or local government or nonprofit institution shall certify that it is acquiring the property for the uses and purposes set forth in its offer and that it is not acquiring the property for the purpose of resale and in no case will it resell the property within three years without first obtaining the written consent of the Administrator; or if a lessee, that it will not assign the lease or sublet all of the property, or a portion of the property without the prior written consent of the Administrator. Any deed, lease, or other instrument conveying property subject to reservations, restrictions, or conditions as to the future use, maintenance or transfer of such property shall unless otherwise authorized by the Administrator recite all representations and agreements pertaining thereto. [Paragraph (b) amended Sept. 8, 1947, 12 F.R. 6254]

§ 5.602-023 Failure to exercise priority in time. The disposal agency may, in its discretion, permit priority holders to make offers after the priority period has ended, and offers may be considered on the same basis as if they had been submitted during the priority period. Such action by the disposal agency, however, shall not be construed as extending the priority period and such offers may not be accepted to the prejudice of a timely and acceptable offer from another priority offeror. Notice shall be given as provided in § 5.307-10.

§ 5.602-025 Former owner's and former tenant's affidavits of eligibility. Before the offer of a former owner or former tenant is accepted, he shall furnish an affidavit to the effect that he is a former owner or former tenant (as the case may be) of the property in question, and that in exercising his right of priority he is acting in his own right and behalf and not in behalf of, or as agent, attorney in fact, or trustee of, or in any representative or fiduciary capacity for, another. Before the affidavit is accepted from the former owner or the former tenant, he shall be informed of the substance of the provisions of section 26 of the act.

Page 471

§ 5.603-5-01 Subdividing or regrouping of tracts. For disposal to others than Government agencies, State or local governments, former owners or tenants, surplus real property shall be divided by the disposal agency into appropriate units for disposal. Section 23 real property classified as suitable for agricultural use shall be divided by the disposal agency into economic family-size units (including part-time farms) wherever practicable. The size of such units may vary according to the conditions and farming practices in the locality where the land is situated. Section 23 real property not classified as suitable for agricultural use shall be subdivided into appropriate units in view of the character of the property, the use or uses to which it may be put, and the possibility of giving veterans and those who will use the property personally a fair opportunity to acquire and utilize the property. Plans for dividing shall be developed as soon as practicable after the disposal agency receives the declaration of surplus. The actual work of dividing shall be completed at the earliest possible date after the expiration of the priority period. Division may be delayed if it appears that the property will be absorbed by the priorities of Government agencies, State or local governments, former owners, or tenants.

OFFERS FROM VETERANS

§ 5.604-01 Notice to veterans of remaining properties. After all acceptable offers from Government agencies, State or local governments, former owners, and tenants of former owners have been accepted, and the appraisal and pricing of the remaining tracts and units have been completed, the project manager will make out a list of all tracts and units for sale. In compiling these lists of properties a place for list prices will be indicated, so that the prices may be inserted later, when desired, on the list to be mailed to veterans who have a priority.

In carrying out the policy and intent of the act and the regulations of the War Assets Administration in affording an opportunity to veterans and the spouse or children of a deceased serviceman or servicewoman to acquire surplus property, the project manager shall notify in writing all those who have made offers or who have filed a written statement of their desire to acquire one or more units

of property, and give them fifteen (15) days within which to make an offer. This notice should generally describe the tract or units remaining to be sold and the conditions upon which written offers will be received at the project office during the period indicated.

§ 5.604-02 Obtaining formal offers from veterans. During the period referred to in § 5.604-01, offers should be received from all veterans who have retained their priority rights by filing a statement during the 90day priority period. Offers should be made on the regular form for any or all tracts listed as available. Since a veteran can buy only one tract, only one satisfactory earnest money deposit shall be required from a veteran even though he may make an offer on more than one tract. The Property Record will be posted in the project office and a copy of the offer submitted to the district supervisor's office with the remittance and receipt. The same procedure will be followed in the district supervisor's office and in the district office upon receipt of these offers, as was described for offers from others. The Index of Request card in the project office will be posted to show the amount offered and date.

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

§ 5.604-02 Obtaining formal offers from veterans. During the period referred to in § 5.604-01, offers should be received from all veterans who have retained their priority rights by filing a statement during the appropriate priority period provided for in § 5.506-03. Offers should be made on the regular form for any or all tracts listed as available. Since a veteran can buy only one tract, only one satisfactory earnest money deposit shall be required from a veteran even though he may make an offer on more than one tract. The Property Record will be posted in the project office and a copy of the offer submitted to the district supervisor's office with the remittance and receipt. The same procedure will be followed in the district supervisor's office and in the district office upon receipt of these offers as was described for offers from others. The Index of Request card in the project office will be posted to show the amount offered and date. [Reg., Sept. 8, 1947, 12 F.R. 6255]

§ 5.604-03 Selection of acceptable purchasers. At the end of the designated period all offers from veterans shall be reviewed for the purpose of selecting purchasers. If equal offers are received