15 FAM 520
METHODS of DISPOSAL AND PROCESSING of proceeds
(CT:OBO-39; 12-16-2013)
(Office of Origin: OBO)
15 FAM 521 METHODS OF DISPOSAL
15 FAM 521.1 Capital Lease Property
(CT:OBO-39; 12-16-2013)
Lease termination is the preferred disposal method for capital lease property, but disposal may also be
accomplished through a sale of the lease interest, assignment of the lease, a
sub-lease of the property, or a license of the property. Post must obtain
guidance and approval from the Office of Real
Property Leasing in the Directorate for Planning
and Real Estate in the Bureau of Overseas Buildings Operations
(OBO/PRE/RPL) for Department of State properties, or, in the case of U.S. Agency for International Development (USAID) properties,
the Overseas Management Division, Office of Management Services, Bureau for
Management, USAID/Washington (USAID/W-M/MS/OMD).
15 FAM 521.2 Sales
(CT:OBO-39; 12-16-2013)
A sale is the preferred disposal method for U.S. Government-owned (GO) property. Post must
follow procedures in 15 FAM 532 after
a sale is authorized by OBO/PRE/RPL for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD.
15 FAM 521.3 Competitive Bidding
(CT:OBO-39; 12-16-2013)
Competitive bidding can be an effective disposal method
for GO property, especially when time is a factor and the property is of lesser
value, and/or there are several similar properties requiring disposal at the
same time. Unique and specific-use properties, however, may not lend
themselves readily to this method. The method has the advantages of reducing
carrying costs such as utilities and maintenance, creating competition among
potential buyers, eliminating negotiations, and keeping the U.S. Government in
full control. After the method is authorized by OBO/PRE/RPL
for Department of State properties,
or in the case of USAID properties, USAID/W-M/MS/OMD, the post must follow the
procedures in 15
FAM 533.
15 FAM 521.4 Property Exchanges
(CT:OBO-39; 12-16-2013)
Under certain circumstances, a property exchange may be
appropriate, but negotiations can be complicated and time consuming. When
considering an exchange, post must contact OBO/PRE/RPL
for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD. See 15 FAM 534.
15 FAM 521.5 Leases and Licenses
(CT:OBO-39; 12-16-2013)
If a real estate market is depressed, the property may
still be useful in the future. If its permanent disposal is not advisable,
leasing or licensing the property may be its best temporary use. Licensing is
preferable because a license generally creates no enforceable rights for the
licensee and does not diminish the U.S. Governments title rights. Lease and
license agreements require prior review and approval by OBO/PRE/RPL and the Office of the Legal Adviser
(L/BA) for properties controlled by Department of
State, or USAID/W-M/MS/OMD for properties controlled by USAID. See 15 FAM 535.
15 FAM 521.6 USAID Trust-Fund
Properties
(CT:OBO-22; 12-23-2011)
Trust-fund property is property purchased with
host-government funds for the support and use of a USAID mission. Missions
must maintain separate records for these properties. When disposing of
trust-fund properties, missions must do so in accordance with the terms and
conditions in the trust fund, bilateral agreement, or other document of
understanding, and with the prior approval of USAID/W-M/MS/OMD. A trust-fund
property must revert to the host government or else be sold and the sale
proceeds returned to the trust-fund account.
15 FAM 522 PROCESSING OF PROCEEDS AND
INCOME
15 FAM 522.1 Proceeds from Sale
or Exchange
(CT:OBO-39; 12-16-2013)
Post must deposit proceeds from sales or exchanges in the
Asset Management Account for Department of State properties,
or, in the case of USAID properties, the Property Management Fund; except for
USAID trust-fund properties (see 15 FAM 521.6).
The determination of the use of the proceeds will be based on worldwide
priorities:
(1) Department of State: Post
must deposit the gross amount with the U.S. disbursing officer into account
19X0535.4 AAAE (see 15 FAM 530, Procedures
for Disposal of Real Property, and 4 FAH-1 H-620,
Revenue Source Codes). OBO/PRE/RPL will
cable the post at the time of the settlement with detailed instructions on
deposit of sale proceeds; and
(2) USAID: Missions must
deposit the gross amount in the Property Management Fund, account 72X4175.
15 FAM 522.2 Income from Properties
under Lease or License
(CT:OBO-22; 12-23-2011)
a. Department of State: Post
must deposit payments received for GO properties to appropriation 19X0535.4
AAAIAAAE and report them in the U.S. disbursing officers monthly accounts.
For sub-leases, the payments are deposited to 19X0535.3 AAAH and for licenses,
the payments are deposited to 19X0535.3 AAAI.
b. USAID: Missions must
deposit payments to the General Receipts of the U.S. Treasury.
15 fam 523 through 529 unassigned