(3) property which in the opinion of the Commission should be retained by the Commission for its own use.

(b) Discretionary disposal of other real property. The Commission may, but shall not be required to, dispose of any other real property at the community, whether within or outside of that community.

(c) Terms and conditions; impairment of rights.

Such property shall be disposed of on such terms and conditions, consistent with this subchapter, as the Commission shall prescribe in the national interest, and without regard to any preferences or priorities whatever except those provided for pursuant to this chapter. Transfers by the Commission of such property shall not impair rights under existing leases and covenants, including any purchase rights therein conferred. (Aug. 4, 1955, ch. 543, ch. 5, § 52, 69 Stat. 476; Sept. 28, 1962, Pub. L. 87-719, § 9, 76 Stat. 665.)

AMENDMENTS

1962 Subsec. (a). Pub. L. 87-719 added clause (3). § 2343. Sales.

(a) Notice to priority holders.

Where rights of priority have been granted pursuant to the provisions of this chapter to Government-owned property, it shall be offered for sale to priority purchaser by giving notice to those eligible for such priority. Such notice shall (1) be in such manner as the Commission shall prescribe, (2) identify the property to be sold, and (3) state the terms and conditions of sale and the date of the offer which, in the case of occupants of single family or duplex houses, shall expire not less than ninety days after the date of the offer.

(b) Sale of property to highest bidder.

Any property (other than church property) classified for sale under section 2331 of this title and offered for sale under section 2342 of this title, as to which no priority right has been conferred, or as to which all priority rights have expired, shall be advertised for sale to the highest bidder, subject to the right of the Commission to reject any or all bids. No bid shall be accepted which is below the appraised value or, in the case of Government-owned single and duplex houses is below 85 per centum of the appraised value.

(c) Disposal of property not sold at auction.

As to any property which has not been sold under subsection (b) of this section within ninety days after the first advertisement for sale under such subsection the Commission may make such disposition, on such terms and conditions, as it may deem appropriate.

(d) Church property.

Property for use of churches, in respect of which all priority rights have expired, may be disposed of by advertising and competitive bid, or by negotiated sale or other transfer at such prices, terms, and conditions as the Commission shall determine to be fair and equitable. (Aug. 4, 1955, ch. 543, ch. 5, § 53, 69 Stat. 476; Aug. 30, 1961, Pub. L. 87-174, 75 Stat. 409; Sept. 28, 1962, Pub. L. 87-719, §§ 10, 11, 76 Stat. 665.)

AMENDMENTS

1962-Subsec. (b). Pub. L. 87-719, § 10, deleted from the first sentence, after "bids" the words ", and also subject to the right of an occupant of a Governmentowned single family or duplex house to buy such house by paying an amount equal to the highest bid."

Subsec. (c). Pub. L. 87-719, § 11, deleted the clause ", but the Commission shall give an occupant of a Government-owned single family or duplex house such further opportunity to purchase such house as shall be fair and equitable."

1961-Subsec. (c). Pub. L. 87-174 substituted "ninety days" for "one year."

§ 2344. Cash sales.

All sales shall be for cash, and the buyer shall arrange for the necessary financing, except as provided in sections 2361-2366 of this title. (Aug. 4, 1955, ch. 543, ch. 5, § 54, 69 Stat. 477.)

§ 2345. Deeds; form and provisions.

Deeds executed in connection with the disposal of property pursuant to the provisions of this chapter

(a) shall be as simple as the Commission shall find to be appropriate, and may contain such warranties or covenants of title and other provisions (including any indemnity) as the Commission may deem appropriate;

(b) with respect to any dormitories or apartment houses and any property used or to be used for construction of housing developments for rental purposes, may retain or acquire such rights to the Commission to designate the future occupants of part or all of such properties as it may deem appropriate to insure the availability of housing for employees of the Commission and its contractors;

(c) may require that the transferee, his heirs, successors, and assigns shall compensate the Commission for any municipal services provided by the Commission at rates which will not be in excess of the average tax for such services in the immediate vicinity of the community; and any amounts due and unpaid for such compensation (together with interest and costs thereon) shall, as of the date on which such amounts become delinquent, be a lien in favor of the United States upon the premises sold by the Commission, though not valid as against any mortgagee, pledgee, purchaser, or judgment creditor until notice thereof has been filed in accordance with the laws of the State in which the property is situated or in the office of the clerk of the United States district court for the judicial district in which the property subject to the lien is situated, if such State has not by law provided for the filing of such notice;

(d) in transferring any property pursuant to sections 2321 and 2342 of this title, may impose such restrictions and requirements relating to the use of the premises and to public health and safety, as the Commission may deem appropriate, which restrictions and requirements shall not be valid beyond one year after the incorporation of the city at the community or after June 30, 1966, in the case of Los Alamos; and

(e) may require that any payments in lieu of property taxes or assessments for local improvements made by the Commission with respect to the property shall be equitably prorated. (Aug. 4, 1955,

ch. 543, ch. 5, § 55, 69 Stat. 477; Sept. 28, 1962, Pub. L. 87-719, § 12, 76 Stat. 665.)

AMENDMENTS

1962-Subsec. (d). Pub. L. 87-719 added "or after June 30, 1966, in the case of Los Alamos" following "community."

§ 2346. Occupancy by existing tenants.

Upon application by any occupant of a single or duplex house made within the period of the first priority when such house is first offered for sale under this chapter, the Commission shall execute a lease to such occupant for a period not to exceed one year from the date on which such property is first offered for sale, or for such period as he remains a project-connected person, whichever is shorter. In selling any house with respect to which a lease executed under this section is in effect, the Commission may provide that the purchaser shall assume any or all obligations of the lessor, but the Commission shall guarantee the lessee's performance under the terms of the lease. (Aug. 4, 1955, ch. 543, ch. 5, § 56, 69 Stat. 478.)

§ 2347. Sale of lots to lessees or individual owners. (a) Notwithstanding any other provision of this chapter, the Commission is authorized, immediately upon passage of this chapter, or immediately upon the inclusion of the community within the provisions of this chapter, to offer for sale to the lessees single residential lots, which were leased by competitive bid and which do not have a Government-owned building thereon, at a price equal to the initial valuation of the lot as stated in the lease.

(b) The Commission is authorized to offer for sale, as soon as possible, other lots, to individual owners, upon which single family or duplex houses may be erected, taking into consideration the zoning restrictions the new city is likely to enact with respect to those lots. The zoning restrictions to be taken into account at Los Alamos shall be those which the local government is likely to enact with respect to those lots. (Aug. 4, 1955, ch. 543, ch. 5, § 57, 69 Stat. 478; Sept. 28, 1962, Pub. L. 87-719, § 13, 76 Stat. 665.)

AMENDMENTS

1962-Subsec. (b). Pub. L. 87-719 added the provision that "The zoning restrictions to be taken into account at Los Alamos shall be those which the local government is likely to enact with respect to those lots."

§ 2348. Sales to cooperatives; grants and termination of priorities; applicability of deduction, financing and indemnity provisions.

The Commission may grant to cooperatives, the entire initial membership of which is restricted to project-connected persons, such priorities for the purchase of apartment buildings as the Commission determines fair and reasonable. The priority with respect to each cooperative shall terminate if within such time as the Commission may prescribe the cooperative has not obtained one hundred per centum initial membership consisting of projectconnected persons. The 15 per centum deduction specified by section 2325(a) of this title, the deduction provided by section 2326(d) of this title, the financing provisions of section 2362 of this title, and the indemnity provided by sections 2363, 2364, 2365, and 2366 of this title shall be applicable to priority

sales of apartment buildings to such cooperatives. The term "cooperative" as used herein means a corporation or a trust of the character described in section 1715e(a)(1) of Title 12. (Aug. 4, 1955, ch. 543, ch. 5, §58, as added Sept. 28, 1962, Pub. L. 87– 719, 14, 76 Stat. 665.)

§ 2349. Hanford project; disposal of property.

In addition to any other authority the Commission may have, the Commission is authorized, without regard to the provisions of section 5 of Title 41, to lease land, and to sell, lease, including leases with options to purchase, and otherwise dispose of improvements thereon, and such equipment and other personal property as is determined to be directly related thereto, in the Commission's Hanford project in and near Richland, Washington, upon a determination by the Commission that such disposition will serve to prevent or reduce the adverse economic impact of actual or anticipated reductions in Commission programs in that area: Provided, however, That the compensation to the Government for any such disposition shall be the estimated fair market value or estimated fair rental value of the property as determined by the Commission: Provided further, That before the Commission makes any disposition of property under the authority of this section, the basis for the proposed disposition (with necessary background and explanatory data) shall be submitted to the Joint Committee on Atomic Energy, and a period of forty-five days shall elapse while Congress is in session (in computing such forty-fivedays, there shall be excluded the days on which either House is not in session because of adjournment of more than three days): Provided, however, That the Joint Committee on Atomic Energy, after having received the basis for the proposed disposition, may by resolution in writing waive the conditions of, or all or any portion of, such forty-five-day period. (Aug. 4, 1955, ch. 543, ch. 11, § 120, as added Aug. 1, 1964, Pub. L. 88-394, § 4, 78 Stat. 376.)

SUBCHAPTER V.-FINANCINC

§ 2361. Contract to purchase by priority purchaser. The Commission may, in the sale of any singlefamily or duplex house to a priority purchaser, enter into a contract to purchase which provides that the purchaser shall conclude his purchase within not more than three years after the date the contract is entered into. Such contracts to purchase shall provide for such periodic payments, including payments on account of principal, interest, or tax equivalents, as the Commission shall prescribe. (Aug. 4, 1955, ch. 543, ch. 6, § 61, 69 Stat. 478.)

§ 2362. Financing by Commission; advances; acceptance of notes; sale of notes and mortgages. (a) In the event that the Commission finds that financing on reasonable terms is not available from other sources, the Commission may, in order to facilitate the sale of residential property under sections 2341-2347 of this title, accept, in partial payment of the purchase price of any such property notes secured by first mortgages on such terms and conditions as the Commission shall deem appropriate. In the case of houses and apartment buildings, the ma

turity and percentage of appraised value in connection with such notes and mortgages shall not exceed those prescribed under section 1715n(a) of Title 12, and the interest rate shall equal the interest rate plus the premium being charged (and any periodic service charge being authorized by the Federal Housing Commissioner for properties of similar character) under section 1715n(a) of Title 12, at the effective date of such notes and mortgages. (b) In connection with the sale of residential property financed under subsection (a) of this section, the Commission is authorized to make advances for necessary repairs, or for the rehabilitation, modernization, rebuilding or enlargement of single and duplex residential properties to priority purchasers, and to include such advances in the amount of the note secured by the mortgage on such property.

(c) In the event that the Commission finds that financing on reasonable terms is not available from other sources, the Commission may, in order to facilitate the sale of commercial property under sections 2341-2347 of this title, accept, in partial payment of the purchase price of any commercial property notes secured by first mortgages on such terms and conditions as the Commission shall deem appropriate.

(d) The Commission may sell any notes and mortgages acquired under subsections (a) and (c) of this section on terms set by the Commission. Notwithstanding any other provisions of law and without regard to the provisions of section 5 of Title 41, the Commission may, in accordance with such terms and conditions as it may prescribe, (1) enter into contracts for servicing any of the notes and mortgages it has acquired, and (2) sell or enter into contracts to sell to a servicer any notes and mortgages with respect to which a servicing contract has been entered into by the servicer with the Commission: Provided, That with respect to sales of notes and mortgages under (2) the Commission shall comply with section 5 of Title 41 unless it determines that such compliance would not be feasible. (Aug. 4, 1955, ch. 543, ch. 6, § 62, 69 Stat. 478; July 26, 1956, ch. 731, § 2, 70 Stat. 653; Sept. 28, 1962, Pub. L. 87-719, §§ 15, 16, 76 Stat. 665.)

AMENDMENTS

1962-Subsec. (a). Pub. L. 87-719, § 15, substituted "such property" for "house, apartment building, or dormitory."

Subsec. (d). Pub. L. 87-719, § 16, added the provisions respecting servicing contracts and compliance with advertising requirements for public purchases when feasible.

1956 Subsec. (a). Act July 25, 1956 reenacted subsec. (a) without charge.

Subsecs. (b) and (c). Act July 25, 1956 added subsecs. (b) and (c) and redesignated former subsec. (b) as (d).

Subsec. (d), formerly (b). Act July 25, 1956 redesignated former subsec. (b) as (d) and included notes and mortgages acquired under subsec. (c) of this section.

§ 2363. Indemnity obligation of Commission; incorporation by reference in deed.

For a period of not more than fifteen years after August 4, 1955, or, in the case of Los Alamos, not more than fifteen years after the date it is included within this chapter, the Commission shall indemnify the purchaser (except a purchaser taking advantage

of the provisions of section 2326(d) of this title), and any successor in title, of any such single family or duplex house as set forth in this subchapter. This indemnity shall be deemed to be incorporated in the deeds given on the sale of Government-owned houses. One person may not invoke the indemnity in respect of more than one house. (Aug. 4, 1955, ch. 543, ch. 6, § 63, 69 Stat. 479; Sept. 28, 1962, Pub. L. 87-719, § 17, 76 Stat. 666.)

AMENDMENTS

1962-Pub. L. 87-719 inserted "or, in the case of Los Alamos, not more than fifteen years after the date it is included within this chapter" following "August 4, 1955." § 2364. Same; community employment and population. The indemnity obligation specified in section 2363 of this title shall arise only if, for the six months just preceding the date on which it is invoked

(a) the total number of operating, maintenance, and administrative employees in the project area, as determined by the Commission, has been less than fourteen thousand three hundred and thirty-seven in the case of Oak Ridge or seven thousand six hundred and twenty-two in the case of Richland or four thousand six hundred and twenty in the case of Los Alamos; and

(b) the population in the community has been less than twenty-nine thousand two hundred and fifty in the case of Oak Ridge or twenty-five thousand two hundred in the case of Richland or eleven thousand seven hundred and sixty-nine in the case of Los Alamos.

For purposes of this section employment shall be determined on the basis of the pay period or periods ending nearest the 15th of each month. (Aug. 4, 1955, ch. 543, ch. 6, § 64, 69 Stat. 479; Sept. 28, 1962, Pub. L. 87-719, §§ 18, 19, 76 Stat. 666.)

AMENDMENTS

1962-Subsec. (a). Pub. L. 87-719, § 18, added "or four thousand six hundred and twenty in the case of Los Alamos" following "Richland."

Subsec. (b). Pub. L. 87-719, § 19, added "or eleven thousand seven hundred and sixty-nine in the case of Los Alamos" following "Richland."

§ 2365. Amount of indemnity.

The indemnity obligation of the Commission specified in section 2363 of this title shall be for such amount, less the sales price of the property, as would have remained unpaid under a loan entered into on the date of the execution of the original deed by the Commission—

(1) which was in the amount of the purchase price from the Commission and provided for equal monthly payments of principal and interest over a period of twenty years computed on the basis of the average interest and other charges recorded for property of the same class at the community; and

(2) on which all payments due to the date when notice was received by the Commission had been made.

(Aug. 4, 1955, ch. 543, ch. 6, § 65, 69 Stat. 479.)

§ 2366. Conditions of indemnity; purchase of property by Commission.

The Commission shall make the indemnity payment specified by section 2365 of this title only if the

Commission receives a notice from the then owner of the property that he is about to sell the property for a sum less than the unpaid balance of the real or hypothetical loan calculated pursuant to such section. Such payment shall be made only if—

(a) notice is given to the Commission at a time when the conditions of section 2364 of this title are satisfied;

(b) the sale is made within such time as the Commission may prescribe and in a manner which the Commission determined to afford adequate assurance of a fair price without excessive costs; and

(c) the Commission is given such prior notice of the sale and such opportunity to become a purchaser as it shall prescribe.

In such circumstances the Commission is authorized to purchase the property. Sales pursuant to this section and payment by the Commission of such amount, if any, as is owing pursuant to sections 2363-2366 of this title shall end the obligation of the Commission under sections 2363-2366 of this title with respect of that property. (Aug. 4, 1955, ch. 543, ch. 6, § 66, 69 Stat. 479.)

SUBCHAPTER VI.-UTILITIES

§ 2371. Transfer of utilities.

The Commission is authorized to transfer to one or more of the entities specified in this subchapter such utilities as in the judgment of the Commission will be appropriate to enable the transferee to meet the needs of the residents of the community for adequate utility services of the kind to be transferred. (Aug. 4, 1955, ch. 543, ch. 7, § 71, 69 Stat. 480.)

§ 2372. Date of transfer of utilities.

Transfers of utilities shall be made as soon as possible, but in any event, not later than five years after August 4, 1955 in the case of Oak Ridge and Richland, or, in the case of Los Alamos, not later than five years after the date it is included within this chapter. (Aug. 4, 1955, ch. 543, ch. 7, § 72, 69 Stat. 480; Sept. 28, 1962, Pub. L. 87-719, § 20, 76 Stat. 666.)

AMENDMENTS

1962-Pub. L 87-719 added "in the case of Oak Ridge and Richland, or, in the case of Los Alamos, not later than five years after the date it is included within this chapter" following "August 4, 1955."

§ 2373. Transfer to governmental or other legal entity; determination of transferee.

(a) Transfer may be made to one or more of the following, if the transferee has the legal authority to receive and operate the utility.

(1) the city at the community;

(2) the State in which the community is located;

(3) any political subdivision or agency of that State; or

(4) any person, firm, corporation, or other legal entity.

(b) In determining the transferee for any utility, the Commission may consider the following:

(1) the pattern of ownership of the comparable utilities in the State in which the community is located;

(2) the ability of the transferee to operate the utility;

(3) the probable price of the sale of the utility, the ability of the transferee to pay that price, and any probable expense;

(4) the desires of the eligible voters of the community as directly expressed in any vote in any officially recognized procedure or in any procedure established by the Commission; and

(5) the benefit to the United States in reducing possible requirements for local assistance as authorized in sections 2381-2386 and 2391-2394 of this title.

(Aug. 4, 1955, ch. 543, ch. 7, § 73, 69 Stat. 480.)

§ 2374. Utilities transferable.

All utilities are authorized to be transferred under this subchapter, but shall not include property which the Commission determines to be needed for its own use. (Aug. 4, 1955, ch. 543, ch. 7, § 74, 69 Stat. 480.)

§ 2375. Gift of utility to city; charges and terms for utilities transferred to other transferees.

The Commission may give the utility to the city incorporated at the community; and must charge in selling the utility to any other transferee: Provided, That at Los Alamos, utilities may be given to the county or other local governmental entity. The charges and terms for the transfer of any utility may be established by advertising and competitive bid, or by negotiated sale or other transfer at such prices, terms, and conditions as the Commission shall determine to be fair and equitable. (Aug. 4, 1955, ch. 543, ch. 7, § 75, 69 Stat. 480; Sept. 28, 1962, Pub. L. 87-719, § 21, 76 Stat. 666.)

AMENDMENTS

1962-Pub. L. 87-719 inserted ": Provided, That at Los Alamos, utilities may be given to the county or other local governmental entity" following "transferee."

SUBCHAPTER VII.-MUNICIPALITIES

§ 2381. Assistance in organization.

The Commission is authorized, for a period not to extend beyond five years after August 4, 1955 in the case of Oak Ridge and Richland, or, in the case of Los Alamos, not to extend beyond five years after the date it is included within this chapter, to cooperate with and assist the residents of the community in preparation for and establishment of local self-government and in the transfer of municipal installations and responsibilities to local entities. Such assistance may include payment of any amounts reasonably necessary to meet expenses incident to the establishment and organization of a city government and other local entities at the community, until such time as the municipal installations are transferred in accordance with the provisions of this chapter. (Aug. 4, 1955, ch. 543, ch. 8, § 81, 69 Stat. 480, Sept. 28, 1962, Pub. L. 87-719, § 22, 76 Stat. 666.)

AMENDMENTS

1962-Pub. L. 87-719 inserted "in the case of Oak Ridge and Richland, or, in the case of Los Alamos, not to extend beyond five years after the date it is included within this chapter" following "August 4, 1955."

1962-Pub. L. 87-719 added "in the case of Oak Ridge and Richland, or, in the case of Los Alamos, not later than five years after the date it is included within this chapter" following "August 4, 1955."

§ 2384. Transfer to governmental entity or private nonprofit organization; determination of transferee.

(a) Transfers may be made to one or more of the following, if the entity has the legal authority to receive the installation: (1) the city at the community; (2) the State in which the community is located; (3) any political subdivision or agency of that State; or (4) a private nonprofit organization in the case of the hospital installation or cemetery at the community.

(b) In determining the entity to which school, hospital, and other municipal installations, respectively, shall be transferred, the Commission shall be governed, in order, by

(1) the results of a vote in which the eligible voters in the community expressed themselves directly on the transfer in the vote on the incorporation of the city;

(2) the results of a vote in which the eligible voters have directly expressed themselves on the proposed transfer in a referendum or other officially recognized procedure;

(3) there being only one entity which is legally authorized to receive the municipal installation;

or

(4) in the absence of the other alternatives, the Commission has conducted a vote of the eligible voters of the community on the proposed transfer under such procedures as it may establish. (Aug. 4, 1955, ch. 543, ch. 8, § 84, 69 Stat. 481.) § 2385. Installations transferable.

All municipal installations are authorized to be transferred under this subchapter, but shall not include property which the Commission determines to be needed for its own use. (Aug. 4, 1955, ch. 543, ch. 8, § 85, 69 Stat. 481.)

§ 2386. Transfer of installations without charge.

The transfer of any municipal installation authorized to be made under the provisions of this subchapter may be made without charge to the entity

SUBCHAPTER VIII.-LOCAL ASSISTANCE

§ 2391. Basis of assistance to governmental entities. (a) Annual assistance payments.

From the date of transfer of any municipal installations to a governmental or other entity at or for the community, the Commission shall, for a period of ten years, make annual assistance payments of just and reasonable sums to the State, county, or local entity having jurisdiction to collect property taxes or to the entity receiving the installation transferred hereunder. In determining the amount and recipient of such payments, the Commission shall consider

(1) the approximate real property taxes and assessments for local improvements which would be paid to the governmental entity upon property within the community if such property were not exempt from taxation by reason of Federal ownership;

(2) the maintaining of municipal services at a level which will not impede the recruitment or retention of personnel essential to the atomic energy program;

(3) the fiscal problems peculiar to the governmental entity by reason of the construction at the community as a single purpose national defense installation under emergency conditions; and

(4) the municipal services and other burdens imposed on the governmental or other entities at the community by the United States in its operations in the project area.

(b) Special interim payments.

Special interim payments may be made under the provisions of this section to any governmental entity which

(1) has a special burden due to the requirements under law imposed upon it in assisting in effectuating the purposes of this chapter for which it will not otherwise receive adequate compensation or revenues; or

(2) will suffer a tax loss or lapse in place of which it will not receive any other adequate revenues until the new governmental entities contemplated by this subchapter are receiving their normal taxes and performing their normal functions.

(c) Payments for special burdens.

Payments made under this section shall be payments made for special burdens imposed on the local governmental entities in accordance with the second sentence of section 2208 of this title. Payments may be made under this section notwithstanding the provisions of sections 236-245 of Title 20.

(d) Recommendation for further contribution pay.

ments.

With respect to any entity not less than six months prior to the expiration of the ten-year period referred to in subsection (a) of this section, the Commission shall present to the Joint Committee on Atomic Energy its recommendation as to the need for any further contribution payments to such