it may be charged and a higher price has been offered by another person.

(e) Failure to offer-full amount or to exercise in time. All priorities not exercised during the priority period shall expire upon the termination of such period. In order to exercise his priority, a priority offeror shall bid the maximum price which he may be charged, which price shall be established in each case by the disposal agency. If his bid is less than his maximum price, such bid shall be treated as a nonpriority offer. The disposal agency may, in its discretion, permit priority holders to make offers after the priority period has ended, and such 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. If no offer is received during the priority period from a priority holder at the maximum price which he may be charged, the disposal agency shall certify that the requirements of § 8305.12 (c) (2) and (3) of this part have been complied with and that no priority holder exercised his priority during the priority period. A certified copy of such certification shall be given to any purchaser of the property.

§ 8305.12 Disposal methods and principles (a) Descriptions, surveys and subdivisions. The disposal agency shall obtain the full and correct legal description of the property to be disposed of and take the steps necessary to determine its exact location and area. Surveys shall be made, when necessary, and markers or monuments placed upon the ground. For disposal to others than Government agencies, State or local governments, former owners or tenants, surplus section 23 real property shall be subdivided by the disposal agency into appropriate units for disposal. Section 23 real property classified as suitable for agricultural use shall be subdivided by the disposal agency into economic family-size units 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 such units as seem suitable

in view of the character of the property, the use or uses to which it may be put and the possibilities of giving veterans and those who will use the property personally a fair opportunity to acquire and advantageously utilize the property. Plans for such subdividing shall be developed immediately after the disposal agency receives the declaration of surplus. The actual work of subdividing shall be carried forward as rapidly as practicable in view of all the circumstances, with effort made to complete the task at the earliest possible date after the expiration of the priority period. Subdivision 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.

(b) Evaluation and appraisal. When property is to be transferred to a Government agency without reimbursement, it will not be necessary to establish the fair value or current market value of the property. When such transfer is to be made with reimbursement, an estimate shall be made of its fair value. In all other cases, an estimate shall be made of its current market value. The term "fair value" means the maximum price which a well-informed buyer, acting intelligently and voluntarily, would be warranted in paying if he were acquiring the property for long-term investment or for continued use with the intention of devoting it to the best or most productive type of use for which the property is suitable or capable of being adapted. The term "current market value" means the highest price the property will bring in terms of money if offered for sale in the open market with reasonable time to find a purchaser buying with knowledge of the uses and purposes to which it is adapted and for which it is capable of being used. To determine such values, the disposal agency shall have the property appraised by experienced and qualified appraisers familiar with the types of property to be appraised by them. They may be staff appraisers of the disposal agency, individuals employed on a loan reimbursable basis from other Federal agencies or independent appraisers in private business. All appraisal reports shall contain the appraiser's certificate that he has no interest, direct or indirect, in the property or sale or disposition thereof.

(c) Notice and advertisement—(1) Wide publicity. The disposal agency shall avail itself of all suitable means to give wide publicity to the availability for disposal of surplus real property.

(2) Publication of notice. Except where a transfer is requested by a Government agency, including the Reconstruction Finance Corporation for resale to small business, the disposal agency, upon receipt of a declaration of surplus real property, shall promptly and widely publicize the property, giving information adequate to inform interested persons of the general nature of the property and its possible uses. Such publicity shall be by public advertising, and also may include press releases, display advertisements, and any other appropriate means which it is customary to use for advertising notices of sale. Public advertising shall consist of a sale notice containing substantially the matters set forth in Exhibit A of this part. With respect to other than section 23 real property, including structures to be disposed of separate from land, such notice shall be published one or more times during the ten (10) days following the date of the first publication. With respect to section 23 real property, exclusive of structures to be disposed of separate from land, such notice shall be published at least three (3) times during the ninety (90) days following the date such notice is first published, at approximate intervals of twenty-one (21) days, unless a Government agency or State or local government exercises its priority to acquire the property within the prescribed ten-day period of priority for such claimants.

(3) Notice by mail. Where a transfer is requested by one of the armed forces for national defense purposes prior to the conclusion of peace, its need being recognized as paramount, no notice to other Government agencies is required. In all other cases where a transfer is requested by a Government agency, including the Reconstruction Finance Corporation for resale to small business, the disposal agency shall send a notice of availability by mail to all Government agencies listed in Exhibit B of this part. At the time of the first publication of the notice required by subparagraph (2) of this paragraph, the disposal agency shall send a copy of such notice by mail to all Government agencies listed in Exhibit B hereof to the

State and the political subdivisions in which the property is located, and to the former owner when he is entitled to priority. The notice to the former owner shall be sent by registered mail to his last known address with return receipt requested.

(4) Additional notice. If the disposal agency wishes to permit priority holders who have not exercised their priorities during the priority period to submit offers after such period has expired, such additional notice may be given to priority holders as the disposal agency shall deem proper.

(d) Information available to purchasers. Every effort shall be made to have available in the office of the officer having charge of the disposal, as soon as possible after notice of availability is first published, all necessary information concerning the property. This shall include the appraised value of the property, the unit sizes in which the property will be sold to various classes of purchasers, the priorities and the time and method of exercising them, the maximum prices which may be charged different priority buyers (see paragraph (h) of this section) and all other terms and conditions of sale. Any person shall be entitled, upon request, to receive such information or have access thereto at all reasonable times, as well as information concerning offers, exercises of priorities and sales that have been made at the time of the inquiry.

(e) Offers and procedure thereon. During the prescribed priority periods, the disposal agency shall receive offers from priority and nonpriority buyers. No offers shall be accepted, however, until the expiration of the 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,

(2) Where a Government agency or State or local government exercises its priority to acquire surplus section 23 real property within the prescribed tenday period, or

(3) 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 ten-day period of priority for such claimants.

A dis

(2) Granting of easements. posal agency may grant easements in or over real property Provided: That the prior approval of the Administrator shall have been obtained where such easements affect the value of the property and, in such cases, the granting of the easements shall be for a consideration that is fair and reasonable, or without compensation when authorized by law.

(3) Leases or occupancy permits. The disposal agency may lease or grant a permit on surplus property to place it in productive use pending disposition, Provided, That such lease shall be revocable at the will of such disposal agency; and may also, with the approval of the Administrator, grant irrevocable leases where such action would be in the best interest of the Government and meet the objectives of the act.

(4) Renewal of leases and purchase of outstanding interests. The disposal agency may renew any lease in which the Government is lessee relating to surplus nonindustrial real property and shall assume and carry out any valid obligation which may have been entered into by the owning agency. The disposal agency as such shall not by exercise of any option or otherwise purchase nonindustrial real property for resale or lease without the prior written approval of the Administrator.

(5) Fissionable materials. (i) (a) In all disposals of lands hereafter made under the authority and provisions of the Surplus Property Act of 1944; (b) In all leases, permits, or other authorizations of whatever kind, hereafter granted to remove minerals from such lands; and (c) In all leases, permits or other authorizations which otherwise would preclude the United States from exercising its right to enter upon such lands and prospect for, mine, and remove minerals, there shall be reserved to the United States all fissionable materials in the lands, together with the right, at any and all times, to enter upon the lands

and prospect for, mine, and remove such materials; Provided, That no such reservation shall interfere with the primary use of the land established or indicated by any act of Congress; And provided further, That no such reservation shall be required whenever the Secretary of the Interior shall determine that the land affected does not contain substantial deposits of fissionable materials, or that, in view of all the circumstances, there is no reasonable probability that such materials are present in quantities sufficient to justify their extraction.

(ii) The term "fissionable materials" as used herein means (a) all deposits from which the substances known as thorium, uranium (including uranium enriched as to one of its isotopes), and elements higher than uranium in the periodic table, can be refined or produced, and (b) all deposits from which there can be refined or produced other substances determined by the President by Executive order to be readily capable of or peculiarly related to transmutation of atomic species, the production of nuclear fission, or the release of atomic energy. (Executive Order 9701, March 4, 1946, Title 3, Chapter II, supra)

(iii) Unless the lands are within the exceptions above provided, all notices of sale or availability given or published by the disposal agencies shall disclose that the lands involved will be disposed of or sold subject to the reservation of the mineral rights referred to in the foregoing subdivisions of this subparagraph.

(6) Water rights. (1) Water rights in connection with real property subject to irrigation shall ordinarily be disposed of with the real property to which they relate, whether such rights are evidenced by stock certificates in irrigation projects or otherwise, and shall be disposed of subject to the provisions of this part.

(ii) In order to meet the objectives of the act to discourage disposals for speculative purposes, it shall be the policy of the Administrator to dispose of such rights to the owners of the real property who may be entitled to the benefits thereof, rather than to persons who are not owners, and in quantities proportionate to the amount of property owned by such persons.

(iii) Former owners shall be entitled to a priority for any such rights acquired from them in connection with real prop

erty which they sold to the Government where such former owners are entitled to and claim priority as to such property.

(iv) Except as to former owners who are governed by the provisions of § 8305.12 (h) (2) as to price, the price to be charged for such water rights shall be the fair value thereof.

(g) Form of transfer. Deeds or instruments of transfer (other than leases) shall be in the form approved by the Attorney General. Transfers shall be by quitclaim deed unless the disposal agency finds that a warranty deed is necessary to obtain a reasonable price for the property or to render the title marketable and the use of such a deed is recommended and approved by the Attorney General as provided in the act.

(h) Prices; donations-(1) General requirements. The purchasers mentioned in subparagraphs (2), (3), (4) and (5) of this paragraph shall in no event be charged more than the prices at which they are entitled to purchase under the provisions of such subparagraphs. On sales or disposals to all others it shall be the duty of the disposal agency to obtain the highest competitive price actually obtainable. No sale or disposal shall be made at a price which is more than twenty-five (25) per centum below the current market value until such sale or disposal has been reviewed and approved by the Administrator, unless that price is the maximum price which may be charged the purchaser.

(2) Former owner and tenant. Persons purchasing surplus real property pursuant to the priority of a former owner or tenant of a former owner shall be entitled to purchase at the lower of (i) the current market value or (ii) the price for which the property was acquired by the Government adjusted to reflect any increase or decrease in the value of such property resulting from action by the United States.

(3) Government agencies. State or local governments, nonprofit institutions and owner-operators. Government agencies shall be entitled to acquire surplus real property at a price equal to the fair value. State or local governments, nonprofit institutions, and owner-operators shall be entitled to acquire surplus real property at a price equal to the current market value. State or local governments purchasing rights-of-way for

highways and streets, pursuant to the priority provided for in § 8305.11 (a) (2) shall be entitled to purchase the same at a rate of compensation not exceeding that paid for it by the Government. Government agencies shall be entitled to acquire property without charge where a transfer without reimbursement or transfer of funds is authorized by law. The disposal agency shall make such transfers of real property to Government agencies without reimbursement or transfer of funds whenever a transfer on such terms by the owning agency by which such property was declared surplus would be authorized by law to be made to the agency desiring such property.

(4) Veterans. Veterans and the spouse and children of deceased servicemen shall be entitled to purchase surplus real property at a price fixed by the disposal agency after taking into consideration the current market value, the character of the property, and, if income-producing, the estimated earning capacity thereof.

(5) Disposals for educational or health purposes. State or local governments or educational or public-health institutions seeking to acquire surplus real property for educational use or to promote and protect the public health may, with the approval of the Administrator, acquire such property at the current market value less any discount allowed because of the benefit which has accrued or may accrue to the United States by such use; Provided, That no such discounts may be allowed to any nonprofit institutions which are not exempt from taxation under section 101 (6) of the Internal Revenue Code. Applications for such discounts shall be filed with the Administrator and shall indicate with reasonable completeness the nature of the contemplated use of the property, the basis for claiming preferential treatment, a full description of the applicant, and the ways in which and the extent to which the United States will be benefited by the proposed use. Each such application shall be accompanied by a certificate by an authorized official of the buyer that the buyer is a State or local government or that it is a nonprofit institution as defined in § 8305.2 (b) (4) and that the property is being acquired for educational or health purposes. The application also shall be accompanied by