Appendix A to Part 1130 - Terms and Conditions for PROP Article I, “Title to Property”
2:1.2.8.6.14.6.64.6.35 : Appendix A
Appendix A to Part 1130 - Terms and Conditions for PROP Article I,
“Title to Property”
Unless a DoD Component inserts or adds wording or reserves
sections of the article, as provided in §§ 1130.105 through
1130.125, a DoD Component's general terms and conditions must use
the following wording for PROP Article I.
PROP Article I. Title to Property. (December 2014)
Section A. Title to property acquired under this
award.
1. General. Other than any property identified in
paragraph A.2 of this section as exempt property:
a. Title to real property, equipment, and supplies that you
acquire (whether by purchase, construction or fabrication,
development, or otherwise) and charge as direct project costs under
this award vests in you, the recipient. Title to intangible
property that you acquire (other than by developing or producing
it) under this award also vests in you.
b. That title is a conditional title, subject to the terms and
conditions in PROP Articles II-IV, Section D of PROP Article VI,
and REP Article III of this award.
c. There is a Federal interest in the property, other than
intangible property that you develop or produce under the award.
For real property, equipment, and intangible property, we retain
this Federal interest until final disposition of the property under
PROP Article III (for real property), PROP Article IV (for
equipment and supplies), or Section D of PROP Article VI (for
intangible property that is acquired, other than by developing or
producing it), a period that in some cases may extend beyond
closeout of this award.
2. Exempt property. [Reserved].
Section B. Property trust relationship.
1. Basic requirement. Other than intangible property that
you develop or produce under the award, you hold any real property,
equipment, or intangible property that you acquire or improve under
this award in trust for the beneficiaries of the project or program
that you are carrying out under the award.
2. Notices of record. [Reserved].
Section C. Federally owned property. Title to any
federally owned property that we provide to you under this award
(or for which accountability is transferred to this award from
another Federal award) remains with the Federal Government.
Section D. Federal interest in donated real property or
equipment. If real property or equipment is acquired under this
award through your donation of the property to the project or
program (i.e., counting the value of the remaining life of
the property recorded in your accounting records or the fair market
value as permitted under FMS Article VI of this award as part of
your share of project costs to meet any cost sharing or matching
requirements, rather than charging depreciation):
1. The Federal Government acquires through that donation an
interest in the real property or equipment, the value of which at
any given time is the product of:
a. The Federal share of the project costs under this award;
and
b. The current fair market value of the property at that
time.
2. The real property or equipment is subject to Section B of
this article and the terms and conditions of PROP Articles II-IV
and REP Article III that are applicable to property acquired under
the award.
3. The Federal interest in the real property or equipment must
be addressed at the time of property disposition.
Section E. Federal interest in property improved under the
award.
1. The Federal Government has an interest in improvements (as
distinct from ordinary repairs and maintenance) you make to an item
of real property or equipment if you charge the costs of the
improvements as direct costs to this award.
2. We thereby acquire an interest in the property if the
Government did not previously have one. If the Government already
had an interest in the property, the value of that Federal interest
in the property increases by the amount of the Federal interest in
the improvements.
3. The property is subject to Section B of this article and the
terms and conditions of PROP Articles II-IV and REP Article III
that are applicable to real property or equipment acquired under
the award.
4. The Federal interest must be addressed at the time of
property disposition.