B-17898, JULY 3, 1941, 21 COMP. GEN. 3

B-17898: Jul 3, 1941

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ARE FOR DEPOSIT AND COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. 1941: I HAVE YOUR LETTER OF JUNE 12. WHICH WAS ACQUIRED AT AN EXECUTION SALE UPON DEFAULT OF TWO LOANS MADE RESPECTIVELY UNDER THE JOINT RESOLUTION OF DECEMBER 20. BOTH PARCELS WERE REPORTED AS SURPLUS REAL ESTATE TO THE PUBLIC BUILDINGS ADMINISTRATION FOR DISPOSITION UNDER THE ACT OF AUGUST 27. - 151.82 YOUR OPINION IS REQUESTED AS TO WHETHER THE NET PROCEEDS OF THE SALES OF THIS REALTY PURSUANT TO THE ACT OF AUGUST 27. IRRESPECTIVE OF WHAT APPROPRIATIONS MIGHT HAVE BEEN FOR CREDITING HAD THE FARM CREDIT ADMINISTRATION BEEN SUCCESSFUL IN SELLING THE PROPERTIES FOR CASH AT THE FORECLOSURE PROCEEDINGS. THE FACT REMAINS THAT THE PROPERTIES WERE NOT SO SOLD AND WHEN BID IN BY THE FARM SECURITY ADMINISTRATION THE TITLE THERETO VESTED IN THE UNITED STATES.

B-17898, JULY 3, 1941, 21 COMP. GEN. 3

SALE OF SURPLUS REAL ESTATE - DISPOSITION OF PROCEEDS THE PROCEEDS REALIZED FROM THE SALE OF REAL ESTATE, TURNED OVER TO THE PUBLIC BUILDINGS ADMINISTRATION FOR DISPOSITION AS SURPLUS REAL ESTATE UNDER THE ACT OF AUGUST 27, 1935, AS AMENDED, AFTER ACQUISITION BY THE FARM CREDIT ADMINISTRATION AT FORECLOSURE PROCEEDINGS UPON DEFAULT OF LOANS MADE BY THE LATTER ADMINISTRATION, ARE FOR DEPOSIT AND COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, UNDER THE TITLE " SALE OF LAND, PUBLIC BUILDINGS ADMINISTRATION," AND NOT FOR DEPOSIT TO THE CREDIT OF ANY APPROPRIATION OF FUND OF THE FARM CREDIT ADMINISTRATION.

COMPTROLLER GENERAL WARREN TO THE FEDERAL WORKS ADMINISTRATOR, JULY 3, 1941:

I HAVE YOUR LETTER OF JUNE 12, 1941, AS FOLLOWS:

THE FARM CREDIT ADMINISTRATION ACQUIRED A PARCEL OF REAL ESTATE IN CAYEY, PUERTO RICO, THROUGH THE FORECLOSURE OF A MORTGAGE HELD AS SECURITY ON DEFAULTED LOANS MADE UNDER AUTHORITY OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935, 49 STAT. 115 AND EXECUTIVE ORDER NO. 7305, DATED FEBRUARY 28, 1936; ALSO A PARCEL OF REAL ESTATE IN LESLIE COUNTY, KENTUCKY, WHICH WAS ACQUIRED AT AN EXECUTION SALE UPON DEFAULT OF TWO LOANS MADE RESPECTIVELY UNDER THE JOINT RESOLUTION OF DECEMBER 20, 1930, 46 STAT. 1032, AND THE ACTS OF JANUARY 22, 1932 ( R.F.C.), 47 STAT. 5, AND FEBRUARY 4, 1933, 47 STAT. 795. BOTH PARCELS WERE REPORTED AS SURPLUS REAL ESTATE TO THE PUBLIC BUILDINGS ADMINISTRATION FOR DISPOSITION UNDER THE ACT OF AUGUST 27, 1935, 49 STAT. 885, AS AMENDED ( U.S.C. TITLE 40, SEC. 304A). THE FARM CREDIT ADMINISTRATION HAS REQUESTED THAT, PURSUANT TO (1926) 6 COMP. GEN. 337, THE NET PROCEEDS OF ANY SALES OF SAID REALTY, TO THE EXTENT THAT THEY MAY BE ADEQUATE, BE CREDITED AS FOLLOWS: MISCELLANEOUS RECEIPTS --- REPAYMENT OF PRINCIPAL ON EMERGENCY CROP

SYMBOL NO. 125427 LOANS FARM CREDIT ADMINISTRATION

(EMERGENCY RELIEF) ------------ $799.74 MISCELLANEOUS RECEIPTS ---

INTEREST ON EMERGENCY CROP LOANS, FARM

SYMBOL NO. 121753 CREDIT ADMINISTRATION (EMERGENCY

RELIEF) ----------------------- 121.12

TOTAL (RE: CAYEY, P. R., REALTY) -------------------- 920.86 APPROPRIATION SYMBOL ----- LOANS TO FARMERS IN DROUGHT AND

NO. 121/23018 STORM-STRICKEN AREAS, EMERGENCY

( OLD NO. 4701/2597) RELIEF 1931-32 ---------------- 90.53 MISCELLANEOUS RECEIPTS --- INTEREST, FARMERS' SEED AND FEED

SYMBOL NO. 121140 LOANS ------------------------- 25.04

( OLD NO. 471044) RECEIPT TITLE ------------ CROP PRODUCTION LOAN FUNDS ACTS

NO. 126850.1 OF JANUARY 22, 1932, AND FEBRUARY 4,

( OLD NO. 476850) 1933 ( R.F.C./--------------- 36.25

TOTAL (RE: LESLIE COUNTY, KY., REALTY) ----------- 151.82

YOUR OPINION IS REQUESTED AS TO WHETHER THE NET PROCEEDS OF THE SALES OF THIS REALTY PURSUANT TO THE ACT OF AUGUST 27, 1935, MAY BE CREDITED AS REQUESTED TO THE RESPECTIVE ORIGINAL APPROPRIATION ACCOUNTS OF THE FARM CREDIT ADMINISTRATION OR MUST BE DEPOSITED INTO THE TREASURY AS " MISCELLANEOUS RECEIPTS SYMBOL NO. 805598, SALE OF LAND, PUBLIC BUILDINGS ADMINISTRATION" (OTHER MISCELLANEOUS RECEIPTS PUBLIC BUILDINGS ADMINISTRATION ACCOUNTS BEING CREDITED WITH THE PROCEEDS OF LEASES AND ASSIGNMENTS MADE UNDER THE ACT OF AUGUST 27, 1935).

YOUR EARLY CONSIDERATION OF THIS MATTER WOULD BE GREATLY APPRECIATED.

IRRESPECTIVE OF WHAT APPROPRIATIONS MIGHT HAVE BEEN FOR CREDITING HAD THE FARM CREDIT ADMINISTRATION BEEN SUCCESSFUL IN SELLING THE PROPERTIES FOR CASH AT THE FORECLOSURE PROCEEDINGS, THE FACT REMAINS THAT THE PROPERTIES WERE NOT SO SOLD AND WHEN BID IN BY THE FARM SECURITY ADMINISTRATION THE TITLE THERETO VESTED IN THE UNITED STATES. WHEN DECLARED SURPLUS AND TURNED OVER TO THE PUBLIC BUILDINGS ADMINISTRATION, THEY BECAME SUBJECT TO DISPOSITION UNDER THE ACT OF AUGUST 27, 1935, 49 STAT. 885, AS AMENDED BY THE ACT OF JULY 18, 1940, 54 STAT. 764. THERE APPEARS TO BE NOTHING IN THAT ACT REQUIRING THAT THE FEDERAL AGENCY ORIGINALLY HOLDING THE PROPERTY SHOULD RECEIVE CREDIT OR BE REIMBURSED THEREFOR. THE ACT PERMITS AT LEAST FOUR DIFFERENT TREATMENTS OF THE PROPERTY RECEIVED BY THE PUBLIC BUILDINGS ADMINISTRATION:IT MAY BE RETAINED FOR OCCUPANCY BY SOME OTHER GOVERNMENT AGENCY, IT MAY BE LEASED TO PRIVATE PERSONS OR FIRMS PENDING SALE, IT MAY BE SOLD, OR IT MAY BE DEMOLISHED. SECTION 2 OF THE ACT FURTHER PROVIDES THAT IF REPAIRS OR ALTERATIONS ARE REQUIRED WHEN ASSIGNING SPACE TO OTHER FEDERAL AGENCIES, SUCH AGENCIES SHALL PAY FOR THE REPAIRS AND ALTERATIONS IN AN AMOUNT NOT IN EXCESS OF THE RENT WHICH THEY WOULD OTHERWISE HAVE BEEN REQUIRED TO PAY FOR SIMILAR SPACE. IF THE COST OF THE REPAIRS BE LESS THAN THE ESTIMATED RENT, THE BALANCE IS TO BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, NO PART THEREOF BEING REQUIRED TO BE PAID TO THE AGENCY WHICH DECLARED THE PROPERTY SURPLUS. THE ACT MAKES NO PROVISION FOR PAYMENT TO THE SURRENDERING AGENCY IF THE PROPERTY IS TO BE USED WITHOUT REPAIRS OR ALTERATIONS, IF IT BE DEMOLISHED, OR IF IT BE SOLD.

IN VIEW OF THE FOREGOING I HAVE TO ADVISE THAT THE PROCEEDS REALIZED FROM THE SALE OF THE PROPERTIES INVOLVED IN THESE CASES ARE NOT FOR DEPOSIT TO THE CREDIT OF ANY APPROPRIATION OR FUND OF THE FARM CREDIT ADMINISTRATION, OR FOR ITS ACCOUNT, BUT ARE FOR DEPOSIT AND COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS UNDER THE SYMBOL AND TITLE "805598 SALE OF LAND, PUBLIC BUILDINGS ADMINISTRATION.'