Encumbrance of Possessory Interest as Loan Collateral

B-148736: Jul 25, 1978

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A decision was requested as to the legality of a proposed revision to the National Park Service's standard concession contract which would allow encumbrance of possessory interests in concession assets in order to borrow money to purchase concession operations. The contract language may be revised to allow new park concessions to encumber their possessory interest in order to provide collateral for loans used to purchase the concession operations.