which is determined to be a part of the finance charge under the Truth in Lending Act, title I, Public Law 90-321, and regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System, or which is determined to be prepaid expenses:

(i) Legal, closing, and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings of plats, and charges incident to recordation.

(ii) Lenders, FHA, or VA appraisal fee.

(iii) FHA application fee. (iv) Certification of

structural

soundness when required by lender, FHA, or VA.

(v) Credit report.

(vi) Title policy, certificate of title, or abstract of title.

(vii) Escrow agent's fee.

(viii) State revenue stamps, or sale or transfer taxes.

(d) The full amount of the payment must be applied as follows:

(1) The amount allowed for the down payment must be applied to the purchase price.

(2) The amount allowed for incidental costs must be applied to the incidental costs.

(3) The down payment and incidental costs must be shown separately on the closing statement.

$742.509 Mobile home site.

If real property is acquired on which a displaced person leases and occupies a site for a mobile home, the following reasonable costs as determined by the displacing agency are allowable and payable in a lump sum:

(a) Moving the mobile home to a replacement site located not more than 50 miles from the acquired site.

(b) Detaching and reattaching fixtures and appurtenances, where applicable.

Subpart F-Relocation Assistance Advisory Services

§ 742.601 Policy.

Whenever the acquisition of real property for a Federal or Federal financially-assisted program or project will result in the displacement of any

person, the agency head shall provide a relocation assistance advisory program for displaced persons. If it is determined that any person occupying property immediately adjacent to the real property acquired is caused substantial economic injury because of the acquisition, the agency head shall offer such person relocation advisory services.

§ 742.602 Cooperation with other Federal and State agencies.

(a) When more than one agency, departmental or otherwise, is administering a relocation assistance advisory program which may be of assistance in the community or area to persons displaced under other programs, the agency head shall offer to cooperate to the maximum extent feasible with the other Federal or State agency causing displacements to assure that all displaced persons receive the maximum assistance available to them.

(b) The agency head shall consult with the appropriate Housing and Urban Development Regional/Area Office concerning the availability of housing and inform such office as to projects which will cause displacement. The agency head shall also consult with appropriate local officials concerning any proposed project in a community, consistent with the procedural requirements of Office of Management and Budget Circular A-95 (Revised).

(c) The agency head may, by contract or otherwise, secure relocation assistance advisory services from the central relocation agency, if available, in the area, or any other appropriate Federal, State, or local governmental agency or from any person or organization.

[38 FR 8155, Mar. 29, 1973]

§ 742.603 Advisory services.

Each relocation assistance advisory program shall include such measures, facilities, or services as may be necessary or appropriate in order to:

(a) Determine the need, if any, of displaced persons for relocation assistance.

(b) Provide current and continuing information on the availability, prices,

and rentals of comparable decent, safe, and sanitary sale and rental housing and of comparable commercial properties and locations for displaced businesses and farm operations.

(c) Assure that, within a reasonable period of time prior to displacement, replacement dwellings will be available.

(d) Assist a displaced person displaced from his business or farm operation in obtaining and becoming established in a suitable replacement location.

(e) Supply information concerning housing programs, disaster loan programs, and other Federal or State programs offering assistance to displaced persons.

(f) Provide other advisory services to displaced persons in order to minimize hardships to such persons in adjusting to relocation.

(g) Advise displaced persons that they should notify the agency head before they move, and

(h) At time of initiation of negotiations for acquisition inform the parties in interest of the advisory service to which they may be entitled.

Subpart G-Real Property Acquisition

§ 742.701 Acquisition by agreement.

(a) Every reasonable effort will be made to: (1) Acquire real property by agreement with owners based on negotiations, (2) assure consistent treatment of owners, and (3) accomplish negotiations expeditiously. In no event shall negotiations be deferred nor any other action coercive in nature taken in order to compel an agreement.

§ 742.702 Appraisal.

(a) Prior to initiation of negotiations, an appraisal of the fair market value of the real property interest to be acquired will be made by a qualified appraiser.

(b) The owner or his designated representative will be given a reasonable opportunity to accompany the appraiser during his inspection of the property.

(c) Any decrease or increase in the fair market value of the property prior to the date of the appraisal which is

caused by the public improvement for which the property is acquired or by the likelihood that the property would be acquired for such improvement, other than due to physical deterioration within the reasonable control of the owner, will be disregarded in appraising the property.

(d) Where appropriate the estimate of the fair market value of the property to be acquired and the estimate of damages or offsetting benefits to the remaining property will be separately stated.

§ 742.703 Establishing just compensation.

(a) Prior to negotiations the agency head shall establish an amount believed to be just compensation which in no event shall be less than the amount of the approved appraisal.

(b) If the acquisition of only part of a property would leave its owner with an uneconomic remnant, the agency head shall offer to acquire the entire property.

§ 742.704 Initiation of negotiations.

(a) When the just compensation has been established, a prompt offer will be made to acquire the real property for the full amount of the just compensation so established.

(b) When the offer is made, the owner of the real property will be provided with a written statement of (1) identification of the real property and the estate or interest therein to be acquired including the buildings, structures and other improvements considered to be a part of the real property, (2) the amount of the estimated just compensation as determined by the acquiring agency and a summary statement of the basis therefor, and (3) if only a portion of the property is to be acquired, a separate statement of the estimated just compensation for the real property interest to be acquired and, where appropriate, damages and benefits to the remaining real property.

(c) The offer of just compensation does not preclude further negotiations with respect to the purchase price.

(d) Tenants occupying the property shall be advised when negotiations for the property are initiated with the owner thereof.

(e) Contracts or options to purchase real property shall not include any payments for relocation costs or any reference to such payments.

§ 742.705 Condemnation.

(a) The time of condemnation will neither be advanced, nor negotiations, condemnation and the deposit of funds in court be deferred, nor any other action coercive in nature taken in order to compel an agreement on price.

(b) If real property is to be acquired by condemnation, proceedings will be instituted promptly. No action will be taken intentionally which will make it necessary for an owner to institute legal proceedings to prove the taking of his real property.

(c) If the final judgment of the court in a condemnation case is that the acquiring agency cannot acquire the real property by condemnation, or if the proceeding in condemnation is abandoned by the acquiring agency, the acquiring agency must pay the owner of the property such sum as will reimburse the owner for his reasonable costs, disbursements, and expenses, including reasonable attorney, appraisal and engineering fees actually incurred because of the condemnation proceedings. If these costs are not covered by a court order, reimbursement shall nevertheless be made by the agency head.

§ 742.706 Expenses incidental to transfer of title.

As soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award in a condemnation proceeding to acquire real property, the owner will be reimbursed, to the extent the head of the agency determines fair and reasonable, for expenses the owner necessarily incurred for:

(a) Recording fees, transfer taxes, and similar expenses incident to conveying the real property to the acquiring agency,

(b) Penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering such real property, and

(c) The pro rata portion of real property taxes paid which are allocable to a period subsequent to the date of vesting title in the acquiring agency, or the effective date of possession of such real property by the acquiring agency, whichever is earlier, to the extent payable under State law in an acquisition of real property by the United States.

§ 742.707 Improvements owned by tenants. (a) Whenever any interest in real property is acquired, the agency head will acquire at least an equal interest in all buildings, structures, or other improvements located upon the real property which such acquiring agency requires to be removed from the real property, or which the acquiring agency determines will be adversely affected by the use to which such real property will be put.

(b) The following will apply in determining the just compensation for any such buildings, structures, or other improvements: (1) They will be deemed to be part of the real property to be acquired, notwithstanding the right or obligation of the tenant as against the owner of any other interest in the real property to remove them at the expiration of his term, and (2) the fair market value which such structures, buildings, or other improvements contribute to the fair market value of the real property to be acquired, or the fair market value of such buildings, structures, or other improvements for removal from the real property, whichever is greater, will be paid the tenant therefor, provided the tenant shall assign, transfer and release to the acquiring agency all his rights, title and interest in and to such improvements.

(c) Payments under this § 742.707 will not be made unless the owner of the land involved disclaims all interest in such buildings, structures, or other improvements of the tenant. Nor shall such payments be made which result in duplication of any payments otherwise authorized by law.

(d) The tenant may reject payment under this § 742.707 and obtain payment for the buildings, structures, or other improvements in accordance with any other applicable law.

§ 742.708 Lease to former owner or occupant.

If an owner or tenant is permitted to occupy the real property acquired on a rental basis for a short term, or for a period subject to termination by the acquiring agency on short notice, the amount of rent required will not exceed the fair rental value of the property to a short-term occupier.

§ 742.709 Requirement to move.

(a) The construction or development of a project will be so scheduled that, to the greatest extent practicable, no person lawfully occupying real property will be required to move from a dwelling (assuming a replacement dwelling will be available), or to move his business or farm operation, without at least 90 days' written notice prior to the date on which such move is required. A notice of less than 90 days may be given only in an emergency or other extraordinary situations. When it is proposed to give an advance notice of less than 90 days the prior approval of the agency head will be obtained.

(b) No owner will be required to surrender possession of real property before he has been paid the agreed purchase price or a deposit has been made with the court for the benefit of the owner in an amount not less than the approved appraisal of the real property being acquired.

Stat. 832) as amended, 22 U.S.C. 1750 et seq., and Act of Sept. 4, 1961 (Public Law 87-195, 75 Stat. 424), 22 U.S.C. 2151-2406 (2351, 2356).

SOURCE: 24 FR 10715, Dec. 25, 1959, unless otherwise noted.

§ 744.1 Purpose.

This part implements Part 264 of this title and the Technical Property Interchange Agreements between the United States and foreign governments which agreements are designed to facilitate the interchange of patent rights and technical information for defense purposes.

[26 FR 12217, Dec. 21, 1961]

§ 744.2 Scope.

This part applies to all Navy activities and personnel engaged in any interchange for defense purposes between the United States Government and foreign governments under the Mutual Security Act of 1954, as amended (22 U.S.C. 1750 et seq.) involving technical information and associated patent and proprietary rights. The policies prescribed in this part apply to unclassified as well as classified information owned by the United States Government or privately owned. This part does not apply to patents, patent applications and technical information in the field of atomic energy.

8744.3 Background.

(a) Pursuant to the provisions of the Mutual Security Act of 1954, as amended, and of predecessor legislation superseded by that Act, the United States has entered into agreements for the Interchange of Patent Rights and Technical Information to further the common defense of the United States and friendly nations. Agreements are now in effect with Australia, Belgium, Denmark, France, the Federal Republic of Germany, Greece, Italy, Japan, the Netherlands, Norway, Portugal, Spain, Turkey, and the United Kingdom. These agreements, among other things, are intended to facilitate the interchange of technical information by:

(1) Recognizing the rights of owners of such technical information dis

closed by the United States to foreign governments;

(2) Assuring owners that foreign governments will treat such technical information as disclosed in confidence and that their rights will not be prejudiced;

(3) Recognizing the right of owners to receive compensation if damage to the owners results from an unauthorized disclosure or use of such information; and

(4) Providing that each government is entitled to use for defense purposes without cost any invention which the other government (including government corporations) owns or to which it has the right to grant a license to use, except to the extent that there may be liability to any private owner of an interest in the invention.

as

(b) The Mutual Security Act of 1954

or

amended permits among other things the supply of "services" to eligible nations and international organizations. "Services" are defined in the Act as including any service, repair, training of personnel, or technical or other assistance or information necessary to effectuate the purposes of the Mutual Security Program. The Act also provides a legal remedy for owners of inventions or technical information for unauthorized use of inventions damage resulting from disclosure of information by reason of acts of the United States or its officers or employees in connection with the furtherance of the purposes of the Act and authorizes settlement and compromise of claims prior to suit against the United States. The Act and the Technical Interchange agreements further provide that commercial relationships are to be used whenever appropriate and to the maximum extent feasible for the exchange of technical information known or believed to be privately owned in order to encourage the participation of private enterprise in the Mutual Security Program, to relieve the Department of Defense of administrative burdens and to reduce the costs to the United States of such interchanges unless the use of commercial relationships might impair the defense program or violate security requirements.

(c) Technical information that is privately owned is considered for the purpose of this part as information originated by or peculiarly within the knowledge of the owner thereof and those in privity with him, which is not available to the public and is subject to protection as property under recognized legal principles.

[24 FR 10715, Dec. 25, 1959, as amended at 26 FR 12217, Dec. 21, 1961]

§ 744.4 Policy.

It is the policy of the Department of the Navy to encourage and facilitate the international interchange of patent rights and technical information to further the common defense of the United States and friendly nations. In carrying out this policy classified military information shall be released only through Government channels and only when consistent with the National Disclosure Policy, or when approved as an exception to that policy. Technical information which is known or believed to be privately owned shall normally be released through the medium of existing commercial relationships or commercial relationships to be established except that use of government channels is authroized for releases permitted under §§ 744.5 and 744.6.

§744.5 Release procedures.

(a) Technical information which is wholly owned by the United States Government may be released to foreign governments when consistent with the National Disclosure Policy, or when approved as an exception to that policy.

(b) Technical information which is known or believed to be privately owned may be released to foreign governments if any one of the following conditions is met:

(1) The owner expressly consents to the proposed release;

(2) The United States, by contract or otherwise, has acquired or is entitled to acquire, the information under circumstances which permit the proposed release; or

(3) The Secretary of the Navy or his designee determines, under the au