10 U.S.C. § 8475 — Acceptance of guarantees with gifts for

Page 3278 TITLE 10—ARMED FORCES § 8475 HISTORICAL AND REVISION NOTES—CONTINUED Revised section Source (U.S. Code) Source (Statutes at Large) 6974(b) ..... 34 U.S.C. 1119. Mar. 26, 1938, ch. 52, § 4, 52 Stat. 119. 6974(c) ..... 34 U.S.C. 1120. Mar. 26, 1938, ch. 52, § 5, 52 Stat. 119. Editorial Notes AMENDMENTS 2018—Pub. L. 115–232 renumbered section 6974 of this title as this section and substituted ‘‘section 8473’’ for ‘‘section 6973’’. 2000—Pub. L. 106–398 amended section catchline and text generally. Prior to amendment, section related to acceptance and administration of gifts, bequests, and loans for the benefit of the Naval Academy Museum. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. CONSOLIDATION OF NAVAL ACADEMY GENERAL GIFT FUND AND NAVAL ACADEMY MUSEUM FUND Pub. L. 106–398, § 1 [[div. A], title IX, § 942(b)], Oct. 30, 2000, 114 Stat. 1654, 1654A–241, provided that: ‘‘(1) The Secretary of the Navy shall transfer all amounts in the United States Naval Academy Museum Fund established by section 6974 [now 8474] of title 10, United States Code, to the gift fund maintained for the benefit and use of the United States Naval Academy under section 6973 [now 8473] of such title. Upon com- pleting the transfer, the Secretary shall close the United States Naval Academy Museum Fund. ‘‘(2) Amounts transferred under this subsection shall be merged with other amounts in the gift fund to which transferred and shall be available for the purposes for which amounts in that gift fund are available.’’ § 8475. Acceptance of guarantees with gifts for major projects (a) ACCEPTANCE AUTHORITY.—Subject to sub- section (c), the Secretary of the Navy may ac- cept from a donor or donors a qualified guar- antee for the completion of a major project for the benefit of the Naval Academy. (b) OBLIGATION AUTHORITY.—The amount of a qualified guarantee accepted under this section shall be considered as contract authority to pro- vide obligation authority for purposes of Federal fiscal and contractual requirements. Funds available for a project for which such a guar- antee has been accepted may be obligated and expended for the project without regard to whether the total amount of the funds and other resources available for the project (not taking into account the amount of the guarantee) is sufficient to pay for completion of the project. (c) NOTICE OF PROPOSED ACCEPTANCE.—The Secretary of the Navy may not accept a quali- fied guarantee under this section for the comple- tion of a major project until after the expiration of 30 days following the date upon which a re- port of the facts concerning the proposed guar- antee is submitted to Congress or, if earlier, the expiration of 14 days following the date on which a copy of the report is provided in an elec- tronic medium pursuant to section 480 of this title. (d) PROHIBITION ON COMMINGLING OF FUNDS.— The Secretary of the Navy may not enter into any contract or other transaction involving the use of a qualified guarantee and appropriated funds in the same contract or transaction. (e) DEFINITIONS.—In this section: (1) MAJOR PROJECT.—The term ‘‘major project’’ means a project for the purchase or other procurement of real or personal prop- erty, or for the construction, renovation, or repair of real or personal property, the total cost of which is, or is estimated to be, at least $1,000,000. (2) QUALIFIED GUARANTEE.—The term ‘‘quali- fied guarantee’’, with respect to a major project, means a guarantee that— (A) is made by one or more persons in con- nection with a donation, specifically for the project, of a total amount in cash or securi- ties that, as determined by the Secretary of the Navy, is sufficient to defray a substan- tial portion of the total cost of the project; (B) is made to facilitate or expedite the completion of the project in reasonable an- ticipation that other donors will contribute sufficient funds or other resources in amounts sufficient to pay for completion of the project; (C) is set forth as a written agreement that provides for the donor to furnish in cash or securities, in addition to the donor’s other gift or gifts for the project, any additional amount that may become necessary for pay- ing the cost of completing the project by reason of a failure to obtain from other do- nors or sources funds or other resources in amounts sufficient to pay the cost of com- pleting the project; and (D) is accompanied by— (i) an irrevocable and unconditional standby letter of credit for the benefit of the Naval Academy that is in the amount of the guarantee and is issued by a major United States commercial bank; or (ii) a qualified account control agree- ment. (3) QUALIFIED ACCOUNT CONTROL AGREE- MENT.—The term ‘‘qualified account control agreement’’, with respect to a guarantee of a donor, means an agreement among the donor, the Secretary of the Navy, and a major United States investment management firm that— (A) ensures the availability of sufficient funds or other financial resources to pay the amount guaranteed during the period of the guarantee; (B) provides for the perfection of a secu- rity interest in the assets of the account for the United States for the benefit of the Naval Academy with the highest priority available for liens and security interests under applicable law; (C) requires the donor to maintain in an account with the investment management firm assets having a total value that is not less than 130 percent of the amount guaran- teed; and (D) requires the investment management firm, at any time that the value of the ac- count is less than the value required to be maintained under subparagraph (C), to liq- Page 3279 TITLE 10—ARMED FORCES § 8477 uidate any noncash assets in the account and reinvest the proceeds in Treasury bills issued under section 3104 of title 31. (4) MAJOR UNITED STATES COMMERCIAL BANK.—The term ‘‘major United States com- mercial bank’’ means a commercial bank that— (A) is an insured bank (as defined in sec- tion 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)); (B) is headquartered in the United States; and (C) has net assets in a total amount con- sidered by the Secretary of the Navy to qual- ify the bank as a major bank. (5) MAJOR UNITED STATES INVESTMENT MAN- AGEMENT FIRM.—The term ‘‘major United States investment management firm’’ means any broker, dealer, investment adviser, or pro- vider of investment supervisory services (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c) or section 202 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2)) or a major United States commercial bank that— (A) is headquartered in the United States; and (B) holds for the account of others invest- ment assets in a total amount considered by the Secretary of the Navy to qualify the firm as a major investment management firm. (Added Pub. L. 106–65, div. B, title XXVIII, § 2871(b)(1), Oct. 5, 1999, 113 Stat. 873, § 6975; amended Pub. L. 106–398, § 1 [[div. A], title X, § 1087(a)(17)], Oct. 30, 2000, 114 Stat. 1654, 1654A–291; Pub. L. 108–136, div. A, title X, § 1031(a)(56), Nov. 24, 2003, 117 Stat. 1603; renum- bered § 8475, Pub. L. 115–232, div. A, title VIII, § 807(c)(1), Aug. 13, 2018, 132 Stat. 1836.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–232 renumbered section 6975 of this title as this section. 2003—Subsec. (c). Pub. L. 108–136 inserted before pe- riod at end ‘‘or, if earlier, the expiration of 14 days fol- lowing the date on which a copy of the report is pro- vided in an electronic medium pursuant to section 480 of this title’’. 2000—Subsec. (e)(5). Pub. L. 106–398 inserted a closing parenthesis after ‘‘80b–2)’’ in introductory provisions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. § 8476. Operation of Naval Academy dairy farm (a) DISCRETION REGARDING CONTINUED OPER- ATION.—(1) Subject to paragraph (2), the Sec- retary of the Navy may terminate or reduce the dairy or other operations conducted at the Naval Academy dairy farm located in Gambrills, Maryland. (2) Notwithstanding the termination or reduc- tion of operations at the Naval Academy dairy farm under paragraph (1), the real property con- taining the dairy farm (consisting of approxi- mately 875 acres)— (A) may not be declared to be excess real property to the needs of the Navy or trans- ferred or otherwise disposed of by the Navy or any Federal agency; and (B) shall be maintained in its rural and agri- cultural nature. (b) LEASE AUTHORITY.—(1) Subject to para- graph (2), to the extent that the termination or reduction of operations at the Naval Academy dairy farm permit, the Secretary of the Navy may lease the real property containing the dairy farm, and any improvements and personal prop- erty thereon, to such persons and under such terms as the Secretary considers appropriate. In leasing any of the property, the Secretary may give a preference to persons who will continue dairy operations on the property. (2) Any lease of property at the Naval Acad- emy dairy farm shall be subject to a condition that the lessee maintain the rural and agricul- tural nature of the leased property. (c) LEASE PROCEEDS.—All money received from a lease entered into under subsection (b) shall be retained by the Superintendent of the Naval Academy and shall be available to cover ex- penses related to the property described in sub- section (a), including reimbursing non- appropriated fund instrumentalities of the Naval Academy. (d) EFFECT OF OTHER LAWS.—Nothing in sec- tion 8471 of this title shall be construed to re- quire the Secretary of the Navy or the Super- intendent of the Naval Academy to operate a dairy farm for the Naval Academy in Gambrills, Maryland, or any other location. (Added Pub. L. 105–85, div. B, title XXVIII, § 2871(a)(1), Nov. 18, 1997, 111 Stat. 2014, § 6976; amended Pub. L. 106–65, div. B, title XXVIII, § 2814, Oct. 5, 1999, 113 Stat. 851; renumbered § 8476 and amended Pub. L. 115–232, div. A, title VIII, §§ 807(c)(1), 809(a), Aug. 13, 2018, 132 Stat. 1836, 1840.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–232, § 807(c)(1), renumbered section 6976 of this title as this section. Subsec. (d). Pub. L. 115–232, § 809(a), substituted ‘‘sec- tion 8471’’ for ‘‘section 6971’’. 1999—Subsecs. (c), (d). Pub. L. 106–65 added subsec. (c) and redesignated former subsec. (c) as (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. § 8477. Grants for faculty research for scientific, literary, and educational purposes: accept- ance; authorized grantees (a) ACCEPTANCE OF RESEARCH GRANTS.—The Secretary of the Navy may authorize the Super- intendent of the Academy to accept qualifying