40 U.S.C. § 3116 — Interest as part of just compensation

Page 116 TITLE 40—PUBLIC BUILDINGS, PROPERTY, AND WORKS § 3115 ered by law to acquire the land described in the petition, declaring that the land is taken for the use of the Government. The declaration of tak- ing shall contain or have annexed to it— (1) a statement of the authority under which, and the public use for which, the land is taken; (2) a description of the land taken that is sufficient to identify the land; (3) a statement of the estate or interest in the land taken for public use; (4) a plan showing the land taken; and (5) a statement of the amount of money esti- mated by the acquiring authority to be just compensation for the land taken. (b) VESTING OF TITLE.—On filing the declara- tion of taking and depositing in the court, to the use of the persons entitled to the compensation, the amount of the estimated compensation stat- ed in the declaration— (1) title to the estate or interest specified in the declaration vests in the Government; (2) the land is condemned and taken for the use of the Government; and (3) the right to just compensation for the land vests in the persons entitled to the com- pensation. (c) COMPENSATION.— (1) DETERMINATION AND AWARD.—Compensa- tion shall be determined and awarded in the proceeding and established by judgment. The judgment shall include interest, in accordance with section 3116 of this title, on the amount finally awarded as the value of the property as of the date of taking and shall be awarded from that date to the date of payment. Inter- est shall not be allowed on as much of the compensation as has been paid into the court. Amounts paid into the court shall not be charged with commissions or poundage. (2) ORDER TO PAY.—On application of the par- ties in interest, the court may order that any part of the money deposited in the court be paid immediately for or on account of the compensation to be awarded in the proceeding. (3) DEFICIENCY JUDGMENT.—If the compensa- tion finally awarded is more than the amount of money received by any person entitled to compensation, the court shall enter judgment against the Government for the amount of the deficiency. (d) AUTHORITY OF COURT.—On the filing of a declaration of taking, the court— (1) may fix the time within which, and the terms on which, the parties in possession shall be required to surrender possession to the pe- titioner; and (2) may make just and equitable orders in re- spect of encumbrances, liens, rents, taxes, as- sessments, insurance, and other charges. (e) VESTING NOT PREVENTED OR DELAYED.—An appeal or a bond or undertaking given in a pro- ceeding does not prevent or delay the vesting of title to land in the Government. (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1145.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3114(a) ........ 40:258a (1st par.). Feb. 26, 1931, ch. 307, § 1, 46 Stat. 1421; Pub. L. 99–656, § 1(1), Nov. 14, 1986, 100 Stat. 3668. 3114(b) ........ 40:258a (2d par. 1st sentence words before 1st semi- colon). 3114(c)(1) .... 40:258a (2d par. 1st sentence words after 1st semi- colon, last sen- tence). 3114(c)(2), (3). 40:258a (3d par.). 3114(d) ........ 40:258a (last par.). 3114(e) ........ 40:258b. Feb. 26, 1931, ch. 307, § 2, 46 Stat. 1422. In subsection (a), before clause (1), the words ‘‘which has been or may be’’ are omitted as unnecessary. In subsection (b)(1), the words ‘‘said lands in fee sim- ple absolute, or such less’’ are omitted as unnecessary. In subsection (b)(2), the words ‘‘deemed to be’’ are omitted as unnecessary. § 3115. Irrevocable commitment of Federal Gov- ernment to pay ultimate award when fixed (a) REQUIREMENT FOR IRREVOCABLE COMMIT- MENT.—Action under section 3114 of this title ir- revocably committing the Federal Government to the payment of the ultimate award shall not be taken unless the head of the executive de- partment or agency or bureau of the Govern- ment empowered to acquire the land believes that the ultimate award probably will be within any limits Congress prescribes on the price to be paid. (b) AUTHORIZED PURPOSES OF EXPENDITURES AFTER IRREVOCABLE COMMITMENT MADE.—When the Government has taken or may take title to real property during a condemnation proceeding and in advance of final judgment in the pro- ceeding and has become irrevocably committed to pay the amount ultimately to be awarded as compensation, and the Attorney General be- lieves that title to the property has been vested in the Government or that all persons having an interest in the property have been made parties to the proceeding and will be bound by the final judgment, the Government may expend amounts appropriated for that purpose to demolish exist- ing structures on the property and to erect pub- lic buildings or public works on the property. (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1146.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3115(a) ........ 40:258c. Feb. 26, 1931, ch. 307, § 3, 46 Stat. 1422. 3115(b) ........ 40:258e. Feb. 26, 1931, ch. 307, § 5, 46 Stat. 1422; Pub. L. 91–393, § 4, Sept. 1, 1970, 84 Stat. 835. In subsection (b), the words ‘‘possession of’’ are omit- ted as unnecessary. § 3116. Interest as part of just compensation (a) CALCULATION.—The district court shall cal- culate interest required to be paid under this subchapter as follows: (1) PERIOD OF NOT MORE THAN ONE YEAR.— Where the period for which interest is owed is Page 117 TITLE 40—PUBLIC BUILDINGS, PROPERTY, AND WORKS § 3131 not more than one year, interest shall be cal- culated from the date of taking at an annual rate equal to the weekly average one-year con- stant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the calendar week preceding the date of taking. (2) PERIOD OF MORE THAN ONE YEAR.—Where the period for which interest is owed is more than one year, interest for the first year shall be calculated in accordance with paragraph (1) and interest for each additional year shall be calculated on the amount by which the award of compensation is more than the deposit re- ferred to in section 3114 of this title, plus ac- crued interest, at an annual rate equal to the weekly average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the calendar week preceding the beginning of each additional year. (b) DISTRIBUTION OF NOTICE OF RATES.—The Di- rector of the Administrative Office of the United States Courts shall distribute to all federal courts notice of the rates described in para- graphs (1) and (2) of subsection (a). (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1146.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3116(a) ........ 40:258e–1 (less last sentence). Feb. 26, 1931, ch. 307, § 6, as added Pub. L. 99–656, § 1(2), Nov. 14, 1986, 100 Stat. 3668; Pub. L. 106–554, § 1(a)(7) [§ 307(a)], Dec. 21, 2000, 114 Stat. 2763A–635. 3116(b) ........ 40:258e–1 (last sen- tence). § 3117. Exclusion of certain property by stipula- tion of Attorney General In any condemnation proceeding brought by or on behalf of the Federal Government, the Attor- ney General may stipulate or agree on behalf of the Government to exclude any part of the prop- erty, or any interest in the property, taken by or on behalf of the Government by a declaration of taking or otherwise. (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1147.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3117 ............ 40:258f. Oct. 21, 1942, ch. 618, 56 Stat. 797. The words ‘‘that may have been, or may be’’ are omitted as unnecessary. § 3118. Right of taking as addition to existing rights The right to take possession and title in ad- vance of final judgment in condemnation pro- ceedings as provided by section 3114 of this title is in addition to any right, power, or authority conferred by the laws of the United States or of a State, territory, or possession of the United States under which the proceeding may be con- ducted, and does not abrogate, limit, or modify that right, power, or authority. (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1147.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3118 ............ 40:258d. Feb. 26, 1931, ch. 307, § 4, 46 Stat. 1422. The words ‘‘State, territory, or possession of the United States’’ are substituted for ‘‘State or Territory’’ for consistency in the revised title and with other titles of the United States Code. SUBCHAPTER III—BONDS § 3131. Bonds of contractors of public buildings or works (a) DEFINITION.—In this subchapter, the term ‘‘contractor’’ means a person awarded a contract described in subsection (b). (b) TYPE OF BONDS REQUIRED.—Before any con- tract of more than $100,000 is awarded for the construction, alteration, or repair of any public building or public work of the Federal Govern- ment, a person must furnish to the Government the following bonds, which become binding when the contract is awarded: (1) PERFORMANCE BOND.—A performance bond with a surety satisfactory to the officer awarding the contract, and in an amount the officer considers adequate, for the protection of the Government. (2) PAYMENT BOND.—A payment bond with a surety satisfactory to the officer for the pro- tection of all persons supplying labor and ma- terial in carrying out the work provided for in the contract for the use of each person. The amount of the payment bond shall equal the total amount payable by the terms of the con- tract unless the officer awarding the contract determines, in a writing supported by specific findings, that a payment bond in that amount is impractical, in which case the contracting officer shall set the amount of the payment bond. The amount of the payment bond shall not be less than the amount of the perform- ance bond. (c) COVERAGE FOR TAXES IN PERFORMANCE BOND.— (1) IN GENERAL.—Every performance bond re- quired under this section specifically shall provide coverage for taxes the Government imposes which are collected, deducted, or withheld from wages the contractor pays in carrying out the contract with respect to which the bond is furnished. (2) NOTICE.—The Government shall give the surety on the bond written notice, with re- spect to any unpaid taxes attributable to any period, within 90 days after the date when the contractor files a return for the period, except that notice must be given no later than 180 days from the date when a return for the pe- riod was required to be filed under the Inter- nal Revenue Code of 1986 (26 U.S.C. 1 et seq.). (3) CIVIL ACTION.—The Government may not bring a civil action on the bond for the taxes— (A) unless notice is given as provided in this subsection; and (B) more than one year after the day on which notice is given.