1. (1) The SASP will require each eligible donee, as a condition of eligibility, to file with the agency the appropriate application, a certification of eligibility and an agreement to abide by certain terms and conditions as set forth by the GSA. Each form must be signed by the chief executive officer of the donee, agreeing to these requirements prior to the donation of any surplus property.
2. (2) In addition, the certification of eligibility and terms and conditions will be printed on the reverse side of each, executed to cover each donation transaction and signed by an authorized representative of the donee (forms CS 403 and CS 404).

3. (3) The following periods of restriction are established by the SASP on all items of property with a unit acquisition cost of $5,000 or more, and on all passenger vehicles:

   1. (i) passenger vehicles - 18 months from the date the property is placed in use;
   2. (ii) items with a unit acquisition cost of $5,000 or more - 18 months from the date the property is placed in use;
   3. (iii) aircraft (except combat type) and vessels (50 feet or more in length) - 60 months from the date the property is placed in use. Donation of noncombat aircraft and vessels of 50' or more in length shall be subject to the requirements of a conditional transfer document (CTD);
   4. (iv) aircraft (combat type) restricted in perpetuity. Donation of combat-type aircraft shall be subject to the requirements of a conditional transfer document (form CS 408).
4. (4) The SASP will impose or reinforce any and all conditions involving special handling or use limitations set by the GSA due to the characteristics of the property regardless of the unit acquisition cost.
5. (5) The SASP, at its discretion, and when considered appropriate, may impose additional terms, conditions, reservations and restrictions as it deems reasonable on the use of donable property beyond what GSA and the FMR requires.

6. (6) The SASP will impose on all donees the statutory requirement that all items donated must be placed into use or, if the property ceases to be used for a full year and the property is still usable, the property must be returned to the SASP or otherwise transferred as the SASP shall direct.

   (b)

7. (1) The SASP must seek GSA’s approval to amend, modify, or grant releases of, any term, condition, reservation or restriction it has imposed on donated items of personal property which is mandated by GSA or the FMR. The SASP may amend, modify, or grant release of, any item, any “additional” conditions, reservations or restrictions which the SASP has imposed above and beyond what GSA or the FMR requires.

   (c) Restrictions on property.

   The SASP may amend or grant releases, during the period of restriction, from any “additional” SASP imposed terms, conditions, reservations or restrictions the SASP has imposed on donated property, in accordance with the following standards, provided that the conditions pertinent to each situation have been affirmatively demonstrated to the satisfaction of the SASP, and have been made a matter of public record.

8. (1) Secondary utilization or cannibalization. Secondary utilization or cannibalization may be accomplished, provided that:

   1. (i) disassembly of the item, for use of its component parts for secondary use or repair and maintenance of a similar item, has greater potential benefit than utilization of the item in its existing form;
   2. (ii) components with a single item acquisition cost of $5,000 or more will remain under the restrictions imposed by the transfer document. Components with a single item acquisition cost of less than $5,000 will be released from the restrictions imposed by the transfer document. All components, regardless of acquisition cost will continue to be used or be otherwise disposed of in accordance with applicable law and regulations;
   3. (iii) a written report of such action is made by the donee to the SASP, including a list of all components, resulting from the secondary utilization or cannibalization.

9. (2) Trade-in of an item on a similar replacement. An item of donated personal property may be traded in or used as whole or partial payment for another like item of property, provided:

   1. (i) when the request is made, the item being traded in is in compliance and the donee has not violated the terms, conditions, reservations or restrictions placed on it and it is still in a restricted period;
   2. (ii) the item being traded in has been used by the donee for eligible purposes; or
   3. (iii) the item acquired is made subject to the period of restriction remaining on the item traded in.
10. (3) Abrogation. Except in cases involving donee noncompliance with the terms and conditions of donated property, abrogation of additional restrictions imposed by the SASP may be authorized by the SASP. For any abrogation based upon a donee request to sell the donated Federal property, the SASP may allow some share of the proceeds to be retained by the donee if proper use of the Federal property occurred within the federally required continuous use time period of one year.
11. (4) Revision of the acquisition cost. The acquisition cost of an item may be revised, provided that the request therefore is made in writing by donee, and it is determined by the SASP, with the approval of GSA, that the listed acquisition cost is unrealistic in view of its research and development costs, its incompleteness due to missing parts, or its generally deteriorated condition.
12. (5) Destruction and abandonment. A donated item of personal property may be destroyed or abandoned by a donee when it is determined that the item has no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale. The determination shall be based on a finding made in writing by the SASP, with the approval of GSA, and the SASP shall prescribe the means and methods whereby the property shall be destroyed or abandoned.

13. (6) Enforcement of compliance. The enforcement of the terms, conditions, reservations and restrictions imposed by the SASP on donated property, or the remedy of breaches of such terms and conditions, may be satisfied:

    1. (i) when payment is made to the SASP, for deposit in the U.S. Treasury, of any and all fair rental values due and payable for any unauthorized use of the donated property;
    2. (ii) when payment is made to the SASP, for deposit in the U.S. Treasury, of either the fair market value or gross proceeds of sale, whichever is in the best interest of the State, for the unauthorized disposal or destruction of donated property;
    3. (iii) when donated property is recovered by the SASP and custody, accountability and distribution of such reverted property are the responsibilities of the SASP; or
    4. (iv) a letter of corrective action is submitted to the SASP, outlining improved accountability and use procedures.
14. (7) Reduction in the period of restriction. Provided an item of donated property is not in compliance status, a reduction in the period of restriction may be authorized when a revised standard covering the period of restriction is promulgated by the SASP.

15. (8) Limitations. These provisions are not applicable when:

    1. (i) donated property is recovered by the SASP and custody, accountability and distribution of such reverted property are the responsibilities of the State with respect to donated military-type aircraft or other items or property on which GSA has special handling conditions or use limitations;
    2. (ii) property which was not placed in use within one year of its donation date, and continuously used for one year from the initial use date, except with the respect to secondary use or cannibalization as provided in FMR 102-37.470.

(a)