522 Land development, etc*
Restriction*
Agreement provisions.
Use of r e n t a l funds •
Title acquisition.
Budget and Congr e s s i o n a l a p proval*
PUBLIC LAW 5 1 9 - J U L Y 22, 1954
[68
ST AT.
copartnership, corporation, or other public or private entity, to effectuate any of the purposes of this section; and is further authorized to bring about the development and improvement of any land purchased by the United States for postal purposes, including the demolition of obsolete and outmoded structures situate thereon, by providing for the construction thereon by others of such structures and facilities as shall be the subject of the applicable lease-purchase agreement. (d) The authority conferred on the Postmaster General by subsections (b) and (c) of this section to enter into lease-purchase agreements with respect to property owned by the Government on the date of the enactment of this Act, is hereby restricted to exclude from such authority any site which has been acquired pursuant to law, prior to the enactment of this Act, on which there has been constructed a building to be used for postal purposes and which is presently being used for such purposes. (e) Each such lease-purchase agreement shall include such provisions as the Postmaster General, in his discretion, shall deem to be in the best interest of the United States and appropriate to secure the performance of the obligations imposed upon the party or parties that shall enter into such agreement with the United States. No such agreement shall provide for any payment to be made by the United States in excess of the amount necessary, as determined by the Postmaster General, to ^ (1) amortize— (A) the cost of improvements to be constructed plus the fair market value, on the date of the agreement, of the site, if owned or acquired by the contractor, or (B) the fair market value, on the date of the agreement, of completed improvements together with the site thereof, or (C) a combination of the foregoing in the case of existing improvements to be remodeled by the contractor; and (2) provide a reasonable rate of interest on the outstanding principal as determined under (1) above, and (3) reimburse the contractor for the cost of any other obligations assumed by him under the contract, including (but not limited to) payment of taxes, costs of carrying appropriate insurance, and costs of repair and maintenance if so assumed by the contractor. (f) Funds available to the Post Office Department for the payment of rents are authorized to be utilized by the Postmaster General to make any payments becoming due from time to time from the United States in pursuance of lease-purchase agreements entered into under the authority of this title: Provided, That no such funds may be expended for acquisition of title to the property covered by any leasepurchase agreement prior to the expiration of the leasehold term specified therein (whether by exercise of option to purchase or otherwise) in the absence of specific appropriation of funds for such acquisition, which appropriations are hereby authorized. (g) No proposed lease-purchase agreement shall be executed under this section unless such agreement has been approved by the Director of the Bureau of the Budget, as evidenced by a written statement of such officer to the effect that the execution of such agreement is necessary and is in conformity with the policy of the President. No appropriations shall be made for lease-purchase projects which have not been approved by resolutions adopted by the Committees on Public Works of the Senate and House of Representatives, respectively, within three years after the date of enactment of this Act. For the purpose of securing consideration of said approval the Postmaster General
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