12 USC 2219a - Right of first refusal

Within 15 days after an institution of the System first elects to sell acquired real estate, or any portion of such real estate, the institution shall notify the previous owner by certified mail of the owner’s right—

(A)

to purchase the property at the appraised fair market value of the property, as established by an accredited appraiser; or

(B)

to offer to purchase the property at a price less than the appraised value.

(2)

Eligibility to purchase

(3)

Mandatory sale

(4)

Permissive sale

(5)

Rejection of offer of previous owner

(A)

Duties of institution

An institution of the System that rejects an offer from the previous owner to purchase the property at a price less than the appraised value may not sell the property to any other person—

(i)

at a price equal to, or less than, that offered by the previous owner; or

(ii)

on different terms and conditions than those that were extended to the previous owner,

without first affording the previous owner an opportunity to purchase the property at such price or under such terms and conditions.

(B)

Notice

(c)

Application of right of first refusal to leasing of property

(1)

Election to lease and notification

Within 15 days after an institution of the System first elects to lease acquired real estate, or any portion of such real estate, the institution shall notify the previous owner by certified mail of the owner’s right—

(A)

to lease the property at a rate equivalent to the appraised rental value of the property, as established by an accredited appraiser; or

(B)

to offer to lease the property at a rate that is less than the appraised rental value of the property.

(2)

Eligibility to lease

(3)

Mandatory lease

An institution of the System receiving an offer from the previous owner to lease the property at a rate equivalent to the appraised rental value of the property shall, within 15 days after the receipt of such offer, accept such offer and lease the property to the previous owner unless the institution determines that the previous owner—

(A)

does not have the resources available to conduct a successful farming or ranching operation; or

(B)

cannot meet all of the payments, terms, and conditions of such lease.

(4)

Permissive lease

(5)

Notice to previous owner

(6)

Rejection of offer of previous owner

(A)

Duties of institution

An institution of the System rejecting an offer from the previous owner to lease the property at a rate less than the appraised rental value of the property may not lease the property to any other person—

(i)

at a rate equal to or less than that offered by the previous owner; or

(ii)

on different terms and conditions than those that were extended to the previous owner,

without first affording the previous owner an opportunity to lease the property at such rate or under such terms and conditions.

(B)

Notice

(d)

Public offerings

(1)

Notification of previous owner

(2)

Priority

(3)

Nondiscrimination

(e)

Term or condition

(f)

Financing

(g)

Mailing of notice

(h)

State laws

(i)

Applicability

(Pub. L. 92–181, title IV, § 4.36, as added Pub. L. 99–205, title III, § 306, Dec. 23, 1985, 99 Stat. 1709; amended Pub. L. 100–233, title I, § 108, Jan. 6, 1988, 101 Stat. 1582; Pub. L. 100–399, title I, § 104, Aug. 17, 1988, 102 Stat. 990.)

cite as: 12 USC 2219a

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