
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 40USC462]

 
             TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
 
                   CHAPTER 9--NON-FEDERAL PUBLIC WORKS
 
                 SUBCHAPTER II--URBAN AND RURAL PLANNING
 
Sec. 462. Reserve of planned public works


(a) Advances for feasibility studies, surveys, designs, plans, etc.

    In order (1) to encourage municipalities and other public agencies 
and Indian tribes to maintain at all times a current and adequate 
reserve of planned public works the construction of which can rapidly be 
commenced, particularly when the national or local economic situation 
makes such action desirable, and (2) to help attain maximum economy and 
efficiency in the planning and construction of public works, the 
Secretary is authorized to make advances to public agencies and Indian 
tribes (notwithstanding the provisions of section 3324(a) and (b) of 
title 31) to aid in financing the cost of feasibility studies, 
engineering and architectural surveys, designs, plans, working drawings, 
specifications, or other action preliminary to and in preparation for 
the construction of public works, including, in the case of public works 
to be constructed in connection with the development of a medical 
center, a general plan for the development of such center: Provided, 
That the making of advances hereunder shall not in any way commit the 
Congress to appropriate funds to assist in financing the construction of 
any public works so planned: And provided further, That advances 
outstanding to public agencies and Indian tribes in any one State shall 
at no time exceed 12\1/2\ per centum of the aggregate then authorized to 
be appropriated to the revolving fund established pursuant to subsection 
(e) of this section.

(b) Requisites for advances

    No advance shall be made hereunder with respect to any individual 
project, including a regional or metropolitan or other area-wide 
project, unless (1) it is planned to be constructed within or over a 
reasonable period of time considering the nature of the project, (2) it 
conforms to an overall State, local, or regional plan approved by a 
competent State, local, or regional authority, and (3) the public agency 
or Indian tribe formally contracts with the Federal Government to 
complete the plan preparation promptly and to repay such advance or part 
thereof when due.

(c) Repealed. Pub. L. 100-242, title V, Sec. 524(1), Feb. 5, 1988, 101 
        Stat. 1939

(d) Rules and regulations

    The Secretary is authorized to prescribe rules and regulations to 
carry out the purpose of this section.

(e) Revolving fund

    In order to provide moneys for advances in accordance with this 
section, the Secretary is hereby authorized to establish a revolving 
fund which shall comprise (1) all moneys heretofore or hereafter 
appropriated pursuant to this section, together with all repayments and 
other receipts heretofore or hereafter received in connection with 
advances made under this section, and (2) all repayments and other 
receipts received after June 30, 1964, and all advances (and claims in 
connection with advances) outstanding as of such date, under title V of 
the War Mobilization and Reconversion Act of 1944 (58 Stat. 791) [50 
App. U.S.C. 1671] and the Act of October 13, 1949 (63 Stat. 841-2) [40 
U.S.C. 451 et seq.]. There are authorized to be appropriated to such 
revolving fund, in addition to amounts authorized to be appropriated for 
the purposes of this section prior to September 2, 1964, such sums not 
to exceed $70,000,000, as may be necessary to carry out the purposes of 
this section.

(f) Surveys of public works planning

    The Secretary is authorized to use during any fiscal year not to 
exceed $100,000 of the moneys in the revolving fund (established under 
subsection (e) of this section) to conduct surveys of the status and 
current volume of State and local public works planning and surveys of 
estimated requirements for State and local public works: Provided, That 
the Secretary, in conducting any such survey, may utilize or act through 
any Federal department or agency with its consent.

(g) Forgiveness of outstanding advances; cancellation of contracts 
        respecting repayment of advances

    Effective upon February 5, 1988, and in accordance with such 
accounting and other procedures as the Secretary may prescribe, each 
advance made by the Secretary under this section that has any principal 
amount outstanding shall be forgiven. The terms and conditions of any 
contract, or any amendment to a contract, for such advance with respect 
to any promise to repay the advance shall be canceled.

(Aug. 2, 1954, ch. 649, title VII, Sec. 702, 68 Stat. 641; Aug. 11, 
1955, ch. 783, title I, Sec. 112, 69 Stat. 641; Pub. L. 86-372, title 
VIII, Sec. 801, Sept. 23, 1959, 73 Stat. 686; Pub. L. 87-70, title V, 
Sec. 502, June 30, 1961, 75 Stat. 175; Pub. L. 87-658, Sec. 6, Sept. 14, 
1962, 76 Stat. 544; Pub. L. 88-560, title VI, Sec. 602, Sept. 2, 1964, 
78 Stat. 799; Pub. L. 89-117, title XI, Sec. 1104, Aug. 10, 1965, 79 
Stat. 503; Pub. L. 90-19, Sec. 10(a), May 25, 1967, 81 Stat. 22; Pub. L. 
90-448, title VI, Sec. 607, Aug. 1, 1968, 82 Stat. 534; Pub. L. 100-242, 
title V, Sec. 524, Feb. 5, 1988, 101 Stat. 1939.)

                       References in Text

    The War Mobilization and Reconversion Act of 1944, referred to in 
subsec. (e), is act Oct. 3, 1944, ch. 480, 58 Stat. 785, which was 
classified to section 1651 et seq. of Title 50, Appendix, War and 
National Defense, and which has been omitted from the Code. Title V of 
the War Mobilization and Reconversion Act of 1944 was classified to 
section 1671 of Title 50, Appendix. For complete classification of this 
Act to the Code, see Tables.
    Act of October 13, 1949, referred to in subsec. (e), is act Oct. 13, 
1949, ch. 685, 63 Stat. 841, as amended, which was classified generally 
to subchapter I (Sec. 451 et seq.) of chapter 9 of this title, and which 
has been omitted from the Code. For complete classification of this Act 
to the Code, see Tables.

                          Codification

    In subsec. (a), ``section 3324(a) and (b) of title 31'' substituted 
for ``section 3648 of the Revised Statutes, as amended [31 U.S.C. 529]'' 
on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 
1067, the first section of which enacted Title 31, Money and Finance.


                               Amendments

    1988--Subsec. (c). Pub. L. 100-242, Sec. 524(1), struck out subsec. 
(c) which read as follows: ``Advances under this section to any public 
agency or Indian tribe shall be repaid without interest by such agency 
or tribe when the construction of the public works is undertaken or 
started: Provided, That in the event repayment is not made promptly such 
unpaid sum shall bear interest at the rate of 4 per centum per annum 
from the date of the Government's demand for repayment to the date of 
payment thereof by the public agency or Indian tribe.''
    Subsec. (g). Pub. L. 100-242, Sec. 524(2), amended subsec. (g) 
generally. Prior to amendment, subsec. (g) read as follows: 
``Notwithstanding any other provision of this section, no advance made 
under this section for the planning of any public works project shall be 
required to be repaid if construction of such project is initiated as a 
result of a grant-in-aid made from an allocation made by the President 
under the Public Works Acceleration Act.''
    Subsec. (h). Pub. L. 100-242, Sec. 524(1), struck out subsec. (h) 
which read as follows:
    ``(1) Notwithstanding any other provision of law, if a public agency 
or Indian tribe undertakes to construct only a portion of a public work 
planned with an advance under this section, under title V of the War 
Mobilization and Reconversion Act of 1944, or under the Act of October 
13, 1949, it shall repay only such proportionate amount of the advance 
relating to the public work as the Secretary determines to be equitable.
    ``(2) The Secretary is authorized to terminate, upon such terms and 
conditions as he shall deem equitable, all or a portion of the liability 
for repayment of any advance made under this section, title V of the War 
Mobilization and Reconversion Act of 1944, or the Act of October 13, 
1949. Whenever the Secretary determines that there is no reasonable 
likelihood that the public work, or a portion of the public work, 
planned with such advance will be constructed, he may terminate the 
agreement for the advance. Such determination shall be conclusive and 
shall be based on standards prescribed by regulations to be issued by 
the Secretary.''
    1968--Subsec. (a). Pub. L. 90-448 authorized advances for 
feasibility studies.
    1967--Pub. L. 90-19 substituted ``Secretary'' for ``Administrator'' 
wherever appearing in subsecs. (a), (d) to (f), and (h)(1), (2) of this 
section.
    1965--Subsec. (e). Pub. L. 89-117 substituted ``$70,000,000'' for 
``$20,000,000''.
    1964--Subsec. (a). Pub. L. 88-560, Sec. 602(c)(1), (e), inserted 
``and Indian tribes'' wherever appearing, and authorized, in the case of 
public works to be constructed in connection with the development of a 
medical center, aid in financing a general plan for the development of 
such center.
    Subsec. (b)(3). Pub. L. 88-560, Sec. 602(c)(2), (f), inserted ``or 
Indian tribe'', and struck out requirement that subsequent to approval 
and prior to disbursement of any Federal funds for advance planning, the 
applicant had to establish a separate planning account into which all 
Federal and applicant funds estimated to be required for plan 
preparation had to be placed.
    Subsec. (c). Pub. L. 88-560, Sec. 602(c)(3), (4), inserted 
references to Indian tribes wherever appearing and struck out proviso 
``That if the public agency undertakes to construct only a portion of a 
planned public work it shall repay such proportionate amount of the 
advances relating to the public work as the Administrator determines to 
be equitable.'' See subsec. (h) of this section.
    Subsec. (e). Pub. L. 88-560, Sec. 602(a), provided that repayments 
and other receipts received after June 30, 1964, and all advances 
outstanding as of such date, under title V of the War Mobilization and 
Reconversion Act of 1944, and the Act of October 13, 1949, shall go into 
the revolving fund, and substituted an authorization of appropriations 
not to exceed $20,000,000 in addition to amounts authorized prior to 
Sept. 2, 1964, as may be necessary for the purposes of this section, for 
an authorization not exceeding $58,000,000 in undisbursed balances in 
the revolving fund and in advances outstanding for plans with respect to 
projects which in the determination of the Administrator, could have 
been undertaken within a reasonable time.
    Subsec. (f). Pub. L. 88-560, Sec. 602(d), substituted ``$100,000'' 
for ``$50,000''.
    Subsec. (h). Pub. L. 88-560, Sec. 602(b), added subsec. (h).
    1962--Subsec. (g). Pub. L. 87-658 added subsec. (g).
    1961--Subsec. (a). Pub. L. 87-70, Sec. 502(1), substituted ``12\1/2\ 
per centum'' for ``10 per centum''.
    Subsec. (b). Pub. L. 87-70, Sec. 502(2), included regional or 
metropolitan or other area-wide projects, and substituted ``constructed 
within or over a reasonable period'' for ``constructed within a 
reasonable period''.
    Subsec. (e). Pub. L. 87-70, Sec. 502(3), (4), authorized an 
appropriation of $10,000,000, which may be made available on or after 
July 1, 1961, and increased the maximum amount of undisbursed balances 
from $48,000,000 to $58,000,000.
    1959--Subsec. (f). Pub. L. 86-372 added subsec. (f).
    1955--Act Aug. 11, 1955, amended section generally, striking out 
provisions which authorized the Administrator to make advances only 
during the three years commencing on July 1, 1954, and inserting 
provisions requiring construction within a reasonable period of time, 
authorizing repayment of proportionate amounts of advances, and 
establishing a revolving fund.


                  Repayment of Certain Planning Grants

    Section 1112 of Pub. L. 89-117 provided that: ``Notwithstanding any 
other provision of law, no advance made under section 501 of Public Law 
458, Seventy-eighth Congress [section 1671 of Title 50, Appendix, War 
and National Defense]; Public Law 352, Eighty-first Congress [sections 
451 to 458 of this title]; or section 702, Housing Act of 1954, Public 
Law 560, Eighty-third Congress [this section], for the planning of any 
public works project shall be required to be repaid if construction of 
such project has been heretofore or is hereafter initiated as a result 
of a grant-in-aid made from an allocation made by the President under 
the Public Works Acceleration Act [see References in Text note set out 
above].''


      Additional Amounts Appropriated for Payment to Revolving Fund

    Pub. L. 89-128, title I, Aug. 16, 1965, 79 Stat. 532--$10,000,000.
    Pub. L. 88-507, title I, Aug. 30, 1964, 78 Stat. 656--$1,000,000.
    Pub. L. 88-215, title I, Dec. 19, 1963, 77 Stat. 438--$2,000,000.
    Pub. L. 87-741, title I, Oct. 3, 1962, 76 Stat. 729--$12,000,000.
    Pub. L. 87-545, title I, July 25, 1962, 76 Stat. 212--$1,000,000.
    Pub. L. 87-141, title I, Aug. 17, 1961, 75 Stat. 354--$7,000,000.
    Pub. L. 86-626, title I, July 12, 1960, 74 Stat. 435--$6,000,000.
    Pub. L. 86-255, title I, Sept. 14, 1959, 73 Stat. 508--$6,000,000.
    Pub. L. 85-844, title I, Aug. 28, 1958, 72 Stat. 1070--$7,000,000.
    Pub. L. 85-69, title I, June 29, 1957, 71 Stat. 233--$5,000,000.
    Act June 27, 1956, ch. 452, title I, 70 Stat. 346--$7,500,000.

                  Section Referred to in Other Sections

    This section is referred to in title 42 section 5153.
