43 CFR 426.14 - Involuntary acquisition of land.

§ 426.14 Involuntary acquisition of land.

(a)Definitions for purposes of this section. Financial institution means a commercial bank or trust company, a private bank, an agency or branch of a foreign bank in the United States, a thrift institution, an insurance company, a loan or finance company, or the Farm Credit System.

Involuntarily acquired land means land that is acquired through an involuntary foreclosure or similar involuntary process of law, conveyance in satisfaction of a debt (including, but not limited to, a mortgage, real estate contract or deed of trust), inheritance, or devise.

(b)Ineligible excess land that is involuntarily acquired. Reclamation cannot make available irrigation water to land that was ineligible excess land before the new landowner involuntarily acquired it, unless:

(1) The land becomes nonexcess in the new landowner's ownership; and

(2) The deed to the land contains the 10-year covenant requiring Reclamation sale price approval, and that deed commences when the land becomes eligible to receive irrigation water.

(3) If either of these conditions is not met, the land remains ineligible excess until sold to an eligible buyer at an approved price, and the seller places the 10-year covenant requiring Reclamation price approval, as specified in § 426.12(i), in the deed transferring title to the land to the buyer.

(c)Land that was held under a recordable contract and is acquired involuntarily. Reclamation can make available irrigation water to land held under a recordable contract that is involuntarily acquired under the terms of the recordable contract to the extent the land continues to be excess in his or her landholding, if the landowner:

(1) Assumes the recordable contract; and

(2) Executes an assumption agreement provided by Reclamation.

(3) This land will remain eligible to receive irrigation water for the longer of 5 years from the date that the land was involuntarily acquired, or for the remainder of the recordable contract period. The sale of this land shall be under terms and conditions set forth in the recordable contract and must be satisfactory to and at a price approved by Reclamation.

(d)Mortgaged land. Reclamation treats mortgaged land that changed from nonexcess status to excess status after the mortgage was recorded, and which is subsequently acquired by a lender through an involuntary foreclosure or similar process of law, or by a bona fide conveyance in satisfaction of a mortgage, in the following manner:

(1) If the new landowner designates the land as excess in his or her holding, then:

(i) The land is eligible to receive irrigation water for a period of 5 years or until transferred to an eligible landowner, whichever occurs first;

(ii) During the 5-year period Reclamation will charge a rate for irrigation water equal to the rate paid by the former owner, unless the land becomes subject to full-cost pricing through leasing; and

(iii) The land is eligible for sale at its fair market value without a deed covenant restricting its future sales price; or

(2) If the new landowner is eligible to designate the land as nonexcess and he or she designates the land as nonexcess, the land will be treated in the same manner as any other nonexcess land and will be eligible for sale at its fair market value without a deed covenant restricting its future sales price.

(e)Nonexcess land that becomes excess when acquired involuntarily.

(1) Reclamation can make irrigation water available for a period of 5 years to a landowner who involuntarily acquires land that becomes excess in the involuntarily acquiring landowner's holding provided the land was nonexcess to the previous owner and:

(i) The acquiring landowner never previously held such land as ineligible excess land or under a recordable contract;

(ii) The acquiring landholder is a financial institution; or

(iii) The acquiring landowner previously held the land as ineligible excess or under a recordable contract and § 426.12(g)(1), (3), or (4) applies.

(2) The following will be applicable in situations that meet the criteria specified under paragraph (e)(1) of this section:

(i) Reclamation will charge a rate for irrigation water delivered to such land equal to the rate paid by the former owner, except Reclamation will charge the full-cost rate if:

(A) The land becomes subject to full-cost pricing through leasing; or

(B) If the involuntarily acquired land is eligible to receive irrigation water only because § 426.12(g)(3) applies and the deed covenant has not expired;

(ii) The new landowner may not place such land under a recordable contract;

(iii) The new landowner may request that Reclamation remove a deed covenant as provided in § 426.12(i)(4), and may sell such land at any time without price approval and without the deed covenant. However, the deed covenant will not be removed and the terms of the deed covenant will be fully applied if the new landowner is the landowner who sold the land in question from excess status, except for:

(A) Financial institutions; or

(B) Landowners for which § 426.12(g) (1) or (2) apply; and

(iv) Such land will become ineligible to receive irrigation water 5 years after it was acquired and will remain ineligible until sold to an eligible buyer or redesignated as provided for in paragraph (f) of this section.

(f)Redesignation of excess land to nonexcess. Landholders who designate involuntarily acquired land as excess as provided for in paragraphs (d)(1) and (e)(1) of this section and want to redesignate the land as nonexcess, must utilize the redesignation process specified under § 426.12(b)(2).

(1) However, such redesignations will not be approved if the water rate specified in paragraphs (d)(1)(ii) or (e)(2)(i) of this section is less than what would have been charged for water deliveries to the land in question if the landholder that involuntarily acquired the land had originally designated the land as nonexcess.

(2) Such landholders may utilize the redesignation process, if they remit to Reclamation the difference between the rate paid and the rate that would have been paid, if the land had been designated as nonexcess when involuntarily acquired, for all irrigation water delivered to the land in question while the land was designated as excess.

(g)Effect of involuntarily acquiring land subject to the discretionary provisions. A landowner does not automatically become subject to the discretionary provisions if the landowner acquires irrigation land involuntarily which was formerly subject to the discretionary provisions. However, a landholder that is subject to the prior law provisions will become subject to the discretionary provisions upon involuntarily acquiring land if:

(1) The land is located in a district that is subject to the discretionary provisions;

(2) The landholder in question will be the direct landowner of the land; and

(3) The landholder in question declares the land as nonexcess.

(h)Land acquired by inheritance or devise. If a landowner receives irrigation land through inheritance or devise, the 5-year eligibility period for receiving irrigation water on the newly acquired land per paragraphs (c)(3) and (e) of this section begins on the date of the previous landowner's death.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 16 - CONSERVATION
U.S. Code: Title 31 - MONEY AND FINANCE
U.S. Code: Title 43 - PUBLIC LANDS

§ 390aa - Congressional declaration of purpose; short title

§ 390bb - Definitions

§ 390cc - New or amended contracts

§ 390dd - Limitation on ownership

§ 390ee - Pricing

§ 390ff - Certification of compliance

§ 390gg - Equivalency

§ 390hh - Operation and maintenance charges

§ 390ii - Disposition of excess lands

§ 390jj - Water conservation

§ 390kk - Residency not required

§ 390ll - Corps of Engineers projects

§ 390mm - Repayment of construction charges

§ 390nn - Trusts

§ 390oo - Temporary supplies of water

§ 390pp - Involuntary foreclosure

§ 390qq - Isolated tracts

§ 390rr - Central Arizona Project

§ 390ss - Religious or charitable organizations

§ 390tt - Contract required

§ 390uu - Waiver of sovereign immunity

§ 390vv - Excess crop restrictions

§ 390ww - Administrative provisions

§ 390xx - Validation of contracts entered into prior to October 1, 1981

§ 390yy - Leasing requirements

§ 390zz - Reporting

§ 390zz-1

§ 418 - Private lands within project; agreement as to disposal of excess over farm unit

§ 423 - Permanently unproductive lands; exclusion from project; disposition of water right

§ 423a - Construction charges on permanently unproductive lands already paid; disposition

§ 423b - Suspension of payment of construction charges against areas temporarily unproductive

§ 423c - Exchange of unpatented entries; entries, farms or private lands, eliminated from project; rights not assignable; rights of lienholders; preference to ex-service men

§ 423d - Amendment of existing water right contracts by Secretary of the Interior

§ 423e - Completion of new projects or new division; execution of contract with district as condition precedent to delivery of water; contents of contract; cooperation of States with United States; limitations on sale of land

§ 423f - Purpose of sections 423 to 423g and 610

§ 423g - Adjustment of water right charges as final adjudication on projects and divisions named

§ 423h - Delivery of water to excess lands upon death of spouse

§ 424 - Disposal of lands classified as temporarily or permanently unproductive; persons who may take

§ 424a - Sale of unproductive lands; terms; area purchasable; tracts included

§ 424b - Application of certain statutes to lands sold

§ 424c - Issuance of patents; recitals in patents; reservations

§ 424d - Use of moneys collected from sales, project construction charges and water rentals respecting unproductive lands

§ 424e - Authority of Secretary of the Interior; rules and regulations

§ 425 - Exemption of lands owned by States, etc., from acreage limitation on receipt of irrigation benefits; determination of exempt status

§ 425a - Eligibility of transferred lands owned by States, etc., for receipt of water from a Federal reclamation project, division, or unit; conditions of eligibility; purchase price

§ 425b - Receipt of project water by lessees of irrigable lands owned by States, etc.; time limitation; applicability of acreage limitations

§ 431 - Limitation as to amount of water; qualifications of applicant

§ 434 - Amount of land for which entry may be made; farm unit; subdivision of lands

§ 440 - Regulations as to use of water and requirements as to cultivation and reclamation of land; cancellation for noncompliance with requirements

§ 451 - Conditions necessary for exchange; terms; credits; rights nonassignable

§ 451a - Persons eligible for benefits

§ 451b - Irrigation construction charges

§ 451c - Cancellation of charges or liens; credits

§ 451d - Disposal of improvements; water rights; revertibil­ity of relinquished land

§ 451e - Amendment of farm unit; application; amount of land; exchange; waiver

§ 451f - Exchanges subject to mortgage contracts

§ 451g - Preferences; veterans; timely applicants

§ 451h - Establishment of farm units; size; contiguous or noncontiguous

§ 451i - “Federal irrigation project” defined

§ 451j - Rules and regulations

§ 451k - Availability of appropriations; expenses as nonreimbursable

§ 462 - Classification of irrigable lands and equitable apportionment of charges

§ 485 - Declaration of policy

§ 485a - Definitions

§ 485b - Amendment of existing repayment contracts

§ 485b-1

§ 485c - Repealed. Pub. L. 85–611, § 3, Aug. 8, 1958, 72 Stat. 543

§ 485d - Time of payments to the United States

§ 485e - Maintenance and operation of project works; delinquency penalties

§ 485f - Negotiation of equitable contracts by Secretary

§ 485g - Classification of lands

§ 485h - New projects; sale of water and electric power; lease of power privileges

§ 485h-1

§ 485h-2

§ 485h-3

§ 485h-4

§ 485h-5

§ 485h-6

§ 485h-7

§ 485i - Rules and regulations

§ 485j - Effect on existing laws

§ 485k - Short title

§ 491 - Authority of Secretary to operate works

§ 492 - Operation and maintenance charges generally

§ 493 - Operation charges; date of payment; discount; advance payment

§ 493a - Omitted

§ 494 - Pecuniary penalty for nonpayment of operation charge

§ 495 - Shutting off water for nonpayment of operation charge

§ 496 - Cancellation of entry or water right for nonpayment of operation charge

§ 497 - Action to recover operation charge and penalty

§ 498 - Transfer of management and operation of works to water users generally

§ 499 - Discretionary power to transfer management

§ 499a - Transfer of title to movable property; use of appropriations

§ 499b - Transfer to municipal corporations or other organizations of care, operation, and maintenance of works supplying water for municipal, domestic, or industrial use

§ 500 - Duty of association or district to take over management

§ 501 - Disposition of profits of project taken over by water users

§ 502 - Emergency fund to assure continuous operation of projects and project facilities governed by Federal reclamation law

§ 503 - “Unusual or emergency conditions” defined

§ 504 - Rehabilitation and betterment of Federal reclamation projects, including small reclamation proj­ects; return of costs; interest; definitions; performance of work

§ 505 - Drainage facilities and minor construction in irrigation works; contracts with repayment organizations; limitation on costs; submission of contract to Congress

§ 511 - Authority to contract with irrigation district

§ 512 - Release of Government liens after contract with irrigation districts

§ 513 - Lands in project subject to provisions of chapter; after contract with irrigation district

§ 544 - Limitation as to holdings prior to final payment of charges; forfeiture of excess holding

Public Laws
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