{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 401 sorted by section_id", "rows": [["14:14:4.0.2.7.2.0.24.1", 14, "Aeronautics and Space", "III", "A", "401", "PART 401\u2014ORGANIZATION AND DEFINITIONS", "", "", "", "\u00a7 401.1 The Office of Commercial Space Transportation.", "FAA", "", "", "[Amdt. 401-3, 68 FR 35289, June 13, 2003]", "The Office of Commercial Space Transportation, referred to in these regulations as the \u201cOffice,\u201d is a line of business within the Federal Aviation Administration and is located in the Federal Aviation Administration Headquarters, 800 Independence Avenue, SW., Room 331, Washington, DC 20591."], ["14:14:4.0.2.7.2.0.24.2", 14, "Aeronautics and Space", "III", "A", "401", "PART 401\u2014ORGANIZATION AND DEFINITIONS", "", "", "", "\u00a7 401.3 The Associate Administrator for Commercial Space Transportation.", "FAA", "", "", "[Doc. No. FAA-2006-24197, 72 FR 17016, Apr. 6, 2007]", "The Office is headed by an Associate Administrator to exercise the Secretary's authority to license or permit and otherwise regulate commercial space transportation and to discharge the Secretary's responsibility to encourage, facilitate, and promote commercial space transportation by the United States private sector."], ["14:14:4.0.2.7.2.0.24.3", 14, "Aeronautics and Space", "III", "A", "401", "PART 401\u2014ORGANIZATION AND DEFINITIONS", "", "", "", "\u00a7 401.5 Definitions.", "FAA", "", "", "[Doc. No. FAA-1999-5535, 65 FR 56656, Sept. 19, 2000, as amended by Amdt. 401-2, 65 FR 62861, Oct. 19, 2000; Amdt. 401-4, 71 FR 50530, Aug. 25, 2006; 71 FR 75631, Dec. 15, 2006; Amdt. 401-5, 72 FR 17016, Apr. 6, 2007; Amdt. 401-6, 73 FR 73782, Dec. 4, 2008; Amdt. 401-7, 77 FR 20532, Apr. 5, 2012; 80 FR 30151, May 27, 2015; Amdt. 401-8, 80 FR 31834, June 4, 2015; Doc. No. FAA-2019-0229, Amdt. 401-9, 85 FR 79707, Dec. 10, 2020; Doc. No. FAA-2023-1656, Amdt. No. 401-10, 89 FR 76725, Sept. 19, 2024]", "For the purposes of parts 415, 417, 431, 435, 440, and 460 of this chapter, the following definitions apply:\n\nAct  means 51 U.S.C Subtitle V, Programs Targeting Commercial Opportunities, chapter 509\u2014Commercial Space Launch Activities, 51 U.S.C. 50901-50923.\n\nAssociate Administrator  means the Associate Administrator for Commercial Space Transportation, Federal Aviation Administration, or any person designated by the Associate Administrator to exercise the authority or discharge the responsibilities of the Associate Administrator.\n\nCasualty  means serious injury or death.\n\nContingency abort  means cessation of vehicle flight during ascent or descent in a manner that does not jeopardize public health and safety and the safety of property, in accordance with mission rules and procedures. Contingency abort includes landing at an alternative location that has been designated as a contingency abort location in advance of vehicle flight.\n\nCrew  means any employee or independent contractor of a licensee, transferee, or permittee, or of a contractor or subcontractor of a licensee, transferee, or permittee, who performs activities in the course of that employment or contract directly relating to the launch, reentry, or other operation of or in a launch vehicle or reentry vehicle that carries human beings. A crew consists of flight crew and any remote operator.\n\nEmergency abort  means cessation of vehicle flight during ascent or descent in a manner that minimizes risk to public health and safety and the safety of property. Emergency abort involves failure of a vehicle, safety-critical system, or flight safety system such that contingency abort is not possible.\n\nEquivalent  level of safety means an approximately equal level of safety as determined by qualitative or quantitative means.\n\nExpendable launch vehicle  means a launch vehicle whose propulsive stages are flown only once.\n\nExperimental permit  or  permit  means an authorization by the FAA to a person to launch or reenter a reusable suborbital rocket.\n\nFederal launch range  means a launch site, from which launches routinely take place, that is owned and operated by the government of the United States.\n\nFlight crew  means crew that is on board a vehicle during a launch or reentry.\n\nFlight safety system  means a system designed to limit or restrict the hazards to public health and safety and the safety of property presented by a launch vehicle or reentry vehicle while in flight by initiating and accomplishing a controlled ending to vehicle flight. A flight safety system may be destructive resulting in intentional break up of a vehicle or nondestructive, such as engine thrust termination enabling vehicle landing or safe abort capability.\n\nGovernment astronaut  means an individual who\u2014\n\n(1) Is designated by the National Aeronautics and Space Administration under Title 51, United States Code, Section 20113(n);\n\n(2) Is carried within a launch vehicle or reentry vehicle in the course of their employment, which may include performance of activities directly relating to the launch, reentry, or other operation of the launch vehicle or reentry vehicle; and\n\n(3) Is either\u2014\n\n(i) An employee of the United States Government, including the uniformed services, engaged in the performance of a Federal function under authority of law or an Executive act; or\n\n(ii) An international partner astronaut.\n\nHazardous materials  means hazardous materials as defined in 49 CFR 172.101.\n\nHuman space flight incident  means an unplanned event that poses a high risk of causing a serious or fatal injury to a space flight participant, crew, or government astronaut.\n\nInstantaneous impact point  means an impact point, following thrust termination of a launch vehicle, calculated in the absence of atmospheric drag effects.\n\nInternational partner astronaut  means an individual designated under Article 11 of the International Space Station Intergovernmental Agreement, by a partner to that agreement other than the United States, as qualified to serve as an International Space Station crew member.\n\nInternational Space Station Intergovernmental Agreement  means the Agreement Concerning Cooperation on the International Space Station, signed in Washington, DC, on January 29, 1998 (TIAS 12927).\n\nLaunch  means to place or try to place a launch vehicle or reentry vehicle and any payload, space flight participant, crew, or government astronaut from Earth in a suborbital trajectory, in Earth orbit in outer space, or otherwise in outer space, and includes preparing a launch vehicle for flight at a launch site in the United States. Launch includes the flight of a launch vehicle and includes pre- and post-flight ground operations as follows:\n\n(1)  Beginning of launch.  (i) Under a license, launch begins with the arrival of a launch vehicle or payload at a U.S. launch site.\n\n(ii) Under a permit, launch begins when any pre-flight ground operation at a U.S. launch site meets all of the following criteria:\n\n(A) Is closely proximate in time to flight,\n\n(B) Entails critical steps preparatory to initiating flight,\n\n(C) Is unique to space launch, and\n\n(D) Is inherently so hazardous as to warrant the FAA's regulatory oversight.\n\n(2)  End of launch.  (i) For launch of an orbital expendable launch vehicle (ELV), launch ends after the licensee's last exercise of control over its launch vehicle.\n\n(ii) For launch of an orbital reusable launch vehicle (RLV) with a payload, launch ends after deployment of the payload. For any other orbital RLV, launch ends upon completion of the first sustained, steady-state orbit of an RLV at its intended location.\n\n(iii) For a suborbital ELV or RLV launch, launch ends after reaching apogee if the flight includes a reentry, or otherwise after vehicle landing or impact on Earth, and after activities necessary to return the vehicle to a safe condition on the ground.\n\nLaunch accident  means\u2014\n\n(1) An event that causes a fatality or serious injury (as defined in 49 CFR 830.2) to any person who is not associated with the flight;\n\n(2) An event that causes damage estimated to exceed $25,000 to property not associated with the flight that is not located at the launch site or designated recovery area;\n\n(3) An unplanned event occurring during the flight of a launch vehicle resulting in the impact of a launch vehicle, its payload, or any component thereof:\n\n(i) For an expendable launch vehicle, outside designated impact limit lines; and\n\n(ii) For a reusable launch vehicle, outside a designated landing site.\n\n(4) For a launch that takes place with a person on board, a fatality or serious injury to a space flight participant, crew, or government astronaut.\n\nLaunch incident  means an unplanned event during the flight of a launch vehicle, other than a launch accident, involving a malfunction of a flight safety system or safety-critical system, or a failure of the licensee's or permittee's safety organization, design, or operations.\n\nLaunch operator  means a person who conducts or who will conduct the launch of a launch vehicle and any payload.\n\nLaunch site  means the location on Earth from which a launch takes place (as defined in a license the Secretary issues or transfers under this chapter) and necessary facilities at that location.\n\nLaunch site safety assessment  means an FAA assessment of a Federal launch range to determine if the range meets FAA safety requirements. A difference between range practice and FAA requirements is documented in the LSSA.\n\nLaunch vehicle  means a vehicle built to operate in, or place a payload in, outer space or a suborbital rocket.\n\nMishap  means a launch or reentry accident, launch or reentry incident, launch site accident, failure to complete a launch or reentry as planned, or an unplanned event or series of events resulting in a fatality or serious injury (as defined in 49 CFR 830.2), or resulting in greater than $25,000 worth of damage to a payload, a launch or reentry vehicle, a launch or reentry support facility or government property located on the launch or reentry site.\n\nNominal  means, in reference to launch vehicle performance, trajectory, or stage impact point, a launch vehicle flight where all vehicle aerodynamic parameters are as expected, all vehicle internal and external systems perform exactly as planned, and there are no external perturbing influences other than atmospheric drag and gravity.\n\nOperation of a launch site  means the conduct of approved safety operations at a permanent site to support the launching of vehicles and payloads.\n\nOperation of a reentry site  means the conduct of safety operations at a permanent site on Earth at which a reentry vehicle and its payload, if any, is intended to land.\n\nOperator  means a holder of a license or permit under 51 U.S.C. Subtitle V, chapter 509.\n\nPayload  means an object that a person undertakes to place in outer space by means of a launch vehicle, including components of the vehicle specifically designed or adapted for that object.\n\nPerson  means an individual or an entity organized or existing under the laws of a state or country.\n\nPhysical electronic storage  means a physical device that can store electronic documents and files including but not limited to an optical disc, a memory card, a USB flash drive, or an external hard drive.\n\nPilot  means a flight crew member who has the ability to control, in real time, a launch or reentry vehicle's flight path.\n\nPopulated area  means\u2014\n\n(1) An outdoor location, structure, or cluster of structures that may be occupied by people;\n\n(2) Sections of roadways and waterways that are frequented by automobile and boat traffic; or\n\n(3) Agricultural lands, if routinely occupied by field workers.\n\nPublic safety  means, for a particular licensed launch, the safety of people and property that are not involved in supporting the launch and includes those people and property that may be located within the boundary of a launch site, such as visitors, individuals providing goods or services not related to launch processing or flight, and any other launch operator and its personnel.\n\nReenter; reentry  means to return or attempt to return, purposefully, a reentry vehicle and its payload, space flight participant, crew, or government astronaut, if any, from Earth orbit or from outer space to Earth. The term \u201creenter; reentry\u201d includes activities conducted in Earth orbit or outer space to determine reentry readiness and that are critical to ensuring public health and safety and the safety of property during reentry flight. The term \u201creenter; reentry\u201d also includes activities conducted on the ground after vehicle landing on Earth to ensure the reentry vehicle does not pose a threat to public health and safety or the safety of property.\n\nReentry accident  means\u2014\n\n(1) Any unplanned event occurring during the reentry of a reentry vehicle resulting in the impact of the reentry vehicle, its payload, or any component thereof, outside a designated reentry site;\n\n(2) An event that causes a fatality or serious injury (as defined in 49 CFR 830.2) to any person who is not associated with the reentry;\n\n(3) An event that causes damage estimated to exceed $25,000 to property not associated with the reentry and not located within a designated reentry site; and\n\n(4) For a reentry that takes place with a person on board, a fatality or serious injury to a space flight participant, crew, or government astronaut.\n\nReentry incident  means any unplanned event occurring during the reentry of a reentry vehicle, other than a reentry accident, involving a malfunction of a reentry safety-critical system or failure of the licensee's or permittee's safety organization, procedures, or operations.\n\nReentry operator  means a person responsible for conducting the reentry of a reentry vehicle as specified in a license issued by the FAA.\n\nReentry site  means the location on Earth where a reentry vehicle is intended to return. It includes the area within three standard deviations of the intended landing point (the predicted three-sigma footprint).\n\nReentry vehicle  means a vehicle designed to return from Earth orbit or outer space to Earth substantially intact. A reusable launch vehicle that is designed to return from Earth orbit or outer space to Earth substantially intact is a reentry vehicle.\n\nRemote operator  means a crew member who\n\n(1) Has the ability to control, in real time, a launch or reentry vehicle's flight path, and\n\n(2) Is not on board the controlled vehicle.\n\nReusable launch vehicle  (RLV) means a launch vehicle that is designed to return to Earth substantially intact and therefore may be launched more than one time or that contains vehicle stages that may be recovered by a launch operator for future use in the operation of a substantially similar launch vehicle.\n\nRisk  means a measure that accounts for both the probability of occurrence of a hazardous event and the consequence of that event to persons or property.\n\nSafety critical  means essential to safe performance or operation. A safety critical system, subsystem, component, condition, event, operation, process, or item is one whose proper recognition, control, performance, or tolerance is essential to ensuring public safety. Something that is safety critical item creates a safety hazard or provide protection from a safety hazard.\n\nSigma  means a single standard deviation from a fixed value, such as a mean.\n\nSpace flight participant  means an individual, who is not crew or a government astronaut, carried on board a launch vehicle or reentry vehicle.\n\nState and United States  means, when used in a geographical sense, the several States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the United States Virgin Islands, Guam, and any other commonwealth, territory, or possession of the United States; and\n\nSuborbital rocket  means a vehicle, rocket-propelled in whole or in part, intended for flight on a suborbital trajectory, and the thrust of which is greater than its lift for the majority of the rocket-powered portion of its ascent.\n\nSuborbital trajectory  means the intentional flight path of a launch vehicle, reentry vehicle, or any portion thereof, whose vacuum instantaneous impact point does not leave the surface of the Earth.\n\nTether system  means a device that contains launch vehicle hazards by physically constraining a launch vehicle in flight to a specified range from its launch point. A tether system includes all components, from the tether's point of attachment to the vehicle to a solid base, that experience load during a tethered launch.\n\nUnited States citizen  means:\n\n(1) Any individual who is a citizen of the United States;\n\n(2) Any corporation, partnership, joint venture, association, or other entity organized or existing under the laws of the United States or any State; and\n\n(3) Any corporation, partnership, joint venture, association, or other entity which is organized or exists under the laws of a foreign nation, if the controlling interest in such entity is held by an individual or entity described in paragraph (1) or (2) of this definition.  Controlling interest  means ownership of an amount of equity in such entity sufficient to direct management of the entity or to void transactions entered into by management. Ownership of at least fifty-one percent of the equity in an entity by persons described in paragraph (1) or (2) of this definition creates a rebuttable presumption that such interest is controlling.\n\nValidation  means an evaluation to determine that each safety measure derived from a system safety process is correct, complete, consistent, unambiguous, verifiable, and technically feasible. Validation ensures that the right safety measure is implemented, and that the safety measure is well understood.\n\nVehicle safety operations personnel  means those persons whose job performance is critical to public health and safety or the safety of property during RLV or reentry operations.\n\nVerification  means an evaluation to determine that safety measures derived from a system safety process are effective and have been properly implemented. Verification provides measurable evidence that a safety measure reduces risk to acceptable levels."], ["14:14:4.0.2.7.2.0.24.4", 14, "Aeronautics and Space", "III", "A", "401", "PART 401\u2014ORGANIZATION AND DEFINITIONS", "", "", "", "\u00a7 401.7 Definitions.", "FAA", "", "", "[Doc. No. FAA-2019-0229, Amdt. 401-9, 85 FR 79707, Dec. 10, 2020; Doc. No. FAA-2023-1656, Amdt. No. 401-10, 89 FR 76726, Sept. 19, 2024]", "For the purposes of this chapter unless otherwise excepted, the following definitions apply:\n\nAct  means 51 U.S.C Subtitle V, Programs Targeting Commercial Opportunities, chapter 509\u2014Commercial Space Launch Activities, 51 U.S.C. 50901-50923.\n\nAnomaly  means any condition during licensed or permitted activity that deviates from what is standard, normal, or expected, during the verification or operation of a system, subsystem, process, facility, or support equipment.\n\nAssociate Administrator  means the Associate Administrator for Commercial Space Transportation, Federal Aviation Administration, or any person designated by the Associate Administrator to exercise the authority or discharge the responsibilities of the Associate Administrator.\n\nCasualty  means serious injury or death.\n\nCasualty area  means the area surrounding each potential debris or vehicle impact point where serious injuries, or worse, can occur.\n\nCommand control system  means the portion of a flight safety system that includes all components needed to send a flight abort control signal to the on-board portion of a flight safety system.\n\nContingency abort  means a flight abort with a landing at a planned location that has been designated in advance of vehicle flight.\n\nCountdown  means the timed sequence of events that must take place to initiate flight of a launch vehicle or reentry of a reentry vehicle.\n\nCrew  means any employee or independent contractor of a licensee, transferee, or permittee, or of a contractor or subcontractor of a licensee, transferee, or permittee, who performs activities in the course of that employment or contract directly relating to the launch, reentry, or other operation of or in a launch vehicle or reentry vehicle that carries human beings. A crew consists of flight crew and any remote operator.\n\nCritical asset  means an asset that is essential to the national interests of the United States. Critical assets include property, facilities, or infrastructure necessary for national security purposes, high priority civil space purposes, or assured access to space for national priority missions.\n\nCritical payload  means a payload and essential infrastructure directly supporting such a payload that is a critical asset that:\n\n(1) Is so costly or unique that it cannot be readily replaced; or\n\n(2) The time frame for its replacement would adversely affect the national interests of the United States.\n\nCrossrange  means the distance measured along a line whose direction is either 90 degrees clockwise (right crossrange) or counter-clockwise (left crossrange) to the projection of a vehicle's planned nominal velocity vector azimuth onto a horizontal plane tangent to the ellipsoidal Earth model at the vehicle's sub-vehicle point. The terms right crossrange and left crossrange may also be used to indicate direction.\n\nDeorbit  means the flight of a vehicle that begins with the final command to commit to a perigee below 70 nautical miles (approximately 130 kilometers), and ends when all vehicle components come to rest on the Earth.\n\nDisposal  means the return or attempt to return, purposefully, a launch vehicle stage or component, not including a reentry vehicle, from Earth orbit to Earth, in a controlled manner.\n\nDownrange  means the distance measured along a line whose direction is parallel to the projection of a vehicle's planned nominal velocity vector azimuth into a horizontal plane tangent to the ellipsoidal Earth model at the vehicle sub-vehicle point. The term downrange may also be used to indicate direction.\n\nEffective casualty area  means the aggregate casualty area of each piece of debris created by a vehicle failure at a particular point on its trajectory. The effective casualty area for each piece of debris is a modeling construct in which the area within which 100 percent of the population are assumed to be a casualty, and outside of which 100 percent of the population are assumed not to be a casualty.\n\nEquivalent level of safety  means an approximately equal level of safety as determined by qualitative or quantitative means.\n\nExpected casualty  means the mean number of casualties predicted to occur per flight operation if the operation were repeated many times.\n\nExpendable launch vehicle  means a launch vehicle whose propulsive stages are flown only once.\n\nExperimental permit  or  permit  means an authorization by the FAA to a person to launch or reenter a reusable suborbital rocket.\n\nExplosive debris  means solid propellant fragments or other pieces of a vehicle or payload that result from breakup of the vehicle during flight and that explode upon impact with the Earth's surface and cause overpressure.\n\nFederal launch or reentry site  means a launch or reentry site, from which launches routinely take place, that is owned and operated by the government of the United States.\n\nFlight abort  means the process to limit or restrict the hazards to public safety, and the safety of property, presented by a launch vehicle or reentry vehicle, including any payload, while in flight by initiating and accomplishing a controlled ending to vehicle flight.\n\nFlight abort rules  means the conditions under which a flight safety system must abort the flight to ensure compliance with the safety criteria in \u00a7 450.101.\n\nFlight crew  means crew that is on board a vehicle during a launch or reentry.\n\nFlight hazard area  means any region of land, sea, or air that must be surveyed, publicized, controlled, or evacuated to ensure compliance with the safety criteria in \u00a7 450.101.\n\nFlight safety limit  means criteria to ensure that public safety and critical assets are protected from the flight of a vehicle when a flight safety system functions properly.\n\nFlight safety system  means a system used to implement flight abort. A flight safety system includes any flight safety system located on board a launch or reentry vehicle; any ground based command control system; any support system, including telemetry subsystems and tracking subsystems, necessary to support a flight abort decision; and the functions of any personnel who operate the flight safety system hardware or software.\n\nGovernment astronaut  means an individual who\u2014\n\n(1) Is designated by the National Aeronautics and Space Administration under Title 51, United States Code, Section 20113(n);\n\n(2) Is carried within a launch vehicle or reentry vehicle in the course of their employment, which may include performance of activities directly relating to the launch, reentry, or other operation of the launch vehicle or reentry vehicle; and\n\n(3) Is either\u2014\n\n(i) An employee of the United States Government, including the uniformed services, engaged in the performance of a Federal function under authority of law or an Executive act; or\n\n(ii) An international partner astronaut.\n\nHazard control  means a preventative measure or mitigation put in place for systems or operations to reduce the severity of a hazard or the likelihood of the hazard occurring.\n\nHazardous debris  means any object or substance capable of causing a casualty or loss of functionality to a critical asset. Hazardous debris includes inert debris and explosive debris such as an intact vehicle, vehicle fragments, any detached vehicle component whether intact or in fragments, payload, and any planned jettison bodies.\n\nHazardous materials  means hazardous materials as defined in 49 CFR 172.101.\n\nInstantaneous impact point  means a predicted impact point, following thrust termination of a vehicle.\n\nInternational partner astronaut  means an individual designated under Article 11 of the International Space Station Intergovernmental Agreement, by a partner to that agreement other than the United States, as qualified to serve as an International Space Station crew member.\n\nInternational Space Station Intergovernmental Agreement  means the Agreement Concerning Cooperation on the International Space Station, signed in Washington, DC, on January 29, 1998 (TIAS 12927).\n\nKey flight safety event  means a flight activity that has an increased likelihood of causing a failure compared with other portions of flight.\n\nLaunch  means to place or try to place a launch vehicle or reentry vehicle and any payload or human being from Earth in a suborbital trajectory, in Earth orbit in outer space, or otherwise in outer space, including activities involved in the preparation of a launch vehicle or payload for launch, when those activities take place at a launch site in the United States.\n\nLaunch operator  means a person who conducts or who will conduct the launch of a launch vehicle and any payload.\n\nLaunch or reentry system  means the integrated set of subsystems, personnel, products, and processes that, when combined, carries out a launch or reentry.\n\nLaunch site  means the location on Earth from which a launch takes place (as defined in a license the Secretary issues or transfers under this chapter) and necessary facilities at that location.\n\nLaunch vehicle  means a vehicle built to operate in, or place a payload in, outer space or a suborbital rocket.\n\nLaunch window  means an approved period of time during which the flight of a launch vehicle may be initiated.\n\nLiftoff  means any motion of the launch vehicle with intention to initiate flight.\n\nLimits of a useful mission  means the trajectory data or other parameters that bound the performance of a useful mission, including flight azimuth limits.\n\nMishap  means any event, or series of events associated with a licensed or permitted activity resulting in any of the following:\n\n(1) A fatality or serious injury (as defined in 49 CFR 830.2);\n\n(2) A malfunction of a safety-critical system;\n\n(3) A failure of the licensee's or permittee's safety organization, safety operations, safety procedures;\n\n(4) High risk, as determined by the FAA, of causing a serious or fatal injury to any space flight participant, crew, government astronaut, or member of the public;\n\n(5) Substantial damage, as determined by the FAA, to property not associated with licensed or permitted activity;\n\n(6) Unplanned substantial damage, as determined by the FAA, to property associated with licensed or permitted activity;\n\n(7) Unplanned permanent loss of a launch or reentry vehicle during licensed activity or permitted activity;\n\n(8) The impact of hazardous debris outside the planned landing site or designated hazard area; or\n\n(9) Failure to complete a launch or reentry as planned as reported in \u00a7 450.213(b).\n\nNeighboring operations personnel  means those members of the public located within a launch or reentry site, or an adjacent launch or reentry site, who are not associated with a specific hazardous licensed or permitted operation currently being conducted, but are required to perform safety, security, or critical tasks at the site and are notified of the operation.\n\nNominal  means, in reference to launch vehicle performance, trajectory, or stage impact point, a launch vehicle flight where all vehicle aerodynamic parameters are as expected, all vehicle internal and external systems perform exactly as planned, and there are no external perturbing influences other than atmospheric drag and gravity.\n\nNormal flight  means the flight of a properly performing vehicle whose real-time vacuum instantaneous impact point does not deviate from the nominal vacuum instantaneous impact point by more than the sum of the wind effects and the three-sigma guidance and performance deviations in the uprange, downrange, left-crossrange, or right-crossrange directions.\n\nNormal trajectory  means a trajectory that describes normal flight.\n\nOperating environment  means an environment that a launch or reentry vehicle component will experience during its lifecycle. Operating environments include shock, vibration, thermal cycle, acceleration, humidity, thermal vacuum, or other environments relevant to system or material degradation.\n\nOperation hazard  means a hazard created by an operating environment or by an unsafe act.\n\nOperation of a launch site  means the conduct of approved safety operations at a permanent site to support the launching of vehicles and payloads.\n\nOperation of a reentry site  means the conduct of safety operations at a permanent site on Earth at which a reentry vehicle and its payload, if any, is intended to land.\n\nOperator  means a holder of a license or permit under 51 U.S.C. Subtitle V, chapter 509.\n\nOrbital insertion  means the point at which a vehicle achieves a minimum 70-nautical mile perigee based on a computation that accounts for drag.\n\nPayload  means an object that a person undertakes to place in outer space by means of a launch vehicle, including components of the vehicle specifically designed or adapted for that object.\n\nPerson  means an individual or an entity organized or existing under the laws of a State or country.\n\nPhysical containment  means a launch vehicle does not have sufficient energy for any hazards associated with its flight to reach the public or critical assets.\n\nPhysical electronic storage  means a physical device that can store electronic documents and files including but not limited to an optical disc, a memory card, a USB flash drive, or an external hard drive.\n\nPilot  means a flight crew member who has the ability to control, in real time, a launch or reentry vehicle's flight path.\n\nPopulated area  means\u2014\n\n(1) An outdoor location, structure, or cluster of structures that may be occupied by people;\n\n(2) Sections of roadways and waterways that are frequented by automobile and boat traffic; or\n\n(3) Agricultural lands, if routinely occupied by field workers.\n\nProbability of casualty  means the likelihood that a person will suffer a serious injury or worse, including a fatal injury, due to all hazards from an operation at a specific location.\n\nPublic  means, for a particular licensed or permitted launch or reentry, people that are not involved in supporting the launch or reentry and includes those people who may be located within the launch or reentry site, such as visitors, individuals providing goods or services not related to launch or reentry processing or flight, and any other operator and its personnel.\n\nReenter; reentry  means to return or attempt to return, purposefully, a reentry vehicle and its payload or human being, if any, from Earth orbit or from outer space to Earth.\n\nReentry operator  means a person responsible for conducting the reentry of a reentry vehicle as specified in a license issued by the FAA.\n\nReentry site  means the location on Earth where a reentry vehicle is intended to return. It includes the area within three standard deviations of the intended landing point (the predicted three-sigma footprint).\n\nReentry vehicle  means a vehicle designed to return from Earth orbit or outer space to Earth substantially intact. A reusable launch vehicle that is designed to return from Earth orbit or outer space to Earth substantially intact is a reentry vehicle.\n\nReentry window  means an approved period of time during which the reentry of a reentry vehicle may be initiated.\n\nRemote operator  means a crew member who\u2014\n\n(1) Has the ability to control, in real time, a launch or reentry vehicle's flight path; and\n\n(2) Is not on board the controlled vehicle.\n\nReusable launch vehicle (RLV)  means a launch vehicle that is designed to return to Earth substantially intact and therefore may be launched more than one time or that contains vehicle stages that may be recovered by a launch operator for future use in the operation of a substantially similar launch vehicle.\n\nRisk  means a measure that accounts for both the probability of occurrence of a hazardous event and the consequence of that event to persons or property.\n\nSafety critical  means essential to safe performance or operation. A safety-critical system, subsystem, component, condition, event, operation, process, or item, is one whose proper recognition, control, performance, or tolerance, is essential to ensuring public safety and the safety of property.\n\nService life  means, for a safety-critical system component, the sum total of the component's storage life and operating life.\n\nSigma  means a single standard deviation from a fixed value, such as a mean.\n\nSoftware function  means a collection of computer code that implements a requirement or performs an action. This includes firmware and operating systems.\n\nSpace flight participant  means an individual, who is not crew or a government astronaut, carried on board a launch vehicle or reentry vehicle.\n\nState and United States  means, when used in a geographical sense, the several States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the United States Virgin Islands, Guam, and any other commonwealth, territory, or possession of the United States.\n\nSuborbital rocket  means a vehicle, rocket-propelled in whole or in part, intended for flight on a suborbital trajectory, and the thrust of which is greater than its lift for the majority of the rocket-powered portion of its ascent.\n\nSuborbital trajectory  means the intentional flight path of a launch vehicle, reentry vehicle, or any portion thereof, whose vacuum instantaneous impact point does not leave the surface of the Earth.\n\nSub-vehicle point  means the location on an ellipsoidal Earth model where the normal to the ellipsoid passes through the vehicle's center of gravity.\n\nSystem hazard  means a hazard associated with a system and generally exists even when no operation is occurring.\n\nTether system  means a device that contains launch vehicle hazards by physically constraining a launch vehicle in flight to a specified range from its launch point. A tether system includes all components, from the tether's point of attachment to the vehicle to a solid base, that experience load during a tethered launch.\n\nToxic hazard area  means a region on the Earth's surface where toxic concentrations and durations may be greater than accepted toxic thresholds for acute casualty, in the event of a worst case release or maximum credible release scenario during launch or reentry.\n\nUncontrolled area  is an area of land not controlled by a launch or reentry operator, a launch or reentry site operator, an adjacent site operator, or other entity by agreement.\n\nUnguided suborbital launch vehicle  means a suborbital rocket that does not contain active guidance or a directional control system.\n\nUnited States citizen  means:\n\n(1) Any individual who is a citizen of the United States;\n\n(2) Any corporation, partnership, joint venture, association, or other entity organized or existing under the laws of the United States or any State; and\n\n(3) Any corporation, partnership, joint venture, association, or other entity which is organized or exists under the laws of a foreign nation, if the controlling interest in such entity is held by an individual or entity described in paragraph (1) or (2) of this definition. Controlling interest means ownership of an amount of equity in such entity sufficient to direct management of the entity or to void transactions entered into by management. Ownership of at least fifty-one percent of the equity in an entity by persons described in paragraph (1) or (2) of this definition creates a rebuttable presumption that such interest is controlling.\n\nUprange  means the distance measured along a line that is 180 degrees to the downrange direction.\n\nUseful mission  means a mission that can attain one or more objectives.\n\nValidation  means an evaluation to determine that each safety measure derived from a system safety process is correct, complete, consistent, unambiguous, verifiable, and technically feasible. Validation ensures that the right safety measure is implemented, and that the safety measure is well understood.\n\nVerification  means an evaluation to determine that safety measures derived from a system safety process are effective and have been properly implemented. Verification provides measurable evidence that a safety measure reduces risk to acceptable levels.\n\nWind weighting safety system  means equipment, procedures, analysis and personnel functions used to determine the launcher elevation and azimuth settings that correct for wind effects that an unguided suborbital launch vehicle will experience during flight.\n\nWindow closure  means a period of time when launch or reentry is not permitted in order to avoid a collision with an object in orbit. A window closure may occur within a launch or reentry window, may delay the start of a window, or terminate a window early."], ["17:17:5.0.2.1.2.0.43.1", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.1 Exemption for organizations handling transactions in United States Savings Bonds.", "SEC", "", "", "", "An organization that handles United States Savings Bond transactions, including a qualified issuing or paying agent or an organization that accommodates customers or employees by forwarding requested transactions to qualified issuing or paying agents or the Treasury and whose transactions in government securities are limited to these transactions and such other activities that are exempted by the regulations under this subchapter, shall be exempt from the provisions of section 15C (a), (b) and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter. For the purposes of this section, the term \u201cUnited States Savings Bond\u201d means any savings-type security offered by the Treasury, including all series of United States Savings Bonds, United States Savings Notes and United States Savings Stamps."], ["17:17:5.0.2.1.2.0.43.2", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.2 Exemption for depository institutions that submit tenders for the account of customers for purchase on original issue of United States Treasury securities.", "SEC", "", "", "", "(a) Subject to the requirements of paragraph (b) of this section, a depository institution that submits tenders or subscriptions for purchase on original issue of United States Treasury securities for the account of customers on a fully disclosed basis, whose transactions in government securities are limited to such transactions and such other activities as have been exempted by regulation under this subchapter shall be exempt from the provisions of section 15C (a), (b) and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter.\n\n(b) A depository institution that relies on the exemption contained in paragraph (a) of this section is required to comply with the regulations of part 450 of this chapter concerning custodial holdings of government securities.\n\n(c) For the purposes of this section, \u201cdepository institution\u201d has the meaning stated in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)(i)-(vi)) and also includes a foreign bank, an agency or branch of a foreign bank and a commercial lending company owned or controlled by a foreign bank (as such terms are used in the International Banking Act of 1978, Pub. L. 95-369, 92 Stat. 607)."], ["17:17:5.0.2.1.2.0.43.3", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.3 Exemption for financial institutions that are engaged in limited government securities brokerage activities.", "SEC", "", "", "[52 FR 27930, July 24, 1987, as amended at 71 FR 54411, Sept. 15, 2006]", "(a)(1) Subject to the requirements of paragraph (b) of this section, a financial institution shall be exempt from the provisions of sections 15C (a), (b), and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter, unless it acts as a government securities broker by:\n\n(i) Holding itself out as a government securities broker or interdealer broker; or\n\n(ii) Actively soliciting purchases or sales of government securities on an agency basis;\n\n(2) Notwithstanding the provisions of paragraph (a)(1) of this section, a financial institution shall not be regarded as acting as a government securities broker within the meaning of this section if it:\n\n(i) Effects fewer than 500 government securities brokerage transactions (other than transactions described in \u00a7\u00a7 401.1 or 401.2) per year; or\n\n(ii) Effects all such transactions (other than transactions described in \u00a7\u00a7 401.1 or 401.2) pursuant to a contractual or other arrangement with one or more government securities brokers or dealers each of which has registered or filed notice pursuant to section 15C(a)(1) of the Act (15 U.S.C. 78o-5(a)(1)) (each referred to as the \u201ctransacting government securities broker or dealer\u201d) under which the transacting government securities broker or dealer will offer securities services on or off the premises of the financial institution, provided that:\n\n(A) The transacting government securities broker or dealer is clearly identified to customers as the person performing the securities services;\n\n(B) Financial institution employees perform only clerical and ministerial or order-taking functions in connection with government securities transactions unless such employees are associated persons (as defined in \u00a7 400.3 of this chapter) or registered representatives of the transacting government securities broker or dealer;\n\n(C) Financial institution employees do not receive compensation for government securities activities other than clerical or ministerial functions unless such employees are associated persons (as defined in \u00a7 400.3 of this chapter) or registered representatives of the transacting government securities broker or dealer; and\n\n(D) Such services are provided on a fully disclosed basis by the transacting government securities broker or dealer, i.e., the transacting government securities broker or dealer receives and maintains all required information concerning each customer, its trading and account.\n\n(b)(1) A financial institution that relies on the exemption contained in paragraph (a) of this section is required to comply with the regulations of part 450 of this chapter concerning custodial holdings of government securities for customers.\n\n(2) A branch or agency of a foreign bank that relies on the exemption contained in paragraph (a) of this section is in addition required to comply with \u00a7 403.5(e) of this chapter.\n\n(c) For the purposes of this section \u201cfinancial institution\u201d includes an insured credit union, as defined in 12 U.S.C. 1752(7)."], ["17:17:5.0.2.1.2.0.43.4", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.4 Exemption for financial institutions engaged in limited government securities dealer activities.", "SEC", "", "", "", "(a) Subject to the requirements of paragraph (b) of this section, a financial institution shall be exempt from the provisions of sections 15C (a), (b), and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter if its government securities dealer activities are limited to one or more of the following activities:\n\n(1) Sales or purchases in a fiduciary capacity;\n\n(2) The sale and subsequent repurchase and the purchase and subsequent resale of government securities pursuant to a repurchase or reverse repurchase agreement; and\n\n(3) Such other activities as have been exempted by regulation under this subchapter.\n\n(b)(1) A financial institution that relies on the exemption contained in paragraph (a) of this section is required to comply with:\n\n(i) The regulations of part 450 of this chapter concerning custodial holdings of government securities for customers; and\n\n(ii) Section 403.5(d) of this chapter concerning certain repurchase transactions with customers.\n\n(2) A branch or agency of a foreign bank that relies on the exemption contained in paragraph (a) of this section is in addition required to comply with \u00a7 403.5(e) of this chapter.\n\n(c) For the purposes of this section \u201cfinancial institution\u201d includes an insured credit union, as defined in 12 U.S.C. 1752(7)."], ["17:17:5.0.2.1.2.0.43.5", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.5 Exemption for corporate credit unions transacting limited government securities business with other credit unions.", "SEC", "", "", "", "(a)(1) Subject to the requirements of paragraph (b) of this section, a corporate credit union shall be exempt from the provisions of section 15C (a), (b) and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations thereunder if its government securities dealer activities are limited to the sale and subsequent repurchase and the purchase and subsequent resale, each pursuant to a repurchase or reverse repurchase agreement, of government securities to other credit unions and such other activities as have been exempted by regulation under this part.\n\n(2) For the purposes of this section, \u201ccorporate credit union\u201d means a credit union whose membership consists primarily of other credit unions and that is (i) a Federal credit union as defined in 12 U.S.C. 1752(1), (ii) an insured credit union as defined in 12 U.S.C. 1752(7), or (iii) a member of the National Credit Union Administration Central Liquidity Facility.\n\n(b) A credit union that relies on the exemption contained in paragraph (a) of this section is required to comply with:\n\n(1) The regulations of part 450 of this chapter concerning custodial holdings of government securities; and\n\n(2) Section 403.5(d) concerning certain repurchase transactions with customers."], ["17:17:5.0.2.1.2.0.43.6", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.6 Exemption for branches and agencies of foreign banks that deal solely with non-United States citizens resident offshore.", "SEC", "", "", "", "(a) Subject to the requirements of paragraph (b) of this section, a branch or agency of a foreign bank shall be exempt from the provisions of section 15C (a), (b), and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter, if all the customers with or on behalf of whom it engages in government securities transactions are limited to foreign governments, agencies of foreign governments and other persons and entities who are not citizens of the United States and who reside or, in the case of a corporation, partnership or other entity, have their principal place of business, outside of the United States.\n\n(b) A branch or agency that relies on the exemption contained in paragraph (a) of this section is required to comply with the regulations of part 450 of this chapter concerning custodial holdings of government securities."], ["17:17:5.0.2.1.2.0.43.7", 17, "Commodity and Securities Exchanges", "IV", "A", "401", "PART 401\u2014EXEMPTIONS", "", "", "", "\u00a7 401.7 Exemption for certain foreign government securities brokers or dealers.", "SEC", "", "", "[55 FR 27462, July 3, 1990; 55 FR 29293, July 18, 1990, as amended at 60 FR 11026, Mar. 1, 1995; 71 FR 54411, Sept. 15, 2006. Redesignated at 79 FR 38455, July 8, 2014]", "A government securities broker or dealer (excluding a branch or agency of a foreign bank) that is a non-U.S. resident shall be exempt from the provisions of sections 15C(a), (b), and (d) of the Act (15 U.S.C. 78o-5(a), (b) and (d)) and the regulations of this subchapter provided it complies with the provisions of 17 CFR 240.15a-6 (SEC Rule 15a-6) as modified in this section.\n\n(a) For purposes of this section,  non-U.S. resident  means any person (including any U.S. person) engaged in business as a government securities broker or dealer entirely outside the U.S. that is not an office or branch of, or a natural person associated with, a registered broker or dealer, a registered government securities broker or dealer or a financial institution that has provided notice pursuant to \u00a7 400.1(d) of this chapter.\n\n(b) Within \u00a7 240.15a-6 of this title, references to \u201csecurity\u201d and \u201csecurities\u201d shall mean \u201cgovernment securities\u201d as defined in \u00a7 400.3 of this chapter.\n\n(c) Section 240.15a-6(a) of this title is modified to read as follows:\n\n\u201c(a) A foreign broker or dealer shall be exempt from the registration or notice requirements of section 15C(a)(1) of the Act to the extent that the foreign broker or dealer:\u201d\n\n(d) Paragraph 240.15a-6(a)(2)(iii) of this title is modified to read as follows:\n\n\u201c(iii) If the foreign broker or dealer has established a relationship with a registered broker or dealer for the purpose of compliance with paragraph (a)(3) of this rule, this relationship is disclosed in all research reports and all transactions with the foreign broker or dealer in securities discussed in the research reports are effected only through that registered broker or dealer, pursuant to the provisions of paragraph (a)(3); and\u201d\n\n(e) Paragraph 240.15a-6(a)(3)(i)(B) of this title is modified to read as follows:\n\n\u201c(B) Provides its appropriate regulatory agency (upon request or pursuant to agreements reached between any foreign securities authority, including any foreign government as specified in section 3(a)(50) of the Act, and the Commission or the U.S. Government) with any information, documents, or records within the possession, custody, or control of the foreign broker or dealer, any testimony of foreign associated persons, and any assistance in taking the evidence of other persons, wherever located, that the appropriate regulatory agency requests and that relates to transactions under paragraph (a)(3) of this rule, except that if, after the foreign broker or dealer has exercised its best efforts to provide this information, including requesting the appropriate governmental body and, if legally necessary, its customers (with respect to customer information) to permit the foreign broker or dealer to provide this information to its appropriate regulatory agency, the foreign broker or dealer is prohibited from providing this information by applicable foreign law or regulations, then this paragraph (a)(3)(i)(B) shall not apply and the foreign broker or dealer will be subject to paragraph (c) of this rule;\u201d\n\n(f) Paragraphs 240.15a-6(a)(3)(iii)(A) ( 4 ), ( 5 ) and ( 6 ) of this title are modified to read as follows:\n\n\u201c( 4 ) Maintaining required books and records relating to the transactions, including those required by \u00a7 404.1 of this title for registered brokers and dealers (excluding registered government securities brokers and dealers and noticed financial institutions), \u00a7\u00a7 404.2 and 404.3 of this title for registered government securities brokers or dealers, and \u00a7 404.4 of this title for noticed financial institutions;\n\n\u201c( 5 ) Complying with part 402 of this title with respect to the transactions; and\n\n\u201c( 6 ) Receiving, delivering, and safeguarding funds and securities in connection with the transactions on behalf of the U.S. institutional investor or the major U.S. institutional investor in compliance with \u00a7 403.1 of this title for registered brokers and dealers (excluding registered government securities brokers and dealers and noticed financial institutions); \u00a7\u00a7 403.2, 403.3, 403.4 and 403.6 of this title for registered government securities brokers and dealers, and \u00a7 403.5 of this title for noticed financial institutions.\u201d\n\n(g) Paragraph 240.15a-6(a)(3)(iii)(C) of this title is modified to read as follows:\n\n\u201c(C) Has obtained from the foreign broker or dealer, with respect to each foreign associated person, the types of information specified in Rule 17a-3(a)(12) under the Act (17 CFR 240.17a-3(a)(12)), provided that the information required by paragraph (a)(12)(d) of that Rule shall include sanctions imposed by foreign securities authorities, exchanges, or associations, including, without limitation, those described in paragraph (a)(3)(ii)(B) of this rule. Notwithstanding the above, a registered broker or dealer that is a noticed financial institution shall comply with the provisions of paragraphs 404.4(a)(3)(i) (B) and (C) of this title, in lieu of Rule 17a-3(a)(12), provided that the information required by paragraphs 404.4(a)(3)(i) (B) and (C) of this title shall include sanctions imposed by foreign securities authorities, exchanges, or associations, including, without limitation, those described in (a)(3)(ii)(B) of this rule;\u201d\n\n(h) Paragraph 240.15a-6(a)(3)(iii)(D) of this title is modified to read as follows:\n\n\u201c(D) Has obtained from the foreign broker or dealer and each foreign associated person written consent to service of process for any civil action brought by or proceeding before its appropriate regulatory agency or a self-regulatory organization (as defined in section 3(a)(26) of the Act), providing that process may be served on them by service on the registered broker or dealer in the manner set forth on the registered broker's or dealer's current Form BD or other appropriate procedure as specified by the appropriate regulatory agency; and\u201d\n\n(i) Paragraph 240.15a-6(a)(3)(iii)(E) of this title is modified to read as follows:\n\n\u201c(E) Maintains a written record of the information and consents required by paragraphs (a)(3)(iii) (C) and (D) of this rule, and all records in connection with trading activities of the U.S. institutional investor or the major U.S. institutional investor involving the foreign broker or dealer conducted under paragraph (a)(3) of this rule, in an office of the registered broker or dealer located in the United States (with respect to nonresident registered brokers or dealers, pursuant to Rule 17a-7(a) under the Act (17 CFR 240.17a-7(a)), provided that in Rule 17a-7(a) references to broker or dealer shall include government securities brokers or dealers, as those terms are defined in \u00a7\u00a7 400.3 of this title), and makes these records available to the appropriate regulatory agency upon request; or\u201d\n\n(j) Paragraph 240.15a-6(a)(4)(i) of this title is modified to read as follows:\n\n\u201c(i) A registered broker or dealer, whether the registered broker or dealer is acting as principal for its own account or as agent for others, or a financial institution acting pursuant to \u00a7\u00a7 401.3(a)(2)(ii) or 401.4(a)(1) of this title;\u201d\n\n(k) Paragraph 240.15a-6(b)(2) of this title is modified to read as follows:\n\n\u201c(2) The term  foreign associated person  shall mean any natural person domiciled outside the United States who is an associated person (a person associated with a government securities broker or a government securities dealer as defined in section 3(a)(45) of the Act) of the foreign broker or dealer and who participates in the solicitation of a U.S. institutional investor or a major U.S. institutional investor under paragraph (a)(3) of this rule.\u201d\n\n(l) Paragraph 240.15a-6(b)(3) of this title is modified to read as follows:\n\n\u201c(3) The term \u201cforeign broker or dealer\u201d shall mean any non-U.S. resident person (including any U.S. person engaged in business as a broker or dealer entirely outside the United States, except as otherwise permitted by this rule) that is not an office or branch of, or a natural person associated with, a registered broker or dealer, whose securities activities, if conducted in the United States, would be described by the definition of \u201cgovernment securities broker\u201d or \u201cgovernment securities dealer\u201d in sections 3(a)(43) and 3(a)(44) of the Act.\u201d\n\n(m) Paragraph 240.15a-6(b)(5) of this title is modified to read as follows:\n\n\u201c(5) Only for the purposes of this rule, the term \u201cregistered broker or dealer\u201d shall mean a person that is registered with the Commission under section 15C(a)(2) of the Act or a broker or dealer or a financial institution who has provided notice to its appropriate regulatory agency under section 15C(a)(1)(B)(ii) of the Act.\u201d\n\n(n) For the purposes of this section, \u00a7 240.15a-6(b) of this title shall include a new paragraph (8) to read as follows:\n\n\u201c(8) The term  registered government securities broker or dealer  has the meaning set out in \u00a7 400.3 of this title.\u201d\n\n(o) For the purposes of this section, 240.15a-6(b) of this title shall include a new paragraph (9) to read as follows:\n\n\u201c(9) The term  noticed financial institution  means a financial institution as defined at \u00a7 400.3 of this title that has provided notice to its appropriate regulatory agency pursuant to \u00a7 400.1(d) of this title.\u201d\n\n(p) For the purposes of this section, \u00a7 240.15a-6(b) of this title shall include a new paragraph (10) to read as follows:\n\n\u201c(10) The term  appropriate regulatory agency  has the meaning set out in \u00a7 400.3 of this title.\u201d\n\n(q) Section 240.15a-6(c) of this title is modified to read as follows:\n\n\u201c(c) The Secretary of the Treasury, upon receiving notification from an appropriate regulatory agency that the laws or regulations of a foreign country have prohibited a foreign broker or dealer, or a class of foreign brokers or dealers, engaging in activities exempted by paragraph (a)(3) of this rule, from providing, in response to a request from an appropriate regulatory agency, information, documents, or records within its possession, custody, or control, testimony of foreign associated persons, or assistance in taking the evidence of other persons, wherever located, related to activities exempted by paragraph (a)(3) of this rule, may consider to be no longer applicable the exemption provided in paragraph (a)(3) of this rule with respect to the subsequent activities of the foreign broker or dealer or class of foreign brokers or dealers if the Secretary finds that continuation of the exemption is inconsistent with the public interest, the protection of investors and the purposes of the Government Securities Act.\u201d"], ["20:20:2.0.1.1.2.1.1.1", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "A", "Subpart A\u2014General", "", "\u00a7 401.5 Purpose of the regulations.", "SSA", "", "", "", "(a)  General.  The purpose of this part is to describe the Social Security Administration (SSA) policies and procedures for implementing the requirements of the Privacy Act of 1974, 5 U.S.C. 552a and section 1106 of the Social Security Act concerning disclosure of information about individuals, both with and without their consent. This part also complies with other applicable statutes.\n\n(b)  Privacy.  This part implements the Privacy Act by establishing agency policies and procedures for the maintenance of records. This part also establishes agency policies and procedures under which you can ask us whether we maintain records about you or obtain access to your records. Additionally, this part establishes policies and procedures under which you may seek to have your record corrected or amended if you believe that your record is not accurate, timely, complete, or relevant.\n\n(c)  Disclosure.  This part also sets out the general guidelines which we follow in deciding whether to make disclosures. However, we must examine the facts of each case separately to decide if we should disclose the information or keep it confidential."], ["20:20:2.0.1.1.2.1.1.2", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "A", "Subpart A\u2014General", "", "\u00a7 401.10 Applicability.", "SSA", "", "", "", "(a)  SSA.  All SSA employees and components are governed by this part. SSA employees governed by this part include all regular and special government employees of SSA; experts and consultants whose temporary (not in excess of 1 year) or intermittent services have been procured by SSA by contract pursuant to 5 U.S.C. 3109; volunteers where acceptance of their services are authorized by law; those individuals performing gratuitous services as permitted under conditions prescribed by the Office of Personnel Management; and, participants in work-study or training programs.\n\n(b)  Other entities.  This part also applies to advisory committees and councils within the meaning of the Federal Advisory Committee Act which provide advice to: Any official or component of SSA; or the President and for which SSA has been delegated responsibility for providing services."], ["20:20:2.0.1.1.2.1.1.3", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "A", "Subpart A\u2014General", "", "\u00a7 401.15 Limitations on scope.", "SSA", "", "", "", "The regulations in this part do not\u2014\n\n(a) Make available to an individual records which are not retrieved by that individual's name or other personal identifier.\n\n(b) Make available to the general public records which are retrieved by an individual's name or other personal identifier or make available to the general public records which would otherwise not be available to the general public under the Freedom of Information Act, 5 U.S.C. 552, and part 402 of this title.\n\n(c) Govern the maintenance or disclosure of, notification about or access to, records in the possession of SSA which are subject to the regulations of another agency, such as personnel records which are part of a system of records administered by the Office of Personnel Management.\n\n(d) Apply to grantees, including State and local governments or subdivisions thereof, administering federally funded programs.\n\n(e) Make available records compiled by SSA in reasonable anticipation of court litigation or formal administrative proceedings. The availability of such records to the general public or to any subject individual or party to such litigation or proceedings shall be governed by applicable constitutional principles, rules of discovery, and applicable regulations of the agency."], ["20:20:2.0.1.1.2.1.1.4", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "A", "Subpart A\u2014General", "", "\u00a7 401.20 Scope.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 65 FR 16812, Mar. 30, 2000; 72 FR 20939, Apr. 27, 2007]", "(a)  Access.  Sections 401.30 through 401.95, which set out SSA's rules for implementing the Privacy Act, apply to records retrieved by an individual's name or personal identifier subject to the Privacy Act. The rules in \u00a7\u00a7 401.30 through 401.95 also apply to information developed by medical sources for the Social Security program and shall not be accessed except as permitted by this part.\n\n(b)  Disclosure \u2014(1)  Program records.  Regulations that apply to the disclosure of information about an individual contained in SSA's program records are set out in \u00a7\u00a7 401.100 through 401.200 of this part. These regulations also apply to the disclosure of other Federal program information which SSA maintains. That information includes:\n\n(i) Health insurance records which SSA maintains for the Health Care Financing Administration's (HCFA) programs under title XVIII of the Social Security Act. We will disclose these records to HCFA. HCFA may redisclose these records under the regulations applying to records in HCFA's custody;\n\n(ii) Black lung benefit records which SSA maintains for the administration of the Federal Coal Mine Health and Safety Act; (However, this information is not covered by section 1106 of the Social Security Act.) and\n\n(iii) Information retained by medical sources pertaining to a consultative examination performed for the Social Security program shall not be disclosed except as permitted by this part.\n\n(2)  Nonprogram records.  Section 401.110 sets out rules applicable to the disclosure of nonprogram records, e.g., SSA's administrative and personnel records."], ["20:20:2.0.1.1.2.1.1.5", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "A", "Subpart A\u2014General", "", "\u00a7 401.25 Terms defined.", "SSA", "", "", "", "Access  means making a record available to a subject individual.\n\nAct  means the Social Security Act.\n\nAgency  means the Social Security Administration.\n\nCommissioner  means the Commissioner of Social Security.\n\nDisclosure  means making a record about an individual available to or releasing it to another party.\n\nFOIA  means the Freedom of Information Act.\n\nIndividual  when used in connection with the Privacy Act or for disclosure of nonprogram records, means a living person who is a citizen of the United States or an alien lawfully admitted for permanent residence. It does not include persons such as sole proprietorships, partnerships, or corporations. A business firm which is identified by the name of one or more persons is not an individual. When used in connection with the rules governing program information,  individual  means a living natural person; this does not include corporations, partnerships, and unincorporated business or professional groups of two or more persons.\n\nInformation  means information about an individual, and includes, but is not limited to, vital statistics; race, sex, or other physical characteristics; earnings information; professional fees paid to an individual and other financial information; benefit data or other claims information; the social security number, employer identification number, or other individual identifier; address; phone number; medical information, including psychological or psychiatric information or lay information used in a medical determination; and information about marital and family relationships and other personal relationships.\n\nMaintain  means to establish, collect, use, or disseminate when used in connection with the term  record ; and, to have control over or responsibility for a system of records when used in connection with the term  system of records.\n\nNotification  means communication to an individual whether he is a subject individual. ( Subject individual  is defined further on in this section.)\n\nProgram information  means personal information and records collected and compiled by SSA in order to discharge its responsibilities under titles I, II, IV part A, X, XI, XIV, XVI and XVIII of the Act and parts B and C of the Federal Coal Mine Health and Safety Act.\n\nRecord  means any item, collection, or grouping of information about an individual that is maintained by SSA including, but not limited to, information such as an individual's education, financial transactions, medical history, and criminal or employment history that contains the individual's name, or an identifying number, symbol, or any other means by which an individual can be identified. When used in this part, record means only a record which is in a system of records.\n\nRoutine use  means the disclosure of a record outside SSA, without the consent of the subject individual, for a purpose which is compatible with the purpose for which the record was collected. It includes disclosures required to be made by statutes other than the Freedom of Information Act, 5 U.S.C. 552. It does not include disclosures which the Privacy Act otherwise permits without the consent of the subject individual and without regard to whether they are compatible with the purpose for which the information is collected, such as disclosures to the Bureau of the Census, the General Accounting Office, or to Congress.\n\nSocial Security Administration (SSA)  means (1) that Federal agency which has administrative responsibilities under titles, I, II, X, XI, XIV, XVI, and XVIII of the Act; and (2) units of State governments which make determinations under agreements made under sections 221 and 1633 of the Act.\n\nSocial Security program  means any program or provision of law which SSA is responsible for administering, including the Freedom of Information Act and Privacy Act. This includes our responsibilities under parts B and C of the Federal Coal Mine Health and Safety Act.\n\nStatistical record  means a record maintained for statistical research or reporting purposes only and not maintained to make determinations about a particular subject individual.\n\nSubject individual  means the person to whom a record pertains.\n\nSystem of records  means a group of records under our control from which information about an individual is retrieved by the name of the individual or by an identifying number, symbol, or other identifying particular. Single records or groups of records which are not retrieved by a personal identifier are not part of a system of records. Papers maintained by individual Agency employees which are prepared, maintained, or discarded at the discretion of the employee and which are not subject to the Federal Records Act, 44 U.S.C. 2901, are not part of a system of records; provided, that such personal papers are not used by the employee or the Agency to determine any rights, benefits, or privileges of individuals.\n\nWe  and  our  mean the Social Security Administration."], ["20:20:2.0.1.1.2.2.1.1", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.30 Privacy Act and other responsibilities.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20939, Apr. 27, 2007]", "(a)  Policy.  Our policy is to protect the privacy of individuals to the fullest extent possible while nonetheless permitting the exchange of records required to fulfill our administrative and program responsibilities, and responsibilities for disclosing records which the general public is entitled to have under the Freedom of Information Act, 5 U.S.C. 552, and 20 CFR part 402.\n\n(b)  Maintenance of records.  We will maintain no record unless:\n\n(1) It is relevant and necessary to accomplish an SSA function which is required to be accomplished by statute or Executive Order;\n\n(2) We obtain the information in the record, as much as it is practicable, from the subject individual if we may use the record to determine an individual's rights, benefits or privileges under Federal programs;\n\n(3) We inform the individual providing the record to us of the authority for our asking him or her to provide the record (including whether providing the record is mandatory or voluntary, the principal purpose for maintaining the record, the routine uses for the record, and what effect his or her refusal to provide the record may have on him or her). Further, the individual agrees to provide the record, if the individual is not required by statute or Executive Order to do so.\n\n(c)  First Amendment rights.  We will keep no record which describes how an individual exercises rights guaranteed by the First Amendment unless we are expressly authorized:\n\n(1) By statute,\n\n(2) By the subject individual, or\n\n(3) Unless pertinent to and within the scope of an authorized law enforcement activity.\n\n(d)  Privacy Officer.  The Privacy Officer is an advisor to the Agency on all privacy policy and disclosure matters. The Privacy Officer coordinates the development and implementation of Agency privacy policies and related legal requirements to ensure Privacy Act compliance, and monitors the coordination, collection, maintenance, use and disclosure of personal information. The Privacy Officer also ensures the integration of privacy principles into information technology systems architecture and technical designs, and generally provides to Agency officials policy guidance and directives in carrying out the privacy and disclosure policy.\n\n(e)  Senior Agency Official for Privacy.  The Senior Agency Official for Privacy assumes overall responsibility and accountability for ensuring the agency's implementation of information privacy protections as well as agency compliance with federal laws, regulations, and policies relating to the privacy of information, such as the Privacy Act. The compliance efforts also include reviewing information privacy procedures to ensure that they are comprehensive and up-to-date and, where additional or revised procedures may be called for, working with the relevant agency offices in the consideration, adoption, and implementation of such procedures. The official also ensures that agency employees and contractors receive appropriate training and education programs regarding the information privacy laws, regulations, polices and procedures governing the agency's handling of personal information. In addition to the compliance role, the official has a central policy-making role in the agency's development and evaluation of legislative, regulatory and other policy proposals which might implicate information privacy issues, including those relating to the collection, use, sharing, and disclosure of personal information.\n\n(f)  Privacy Impact Assessment.  In our comprehensive Privacy Impact Assessment (PIA) review process, we incorporate the tenets of privacy law, SSA privacy regulations, and privacy policy directly into the development of certain Information Technology projects. Our review examines the risks and ramifications of collecting, maintaining and disseminating information in identifiable form in an electronic information system and identifies and evaluates protections and alternate processes to reduce the risk of unauthorized disclosures. As we accomplish the PIA review, we ask systems personnel and program personnel to resolve questions on data needs and data protection prior to the development of the electronic system."], ["20:20:2.0.1.1.2.2.1.10", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.75 Rights of parents or legal guardians.", "SSA", "", "", "", "For purposes of this part, a parent or guardian of any minor or the legal guardian of any individual who has been declared incompetent due to physical or mental incapacity or age by a court of competent jurisdiction is authorized to act on behalf of a minor or incompetent individual. Except as provided in \u00a7 401.45, governing procedures for verifying an individual's identity, and \u00a7 401.55(c) governing special procedures for notification of or access to a minor's medical records, if you are authorized to act on behalf of a minor or legal incompetent, you will be viewed as if you were the individual or subject individual."], ["20:20:2.0.1.1.2.2.1.11", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.80 Accounting for disclosures.", "SSA", "", "", "", "(a) We will maintain an accounting of all disclosures of a record for five years or for the life of the record, whichever is longer;  except that,  we will not make accounting for:\n\n(1) Disclosures under paragraphs (a) and (b) of \u00a7 401.110; and,\n\n(2) Disclosures of your record made with your written consent.\n\n(b) The accounting will include:\n\n(1) The date, nature, and purpose of each disclosure; and\n\n(2) The name and address of the person or entity to whom the disclosure is made.\n\n(c) You may request access to an accounting of disclosures of your record. You must request access to an accounting in accordance with the procedures in \u00a7 401.40. You will be granted access to an accounting of the disclosures of your record in accordance with the procedures of this part which govern access to the related record. We may, at our discretion, grant access to an accounting of a disclosure of a record made under paragraph (g) of \u00a7 401.110."], ["20:20:2.0.1.1.2.2.1.12", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.85 Exempt systems.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 82 FR 16510, Apr. 5, 2017; 83 FR 63416, Dec. 10, 2018; 84 FR 45901, Sept. 3, 2019; 87 FR 25141, Apr. 28, 2022]", "(a)  General policy.  The Privacy Act permits certain types of specific systems of records to be exempt from some of its requirements. Our policy is to exercise authority to exempt systems of records only in compelling cases.\n\n(b)  Specific systems of records exempted.  (1) Those systems of records listed in paragraph (b)(2) of this section are exempt from the following provisions of the Act and this part:\n\n(i) 5 U.S.C. 552a(c)(3) and paragraph (c) of \u00a7 401.80 of this part which require that you be granted access to an accounting of disclosures of your record.\n\n(ii) 5 U.S.C. 552a (d) (1) through (4) and (f) and \u00a7\u00a7 401.35 through 401.75 relating to notification of or access to records and correction or amendment of records.\n\n(iii) 5 U.S.C. 552a(e)(4) (G) and (H) which require that we include information about SSA procedures for notification, access, and correction or amendment of records in the notice for the systems of records.\n\n(iv) 5 U.S.C. 552a(e)(3) and \u00a7 401.30 which require that if we ask you to provide a record to us, we must inform you of the authority for our asking you to provide the record (including whether providing the record is mandatory or voluntary, the principal purposes for maintaining the record, the routine uses for the record, and what effect your refusal to provide the record may have on you), and if you are not required by statute or Executive Order to provide the record, that you agree to provide the record. This exemption applies only to an investigatory record compiled by SSA for criminal law enforcement purposes in a system of records exempt under subsection (j)(2) of the Privacy Act to the extent that these requirements would prejudice the conduct of the investigation.\n\n(2) The following systems of records are exempt from those provisions of the Privacy Act and this part listed in paragraph (b)(1) of this section:\n\n(i) Pursuant to subsection (j)(2) of the Privacy Act, the Investigatory Material Compiled for Law Enforcement Purposes System, SSA.\n\n(ii) Pursuant to subsection (k)(2) of the Privacy Act:\n\n(A) The General Criminal Investigation Files, SSA;\n\n(B) The Criminal Investigations File, SSA; and,\n\n(C) The Program Integrity Case Files, SSA.\n\n(D) Civil and Administrative Investigative Files of the Inspector General, SSA/OIG.\n\n(E) Complaint Files and Log. SSA/OGC.\n\n(F) Anti-Harassment & Hostile Work Environment Case Tracking and Records System, SSA.\n\n(G) Social Security Administration Violence Evaluation and Reporting System, SSA.\n\n(H) Anti-Fraud System, SSA.\n\n(iii) Pursuant to subsection (k)(5) of the Privacy Act:\n\n(A) Security and Suitability Files.\n\n(B) [Reserved]\n\n(iv) Pursuant to subsection (k)(6) of the Privacy Act, the Personnel Research and Merit Promotion Test Records, SSA/DCHR/OPE.\n\n(c)  Notification of or access to records in exempt systems of records.  (1) Where a system of records is exempt as provided in paragraph (b) of this section, you may nonetheless request notification of or access to a record in that system. You should make requests for notification of or access to a record in an exempt system of records in accordance with the procedures of \u00a7\u00a7 401.35 through 401.55.\n\n(2) We will grant you notification of or access to a record in an exempt system but only to the extent such notification or access would not reveal the identity of a source who furnished the record to us under an express promise, and prior to September 27, 1975, an implied promise, that his or her identity would be held in confidence, if:\n\n(i) The record is in a system of records which is exempt under subsection (k)(2) of the Privacy Act and you have been, as a result of the maintenance of the record, denied a right, privilege, or benefit to which you would otherwise be eligible; or,\n\n(ii) The record is in a system of records which is exempt under subsection (k)(5) of the Privacy Act.\n\n(3) If we do not grant you notification of or access to a record in a system of records exempt under subsections (k) (2) and (5) of the Privacy Act in accordance with this paragraph, we will inform you that the identity of a confidential source would be revealed if we granted you notification of or access to the record.\n\n(d)  Discretionary actions by SSA.  Unless disclosure of a record to the general public is otherwise prohibited by law, we may at our discretion grant notification of or access to a record in a system of records which is exempt under paragraph (b) of this section. Discretionary notification of or access to a record in accordance with this paragraph will not be a precedent for discretionary notification of or access to a similar or related record and will not obligate us to exercise discretion to grant notification of or access to any other record in a system of records which is exempt under paragraph (b) of this section."], ["20:20:2.0.1.1.2.2.1.13", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.90 Contractors.", "SSA", "", "", "", "(a) All contracts which require a contractor to maintain, or on behalf of SSA to maintain, a system of records to accomplish an SSA function must contain a provision requiring the contractor to comply with the Privacy Act and this part.\n\n(b) A contractor and any employee of such contractor will be considered employees of SSA only for the purposes of the criminal penalties of the Privacy Act, 5 U.S.C. 552a(i), and the employee standards of conduct (see appendix A of this part) where the contract contains a provision requiring the contractor to comply with the Privacy Act and this part.\n\n(c) This section does not apply to systems of records maintained by a contractor as a result of his management discretion, e.g., the contractor's personnel records."], ["20:20:2.0.1.1.2.2.1.14", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.95 Fees.", "SSA", "", "", "", "(a)  Policy.  Where applicable, we will charge fees for copying records in accordance with the schedule set forth in this section. We may only charge fees where you request that a copy be made of the record to which you are granted access. We will not charge a fee for searching a system of records, whether the search is manual, mechanical, or electronic. Where we must copy the record in order to provide access to the record (e.g., computer printout where no screen reading is available), we will provide the copy to you without cost. Where we make a medical record available to a representative designated by you or to a physician or health professional designated by a parent or guardian under \u00a7 401.55 of this part, we will not charge a fee.\n\n(b)  Fee schedule.  Our Privacy Act fee schedule is as follows:\n\n(1) Copying of records susceptible to photocopying\u2014$.10 per page.\n\n(2) Copying records not susceptible to photocopying (e.g., punch cards or magnetic tapes)\u2014at actual cost to be determined on a case-by-case basis.\n\n(3) We will not charge if the total amount of copying does not exceed $25.\n\n(c)  Other fees.  We also follow \u00a7\u00a7 402.155 through 402.165 of this chapter to determine the amount of fees, if any, we will charge for providing information under the FOIA and Privacy Act."], ["20:20:2.0.1.1.2.2.1.2", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.35 Your right to request records.", "SSA", "", "", "", "The Privacy Act gives you the right to direct access to most records about yourself that are in our systems of records. Exceptions to this Privacy Act right include\u2014\n\n(a) Special procedures for access to certain medical records (see 5 U.S.C. 552a(f)(3) and \u00a7 401.55);\n\n(b) Unavailability of certain criminal law enforcement records (see 5 U.S.C. 552a(k), and \u00a7 401.85); and\n\n(c) Unavailability of records compiled in reasonable anticipation of a court action or formal administrative proceeding.\n\nThe Freedom of Information Act (see 20 CFR part 402) allows you to request information from SSA whether or not it is in a system of records."], ["20:20:2.0.1.1.2.2.1.3", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.40 How to get your own records.", "SSA", "", "", "", "(a)  Your right to notification and access.  Subject to the provisions governing medical records in \u00a7 401.55, you may ask for notification of or access to any record about yourself that is in an SSA system of records. If you are a minor, you may get information about yourself under the same rules as for an adult. Under the Privacy Act, if you are the parent or guardian of a minor, or the legal guardian of someone who has been declared legally incompetent, and you are acting on his or her behalf, you may ask for information about that individual. You may be accompanied by another individual of your choice when you request access to a record in person,  provided  that you affirmatively authorize the presence of such other individual during any discussion of a record to which you are requesting access.\n\n(b)  Identifying the records.  At the time of your request, you must specify which systems of records you wish to have searched and the records to which you wish to have access. You may also request copies of all or any such records. Also, we may ask you to provide sufficient particulars to enable us to distinguish between records on individuals with the same name. The necessary particulars are set forth in the notices of systems of records which are published in the  Federal Register.\n\n(c)  Requesting notification or access.  To request notification of or access to a record, you may visit your local social security office or write to the manager of the SSA system of records. The name and address of the manager of the system is part of the notice of systems of records. Every local social security office keeps a copy of the  Federal Register  containing that notice. That office can also help you get access to your record. You do not need to use any special form to ask for a record about you in our files, but your request must give enough identifying information about the record you want to enable us to find your particular record. This identifying information should include the system of records in which the record is located and the name and social security number (or other identifier) under which the record is filed. We do not honor requests for all records, all information, or similar blanket requests. Before granting notification of or access to a record, we may, if you are making your request in person, require you to put your request in writing if you have not already done so."], ["20:20:2.0.1.1.2.2.1.4", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.45 Verifying your identity.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20939, Apr. 27, 2007]", "(a)  When required.  Unless you are making a request for notification of or access to a record in person, and you are personally known to the SSA representative, you must verify your identity in accordance with paragraph (b) of this section if:\n\n(1) You make a request for notification of a record and we determine that the mere notice of the existence of the record would be a clearly unwarranted invasion of privacy if disclosed to someone other than the subject individual; or,\n\n(2) You make a request for access to a record which is not required to be disclosed to the general public under the Freedom of Information Act, 5 U.S.C. 552, and part 402 of this chapter.\n\n(b)  Manner of verifying identity \u2014(1)  Request in person.  If you make a request to us in person, you must provide at least one piece of tangible identification such as a driver's license, passport, alien or voter registration card, or union card to verify your identity. If you do not have identification papers to verify your identity, you must certify in writing that you are the individual who you claim to be and that you understand that the knowing and willful request for or acquisition of a record pertaining to an individual under false pretenses is a criminal offense.\n\n(2)  Request by telephone.  If you make a request by telephone, you must verify your identity by providing identifying particulars which parallel the record to which notification or access is being sought. If we determine that the particulars provided by telephone are insufficient, you will be required to submit your request in writing or in person. We will not accept telephone requests where an individual is requesting notification of or access to sensitive records such as medical records.\n\n(3)  Electronic requests.  If you make a request by computer or other electronic means, e.g., over the Internet, we require you to verify your identity by using identity confirmation procedures that are commensurate with the sensitivity of the information that you are requesting. If we cannot confirm your identity using our identity confirmation procedures, we will not process the electronic request. When you cannot verify your identity through our procedures, we will require you to submit your request in writing.\n\n(4)  Electronic disclosures.  When we collect or provide personally identifiable information over open networks such as the Internet, we use encryption in all of our automated online transaction systems to protect the confidentiality of the information. When we provide an online access option, such as a standard e-mail comment form on our Web site, and encryption is not being used, we alert you that personally identifiable information (such as your social security number) should not be included in your message.\n\n(5)  Requests not made in person.  Except as provided in paragraphs (b)(2) of this section, if you do not make a request in person, you must submit a written request to SSA to verify your identify or you must certify in your request that you are the individual you claim to be. You must also sign a statement that you understand that the knowing and willful request for or acquisition of a record pertaining to an individual under false pretenses is a criminal offense.\n\n(6)  Requests on behalf of another.  If you make a request on behalf of a minor or legal incompetent as authorized under \u00a7 401.40, you must verify your relationship to the minor or legal incompetent, in addition to verifying your own identity, by providing a copy of the minor's birth certificate, a court order, or other competent evidence of guardianship to SSA; except that you are not required to verify your relationship to the minor or legal incompetent when you are not required to verify your own identity or when evidence of your relationship to the minor or legal incompetent has been previously given to SSA.\n\n(7)  Medical records\u2014additional verification.  You need to further verify your identity if you are requesting notification of or access to sensitive records such as medical records. Any information for further verification must parallel the information in the record to which notification or access is being sought. Such further verification may include such particulars as the date or place of birth, names of parents, name of employer or the specific times the individual received medical treatment."], ["20:20:2.0.1.1.2.2.1.5", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.50 Granting notification of or access to a record.", "SSA", "", "", "", "(a)  General.  Subject to the provisions governing medical records in \u00a7 401.55 and the provisions governing exempt systems in \u00a7 401.85, upon receipt of your request for notification of or access to a record and verification of your identity, we will review your request and grant notification or access to a record, if you are the subject of the record.\n\n(b)  Our delay in responding.  If we determine that we will have to delay responding to your request because of the number of requests we are processing, a breakdown of equipment, shortage of personnel, storage of records in other locations, etc., we will so inform you and tell you when notification or access will be granted."], ["20:20:2.0.1.1.2.2.1.6", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.55 Access to medical records.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20939, Apr. 27, 2007]", "(a)  General.  You have a right to access your medical records, including any psychological information that we maintain.\n\n(b)  Medical records procedures \u2014(1)  Notification of or access to medical records.  (i) You may request notification of or access to a medical record pertaining to you. Unless you are a parent or guardian requesting notification of or access to a minor's medical record, you must make a request for a medical record in accordance with this section and the procedures in \u00a7\u00a7 401.45 through 401.50 of this part.\n\n(ii) When you request medical information about yourself, you must also name a representative in writing. The representative may be a physician, other health professional, or other responsible individual who will be willing to review the record and inform you of its contents. Following the discussion, you are entitled to your records. The representative does not have the discretion to withhold any part of your record. If you do not designate a representative, we may decline to release the requested information. In some cases, it may be possible to release medical information directly to you rather than to your representative.\n\n(2)  Utilization of the designated representative.  You will be granted direct access to your medical record if we can determine that direct access is not likely to have an adverse effect on you. If we believe that we are not qualified to determine, or if we do determine, that direct access to you is likely to have an adverse effect, the record will be sent to the designated representative. We will inform you in writing that the record has been sent.\n\n(c)  Medical records of minors \u2014(1)  Request by the minor.  You may request access to your own medical records in accordance with paragraph (b) of this section.\n\n(2)  Requests on a minor's behalf; notification of or access to medical records to an individual on a minor's behalf.  (i) To protect the privacy of a minor, we will not give to a parent or guardian direct notification of or access to a minor's record, even though the parent or guardian who requests such notification or access is authorized to act on a minor's behalf as provided in \u00a7 401.75 of this part.\n\n(ii) A parent or guardian must make all requests for notification of or access to a minor's medical record in accordance with this paragraph and the procedures in \u00a7\u00a7 401.45 through 401.50 of this part. A parent or guardian must at the time he or she makes a request designate a family physician or other health professional (other than a family member) to whom the record, if any, will be sent. If the parent or guardian will not designate a representative, we will decline to release the requested information.\n\n(iii) Where a medical record on the minor exists, we will in all cases send it to the physician or health professional designated by the parent or guardian. The representative will review the record, discuss its contents with the parent or legal guardian, then release the entire record to the parent or legal guardian. The representative does not have the discretion to withhold any part of the minor's record. We will respond in the following similar manner to the parent or guardian making the request: \u201cWe have completed processing your request for notification of or access to _____'s (Name of minor) medical records. Please be informed that if any medical record was found pertaining to that individual, it has been sent to your designated physician or health professional.\u201d\n\n(iv) In each case where we send a minor's medical record to a physician or health professional, we will make reasonable efforts to inform the minor that we have given the record to the representative.\n\n(3)  Requests on behalf of an incapacitated adult.  If you are the legal guardian of an adult who has been declared legally incompetent, you may receive his or her records directly."], ["20:20:2.0.1.1.2.2.1.7", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.60 Access to or notification of program records about more than one individual.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20940, Apr. 27, 2007]", "When information about more than one individual is in one record filed under your social security number, you may receive the information about you and the fact of entitlement and the amount of benefits payable to other persons based on your record. You may receive information about yourself or others, which is filed under someone else's social security number, if that information affects your entitlement to social security benefits or the amount of those benefits."], ["20:20:2.0.1.1.2.2.1.8", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.65 How to correct your record.", "SSA", "", "", "", "(a)  How to request a correction.  This section applies to all records kept by SSA (as described in \u00a7 401.5) except for records of earnings. (20 CFR 422.125 describes how to request correction of your earnings record.) You may request that your record be corrected or amended if you believe that the record is not accurate, timely, complete, relevant, or necessary to the administration of a social security program. To amend or correct your record, you should write to the manager identified in the notice of systems of records which is published in the  Federal Register  (see \u00a7 401.40(c) on how to locate this information). The staff at any social security office can help you prepare the request. You should submit any available evidence to support your request. Your request should indicate\u2014\n\n(1) The system of records from which the record is retrieved;\n\n(2) The particular record which you want to correct or amend;\n\n(3) Whether you want to add, delete or substitute information in the record; and\n\n(4) Your reasons for believing that your record should be corrected or amended.\n\n(b)  What we will not change.  You cannot use the correction process to alter, delete, or amend information which is part of a determination of fact or which is evidence received in the record of a claim in the administrative appeal process. Disagreements with these determinations are to be resolved through the SSA appeal process. (See subparts I and J of part 404, and subpart N of part 416, of this chapter.) For example, you cannot use the correction process to alter or delete a document showing a birth date used in deciding your social security claim. However, you may submit a statement on why you think certain information should be altered, deleted, or amended, and we will make this statement part of your file.\n\n(c)  Acknowledgment of correction request.  We will acknowledge receipt of a correction request within 10 working days, unless we can review and process the request and give an initial determination of denial or compliance before that time.\n\n(d)  Notice of error.  If the record is wrong, we will correct it promptly. If wrong information was disclosed from the record, we will tell all those of whom we are aware received that information that it was wrong and will give them the correct information. This will not be necessary if the change is not due to an error, e.g., a change of name or address.\n\n(e)  Record found to be correct.  If the record is correct, we will inform you in writing of the reason why we refuse to amend your record and we will also inform you of your right to seek a review of the refusal and the name and address of the official to whom you should send your request for review.\n\n(f)  Record of another government agency.  If you request us to correct or amend a record governed by the regulation of another government agency, e.g., Office of Personnel Management, Federal Bureau of Investigation, we will forward your request to such government agency for processing and we will inform you in writing of the referral."], ["20:20:2.0.1.1.2.2.1.9", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "B", "Subpart B\u2014The Privacy Act", "", "\u00a7 401.70 Appeals of refusals to correct records or refusals to allow access to records.", "SSA", "", "", "[72 FR 20940, Apr. 27, 2007, as amended at 88 FR 1329, Jan. 10, 2023]", "(a)  General.  This section describes how to appeal decisions we make under the Privacy Act concerning your request for correction of or access to your records, those of your minor child, or those of a person for whom you are the legal guardian. This section describes how to appeal decisions made by SSA under the Privacy Act concerning your request for correction of or access to your records, those of your minor child, or those of a person for whom you are the legal guardian. We generally handle a denial of your request for information about another person under the provisions of the Freedom of Information Act (see part 402 of this chapter). To appeal a decision under this section, your request must be in writing.\n\n(b)  Appeal of refusal to correct or amend records.  If we deny your request to correct an SSA record, you may request a review of that decision. As discussed in \u00a7 401.65(e), our letter denying your request will tell you to whom to write.\n\n(1) We will review your request within 30 working days from the date of the receipt. However, for a good reason and with the approval of the Executive Director for the Office of Privacy and Disclosure, we may extend this time limit up to an additional 30 days. In that case, we will notify you about the delay, the reason for it and the date when the review is expected to be completed.\n\n(2) If, after review, we determine that the record should be corrected, we will do so. However, if we refuse to amend the record as you requested, we will inform you that\u2014\n\n(i) Your request has been refused and the reason for the refusal;\n\n(ii) The refusal is our final decision; and\n\n(iii) You have a right to seek court review of our final decision.\n\n(3) We will also inform you that you have a right to file a statement of disagreement with the decision. Your statement should include the reason you disagree. We will make your statement available to anyone to whom the record is subsequently disclosed, together with a statement of our reasons for refusing to amend the record. Also, we will provide a copy of your statement to individuals whom we are aware received the record previously.\n\n(c)  Appeals after denial of access.  If, under the Privacy Act, we deny your request for access to your own record, those of your minor child or those of a person to whom you are the legal guardian, we will advise you in writing of the reason for that denial, the name and title or position of the person responsible for the decision and your right to appeal that decision. You may appeal the denial decision to the Office of the General Counsel, Office of Privacy and Disclosure, Social Security Administration, Attn: Executive Director, 6401 Security Boulevard, Baltimore, MD 21235, within 30 days after you receive notice denying all or part of your request, or, if later, within 30 days after you receive materials sent to you in partial compliance with your request.\n\n(d)  Filing your appeal.  If you file an appeal, the Executive Director or his or her designee will review your request and any supporting information submitted and then send you a notice explaining the decision on your appeal. The time limit for making our decision after we receive your appeal is 30 working days. The Executive Director or his or her designee may extend this time limit up to 30 additional working days if one of the circumstances in 20 CFR 402.140 is met. We will notify you in writing of any extension, the reason for the extension and the date by which we will decide your appeal. The notice of the decision on your appeal will explain your right to have the matter reviewed in a Federal district court if you disagree with all or part of our decision."], ["20:20:2.0.1.1.2.3.1.1", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.100 Disclosure of records with the written consent of the subject of the record.", "SSA", "", "", "[72 FR 20940, Apr. 27, 2007]", "(a)  General.  Except as permitted by the Privacy Act and the regulations in this part, or when required by the FOIA, we will not disclose your records without your written consent.\n\n(b)  Disclosure with written consent.  The written consent must clearly specify to whom the information may be disclosed, the information you want us to disclose (e.g., social security number, date and place of birth, monthly Social Security benefit amount, date of entitlement), and, where applicable, during which timeframe the information may be disclosed (e.g., during the school year, while the subject individual is out of the country, whenever the subject individual is receiving specific services).\n\n(c)  Disclosure of the entire record.  We will not disclose your entire record. For example, we will not honor a blanket consent for all information in a system of records or any other record consisting of a variety of data elements. We will disclose only the information you specify in the consent. We will verify your identity and where applicable (e.g., where you consent to disclosure of a record to a specific individual), the identity of the individual to whom the record is to be disclosed.\n\n(d) A parent or guardian of a minor is not authorized to give written consent to a disclosure of a minor's medical record. See \u00a7 401.55(c)(2) for the procedures for disclosure of or access to medical records of minors."], ["20:20:2.0.1.1.2.3.1.10", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.145 Safeguards against unauthorized redisclosure or use.", "SSA", "", "", "", "(a) The FOIA does not authorize us to impose any restrictions on how information is used after we disclose it under that law. In applying FOIA principles, we consider whether the information will be adequately safeguarded against improper use or redisclosure. We must consider all the ways in which the recipient might use the information and how likely the recipient is to redisclose the information to other parties. Thus, before we disclose personal information we may consider such factors as\u2014\n\n(1) Whether only those individuals who have a need to know the information will obtain it;\n\n(2) Whether appropriate measures to safeguard the information to avoid unwarranted use or misuse will be taken; and\n\n(3) Whether we would be permitted to conduct on-site inspections to see whether the safeguards are being met.\n\n(b) We feel that there is a strong public interest in sharing information with other agencies with programs having the same or similar purposes, so we generally share information with those agencies. However, since there is usually little or no public interest in disclosing information for disputes between two private parties or for other private or commercial purposes, we generally do not share information for these purposes."], ["20:20:2.0.1.1.2.3.1.11", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.150 Compatible purposes.", "SSA", "", "", "[72 FR 20941, Apr. 27, 2007]", "(a)  General.  The Privacy Act allows us to disclose information maintained in a system of records without your consent to any other party if such disclosure is pursuant to a routine use published in the system's notice of system of records. A \u201cRoutine use\u201d must be compatible with the purpose for which SSA collected the information.\n\n(b)  Notice of routine use disclosures.  A list of permissible routine use disclosures is included in every system of records notice published in the  Federal Register.\n\n(c)  Determining compatibility \u2014(1)  Disclosure to carry out SSA programs.  We disclose information for published routine uses necessary to carry out SSA's programs.\n\n(2)  Disclosure to carry out programs similar to SSA programs.  We may disclose information for the administration of other government programs. These disclosures are pursuant to published routine uses where the use is compatible with the purpose for which the information was collected. These programs generally meet the following conditions:\n\n(i) The program is clearly identifiable as a Federal, State, or local government program.\n\n(ii) The information requested concerns eligibility, benefit amounts, or other matters of benefit status in a Social Security program and is relevant to determining the same matters in the other program. For example, we disclose information to the Railroad Retirement Board for pension and unemployment compensation programs, to the Department of Veterans Affairs for its benefit programs, to worker's compensation programs, to State general assistance programs and to other income maintenance programs at all levels of government. We also disclose for health maintenance programs like Medicaid and Medicare.\n\n(iii) The information will be used for appropriate epidemiological or similar research purposes."], ["20:20:2.0.1.1.2.3.1.12", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.155 Law enforcement purposes.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20941, Apr. 27, 2007]", "(a)  General.  The Privacy Act allows us to disclose information for law enforcement purposes under certain conditions. Much of the information in our files is especially sensitive or very personal. Furthermore, participation in social security programs is mandatory, so people cannot limit what information is given to us. Therefore, we generally disclose information for law enforcement purposes only in limited situations. The Privacy Act allows us to disclose information if the head of the law enforcement agency makes a written request giving enough information to show that the conditions in paragraphs (b) or (c) of this section are met, what information is needed, and why it is needed. Paragraphs (b) and (c) of this section discuss the disclosures we generally make for these purposes.\n\n(b)  Serious crimes.  SSA may disclose information for criminal law enforcement purposes where a violent crime such as murder or kidnapping has been committed and the individual about whom the information is being sought has been indicted or convicted of that crime.\n\n(c)  Criminal activity involving the social security program or another program with the same purposes.  We disclose information when necessary to investigate or prosecute fraud or other criminal activity involving the social security program. We may also disclose information for investigation or prosecution of criminal activity in other income-maintenance or health-maintenance programs (e.g., other governmental pension programs, unemployment compensation, general assistance, Medicare or Medicaid) if the information concerns eligibility, benefit amounts, or other matters of benefit status in a social security program and is relevant to determining the same matters in the other program."], ["20:20:2.0.1.1.2.3.1.13", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.160 Health or safety.", "SSA", "", "", "", "The Privacy Act allows us to disclose information in compelling circumstances where an individual's health or safety is affected. For example, if we learn that someone has been exposed to an excessive amount of radiation, we may notify that person and appropriate health officials. If we learn that someone has made a threat against someone else, we may notify that other person and law enforcement officials. When we make these disclosures, the Privacy Act requires us to send a notice of the disclosure to the last known address of the person whose record was disclosed."], ["20:20:2.0.1.1.2.3.1.14", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.165 Statistical and research activities.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20941, Apr. 27, 2007]", "(a)  General.  Statistical and research activities often do not require information in a format that identifies specific individuals. Therefore, whenever possible, we release information for statistical or research purposes only in the form of aggregates or individual data that cannot be associated with a particular individual. The Privacy Act allows us to release records if there are safeguards that the record will be used solely as a statistical or research record and the individual cannot be identified from any information in the record.\n\n(b)  Safeguards for disclosure with identifiers.  The Privacy Act also allows us to disclose data for statistical and research purposes in a form allowing individual identification, pursuant to published routine use, when the purpose is compatible with the purpose for which the record was collected. We will disclose personally identifiable information for statistical and research purposes if\u2014\n\n(1) We determine that the requestor needs the information in an identifiable form for a statistical or research activity, will use the information only for that purpose, and will protect individuals from unreasonable and unwanted contacts;\n\n(2) The activity is designed to increase knowledge about present or alternative Social Security programs or other Federal or State income-maintenance or health-maintenance programs; or is used for research that is of importance to the Social Security program or the Social Security beneficiaries; or an epidemiological research project that relates to the Social Security program or beneficiaries; and\n\n(3) The recipient will keep the information as a system of statistical records, will follow appropriate safeguards, and agrees to our on-site inspection of those safeguards so we can be sure the information is used or redisclosed only for statistical or research purposes. No redisclosure of the information may be made without SSA's approval.\n\n(c)  Statistical record.  A statistical record is a record in a system of records which is maintained only for statistical and research purposes, and which is not used to make any determination about an individual. We maintain and use statistical records only for statistical and research purposes. We may disclose a statistical record if the conditions in paragraph (b) of this section are met.\n\n(d)  Compiling of records.  Where a request for information for statistical and research purposes would require us to compile records, and doing that would be administratively burdensome to ongoing SSA operations, we may decline to furnish the information."], ["20:20:2.0.1.1.2.3.1.15", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.170 Congress.", "SSA", "", "", "", "(a) We disclose information to either House of Congress. We also disclose information to any committee or subcommittee of either House, or to any joint committee of Congress or subcommittee of that committee, if the information is on a matter within the committee's or subcommittee's jurisdiction.\n\n(b) We disclose to any member of Congress the information needed to respond to constituents' requests for information about themselves (including requests from parents of minors, or legal guardians). However, these disclosures are subject to the restrictions in \u00a7\u00a7 401.35 through 401.60."], ["20:20:2.0.1.1.2.3.1.16", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.175 Government Accountability Office.", "SSA", "", "", "[72 FR 20941, Apr. 27, 2007]", "We disclose information to the Government Accountability Office when that agency needs the information to carry out its duties."], ["20:20:2.0.1.1.2.3.1.17", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.180 Disclosure under court order or other legal process.", "SSA", "", "", "[72 FR 20941, Apr. 27, 2007]", "(a)  General.  The Privacy Act permits us to disclose information when we are ordered to do so by a court of competent jurisdiction. When information is used in a court proceeding, it usually becomes part of the public record of the proceeding and its confidentiality often cannot be protected in that record. Much of the information that we collect and maintain in our records on individuals is especially sensitive. Therefore, we follow the rules in paragraph (d) of this section in deciding whether we may disclose information in response to an order from a court of competent jurisdiction. When we disclose pursuant to an order from a court of competent jurisdiction, and the order is a matter of public record, the Privacy Act requires us to send a notice of the disclosure to the last known address of the person whose record was disclosed.\n\n(b)  Court.  For purposes of this section, a court is an institution of the judicial branch of the U.S. Federal government consisting of one or more judges who seek to adjudicate disputes and administer justice. (See 404.2(c)(6) of this chapter). Entities not in the judicial branch of the Federal government are not courts for purposes of this section.\n\n(c)  Court order.  For purposes of this section, a court order is any legal process which satisfies all of the following conditions:\n\n(1) It is issued under the authority of a Federal court;\n\n(2) A judge or a magistrate judge of that court signs it;\n\n(3) It commands SSA to disclose information; and\n\n(4) The court is a court of competent jurisdiction.\n\n(d)  Court of competent jurisdiction.  It is the view of SSA that under the Privacy Act the Federal Government has not waived sovereign immunity, which precludes state court jurisdiction over a Federal agency or official. Therefore, SSA will not honor state court orders as a basis for disclosure. State court orders will be treated in accordance with the other provisions of this part.\n\n(e)  Conditions for disclosure under a court order of competent jurisdiction.  We disclose information in compliance with an order of a court of competent jurisdiction if\u2014\n\n(1) another section of this part specifically allows such disclosure, or\n\n(2) SSA, the Commissioner of Social Security, or any officer or employee of SSA in his or her official capacity is properly a party in the proceeding, or\n\n(3) disclosure of the information is necessary to ensure that an individual who is accused of criminal activity receives due process of law in a criminal proceeding under the jurisdiction of the judicial branch of the Federal government.\n\n(f)  In other circumstances.  We may disclose information to a court of competent jurisdiction in circumstances other than those stated in paragraph (e) of this section. We will make our decision regarding disclosure by balancing the needs of a court while preserving the confidentiality of information. For example, we may disclose information under a court order that restricts the use and redisclosure of the information by the participants in the proceeding; we may offer the information for inspection by the court  in camera  and under seal; or we may arrange for the court to exclude information identifying individuals from that portion of the record of the proceedings that is available to the public. We will make these determinations in accordance with \u00a7 401.140.\n\n(g)  Other regulations on request for testimony, subpoenas and production of records in legal proceedings.  See 20 CFR part 403 of this chapter for additional rules covering disclosure of information and records governed by this part and requested in connection with legal proceedings."], ["20:20:2.0.1.1.2.3.1.18", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.185 Other specific recipients.", "SSA", "", "", "", "In addition to disclosures we make under the routine use provision, we also release information to\u2014\n\n(a) The Bureau of the Census for purposes of planning or carrying out a census, survey, or related activity; and\n\n(b) The National Archives of the United States if the record has sufficient historical or other value to warrant its continued preservation by the United States Government. We also disclose a record to the Administrator of General Services for a determination of whether the record has such a value."], ["20:20:2.0.1.1.2.3.1.19", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.190 Deceased persons.", "SSA", "", "", "", "We do not consider the disclosure of information about a deceased person to be a clearly unwarranted invasion of that person's privacy. However, in disclosing information about a deceased person, we follow the principles in \u00a7 401.115 to insure that the privacy rights of a living person are not violated."], ["20:20:2.0.1.1.2.3.1.2", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.105 Disclosure of personal information without the consent of the subject of the record.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20940, Apr. 27, 2007]", "(a) SSA maintains two categories of records which contain personal information:\n\n(1) Nonprogram records, primarily administrative and personnel records which contain information about SSA's activities as a government agency and employer, and\n\n(2) Program records which contain information about SSA's clients that it keeps to administer benefit programs under Federal law.\n\n(b) We apply different levels of confidentiality to disclosures of information in the categories in paragraphs (a) (1) and (2) of this section. For administrative and personnel records, the Privacy Act applies. To the extent that SSA has physical custody of personnel records maintained as part of the Office of Personnel Management's (OPM) Privacy Act government-wide systems of records, these records are subject to OPM's rules on access and disclosure at 5 CFR parts 293 and 297. For program records, we apply somewhat more strict confidentiality standards than those found in the Privacy Act. The reason for this difference in treatment is that our program records include information about a much greater number of persons than our administrative records, the information we must collect for program purposes is often very sensitive, and claimants are required by statute and regulation to provide us with the information in order to establish entitlement for benefits."], ["20:20:2.0.1.1.2.3.1.20", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.195 Situations not specified in this part.", "SSA", "", "", "", "If no other provision in this part specifically allows SSA to disclose information, the Commissioner or designee may disclose this information if not prohibited by Federal law. For example, the Commissioner or designee may disclose information necessary to respond to life threatening situations."], ["20:20:2.0.1.1.2.3.1.21", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.200 Blood donor locator service.", "SSA", "", "", "", "(a)  General.  We will enter into arrangements with State agencies under which we will furnish to them at their request the last known personal mailing addresses (residence or post office box) of blood donors whose blood donations show that they are or may be infected with the human immunodeficiency virus which causes acquired immune deficiency syndrome. The State agency or other authorized person, as defined in paragraph (b) of this section, will then inform the donors that they may need medical care and treatment. The safeguards that must be used by authorized persons as a condition to receiving address information from the Blood Donor Locator Service are in paragraph (g) of this section, and the requirements for a request for address information are in paragraph (d) of this section.\n\n(b)  Definitions. State  means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Commonwealth of Northern Marianas, and the Trust Territory of the Pacific Islands.\n\nAuthorized person  means\u2014\n\n(1) Any agency of a State (or of a political subdivision of a State) which has duties or authority under State law relating to the public health or otherwise has the duty or authority under State law to regulate blood donations; and\n\n(2) Any entity engaged in the acceptance of blood donations which is licensed or registered by the Food and Drug Administration in connection with the acceptance of such blood donations, and which provides for\u2014\n\n(i) The confidentiality of any address information received pursuant to the rules in this part and section 1141 of the Social Security Act and related blood donor records;\n\n(ii) Blood donor notification procedures for individuals with respect to whom such information is requested and a finding has been made that they are or may be infected with the human immunodeficiency virus; and\n\n(iii) Counseling services for such individuals who have been found to have such virus. New counseling programs are not required, and an entity may use existing counseling programs or referrals to provide these services.\n\nRelated blood donor records  means any record, list, or compilation established in connection with a request for address information which indicates, directly or indirectly, the identity of any individual with respect to whom a request for address information has been made pursuant to the rules in this part.\n\n(c)  Use of social security number for identification.  A State or an authorized person in the State may require a blood donor to furnish his or her social security number when donating blood. The number may then be used by an authorized person to identify and locate a donor whose blood donation indicates that he or she is or may be infected with the human immunodeficiency virus.\n\n(d)  Request for address of blood donor.  An authorized person who has been unable to locate a blood donor at the address he or she may have given at the time of the blood donation may request assistance from the State agency which has arranged with us to participate in the Blood Donor Locator Service. The request to the Blood Donor Locator Service must\u2014\n\n(1) Be in writing;\n\n(2) Be from a participating State agency either on its own behalf as an authorized person or on behalf of another authorized person;\n\n(3) Indicate that the authorized person meets the confidentiality safeguards of paragraph (g) of this section; and\n\n(4) Include the donor's name and social security number, the addresses at which the authorized person attempted without success to contact the donor, the date of the blood donation if available, a statement that the donor has tested positive for the human immunodeficiency virus according to the latest Food and Drug Administration standards or that the history of the subsequent use of the donated blood or blood products indicates that the donor has or may have the human immunodeficiency virus, and the name and address of the requesting blood donation facility.\n\n(e)  SSA response to request for address.  After receiving a request that meets the requirements of paragraph (d) of this section, we will search our records for the donor's latest personal mailing address. If we do not find a current address, we will request that the Internal Revenue Service search its tax records and furnish us any personal mailing address information from its files, as required under section 6103(m)(6) of the Internal Revenue Code. After completing these searches, we will provide to the requesting State agency either the latest mailing address available for the donor or a response stating that we do not have this information. We will then destroy the records or delete all identifying donor information related to the request and maintain only the information that we will need to monitor the compliance of authorized persons with the confidentiality safeguards contained in paragraph (g) of this section.\n\n(f)  SSA refusal to furnish address.  If we determine that an authorized person has not met the requirements of paragraphs (d) and (g) of this section, we will not furnish address information to the State agency. In that case, we will notify the State agency of our determination, explain the reasons for our determination, and explain that the State agency may request administrative review of our determination. The Commissioner of Social Security or a delegate of the Commissioner will conduct this review. The review will be based on the information of record and there will not be an opportunity for an oral hearing. A request for administrative review, which may be submitted only by a State agency, must be in writing. The State agency must send its request for administrative review to the Commissioner of Social Security, 6401 Security Boulevard, Baltimore, MD 21235, within 60 days after receiving our notice refusing to give the donor's address. The request for review must include supporting information or evidence that the requirements of the rules in this part have been met. If we do not furnish address information because an authorized person failed to comply with the confidentiality safeguards of paragraph (g) of this section, the State agency will have an opportunity to submit evidence that the authorized person is now in compliance. If we then determine, based on our review of the request for administrative review and the supporting evidence, that the authorized person meets the requirements of the rules in this part, we will respond to the address request as provided in paragraph (e) of this section. If we determine on administrative review that the requirements have not been met, we will notify the State agency in writing of our decision. We will make our determination within 30 days after receiving the request for administrative review, unless we notify the State agency within this 30-day time period that we will need additional time. Our determination on the request for administrative review will give the findings of fact, the reasons for the decision, and what actions the State agency should take to ensure that it or the blood donation facility is in compliance with the rules in this part.\n\n(g)  Safeguards to ensure confidentiality of blood donor records.  We will require assurance that authorized persons have established and continue to maintain adequate safeguards to protect the confidentiality of both address information received from the Blood Donor Locator Service and related blood donor records. The authorized person must, to the satisfaction of the Secretary\u2014\n\n(1) Establish and maintain a system for standardizing records which includes the reasons for requesting the addresses of blood donors, dates of the requests, and any disclosures of address information;\n\n(2) Store blood donors' addresses received from the Blood Donor Locator Service and all related blood donor records in a secure area or place that is physically safe from access by persons other than those whose duties and responsibilities require access;\n\n(3) Restrict access to these records to authorized employees and officials who need them to perform their official duties related to notifying blood donors who are or may be infected with the human immunodeficiency virus that they may need medical care and treatment;\n\n(4) Advise all personnel who will have access to the records of the confidential nature of the information, the safeguards required to protect the information, and the civil and criminal sanctions for unauthorized use or disclosure of the information;\n\n(5) Destroy the address information received from the Blood Donor Locator Service, as well as any records established in connection with the request which indicate directly or indirectly the identity of the individual, after notifying or attempting to notify the donor at the address obtained from the Blood Donor Locator Service; and\n\n(6) Upon request, report to us the procedures established and utilized to ensure the confidentiality of address information and related blood donor records. We reserve the right to make onsite inspections to ensure that these procedures are adequate and are being followed and to request such information as we may need to ensure that the safeguards required in this section are being met.\n\n(h)  Unauthorized disclosure.  Any official or employee of the Federal Government, a State, or a blood donation facility who discloses blood donor information, except as provided for in this section or under a provision of law, will be subject to the same criminal penalty as provided in section 7213(a) of the Internal Revenue Code of 1986 for the unauthorized disclosure of tax information."], ["20:20:2.0.1.1.2.3.1.3", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.110 Disclosure of personal information in nonprogram records without the consent of the subject of the record.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20940, Apr. 27, 2007]", "The disclosures listed in this section may be made from our nonprogram records, e.g., administrative and personnel records, without your consent. Such disclosures are those:\n\n(a) To officers and employees of SSA who have a need for the record in the performance of their duties. The SSA official who is responsible for the record may upon request of any officer or employee, or on his own initiative, determine what constitutes legitimate need.\n\n(b) Required to be disclosed under the Freedom of Information Act, 5 U.S.C. 552, and 20 CFR part 402.\n\n(c) For a routine use as defined in \u00a7 401.25 of this part. Routine uses will be listed in any notice of a system of records. SSA publishes notices of systems of records, including all pertinent routine uses, in the  Federal Register.\n\n(d) To the Bureau of the Census for purposes of planning or carrying out a census or survey or related activity pursuant to the provisions of Title 13 U.S.C.\n\n(e) To a recipient who has provided us with advance written assurance that the record will be used solely as a statistical research or reporting record;  Provided,  that, the record is transferred in a form that does not identify the subject individual.\n\n(f) To the National Archives of the United States as a record which has sufficient historical or other value to warrant its continued preservation by the United States Government, or for evaluation by the Administrator of General Services or his designee to determine whether the record has such value.\n\n(g) To another government agency or to an instrumentality of any governmental jurisdiction within or under the control of the United States for a civil or criminal law enforcement activity if the activity is authorized by law, and if the head of such government agency or instrumentality has submitted a written request to us, specifying the record desired and the law enforcement activity for which the record is sought.\n\n(h) To an individual pursuant to a showing of compelling circumstances affecting the health or safety of any individual if a notice of the disclosure is transmitted to the last known address of the subject individual.\n\n(i) To either House of Congress, or to the extent of matter within its jurisdiction, any committee or subcommittee thereof, any joint committee of Congress or subcommittee of any such joint committee.\n\n(j) To the Comptroller General, or any of his authorized representatives, in the course of the performance of duties of the Government Accountability Office.\n\n(k) Pursuant to the order of a court of competent jurisdiction."], ["20:20:2.0.1.1.2.3.1.4", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.115 Disclosure of personal information in program records without the consent of the subject of the record.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20940, Apr. 27, 2007]", "This section describes how various laws control the disclosure of personal information that we keep. We disclose information in the program records only when a legitimate need exists. For example, we disclose information to officers and employees of SSA who have a need for the record in the performance of their duties. We also must consider the laws identified below in the respective order when we disclose program information:\n\n(a) Some laws require us to disclose information (\u00a7 401.120); some laws require us to withhold information (\u00a7 401.125). These laws control whenever they apply.\n\n(b) If no law of this type applies in a given case, then we must look to FOIA principles. See \u00a7 401.130.\n\n(c) When FOIA principles do not require disclosure, we may disclose information if both the Privacy Act and section 1106 of the Social Security Act permit the disclosure."], ["20:20:2.0.1.1.2.3.1.5", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.120 Disclosures required by law.", "SSA", "", "", "[62 FR 4143, Jan. 29, 1997, as amended at 72 FR 20941, Apr. 27, 2007]", "We disclose information when a law specifically requires it. The Social Security Act requires us to disclose information for certain program purposes. These include disclosures to the SSA Office of Inspector General, the Federal Parent Locator Service, and to States pursuant to an arrangement regarding use of the Blood Donor Locator Service. Also, there are other laws which require that we furnish other agencies information which they need for their programs. These agencies include the Department of Veterans Affairs for its benefit programs, U.S. Citizenship and Immigration Services to carry out its duties regarding aliens, the Railroad Retirement Board for its benefit programs, and to Federal, State and local agencies administering Temporary Assistance for Needy Families, Medicaid, unemployment compensation, food stamps, and other programs."], ["20:20:2.0.1.1.2.3.1.6", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.125 Disclosures prohibited by law.", "SSA", "", "", "", "We do not disclose information when a law specifically prohibits it. The Internal Revenue Code generally prohibits us from disclosing tax return information which we receive to maintain individual earnings records. This includes, for example, amounts of wages and contributions from employers. Other laws restrict our disclosure of certain information about drug and alcohol abuse which we collect to determine eligibility for social security benefits."], ["20:20:2.0.1.1.2.3.1.7", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.130 Freedom of Information Act.", "SSA", "", "", "", "The FOIA requires us to disclose any information in our records upon request from the public, unless one of several exemptions in the FOIA applies. When the FOIA requires disclosure (see part 402 of this chapter), the Privacy Act permits it.  The public  does not include Federal agencies, courts, or the Congress, but does include State agencies, individuals, corporations, and most other parties. The FOIA does not apply to requests that are not from  the public  (e.g., from a Federal agency). However, we apply FOIA principles to requests from these other sources for disclosure of program information."], ["20:20:2.0.1.1.2.3.1.8", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.135 Other laws.", "SSA", "", "", "", "When the FOIA does not apply, we may not disclose any personal information unless both the Privacy Act and section 1106 of the Social Security Act permit the disclosure. Section 1106 of the Social Security Act requires that disclosures which may be made must be set out in statute or regulations; therefore, any disclosure permitted by this part is permitted by section 1106."], ["20:20:2.0.1.1.2.3.1.9", 20, "Employees' Benefits", "III", "", "401", "PART 401\u2014PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION", "C", "Subpart C\u2014Disclosure of Official Records and Information", "", "\u00a7 401.140 General principles.", "SSA", "", "", "", "When no law specifically requiring or prohibiting disclosure applies to a question of whether to disclose information, we follow FOIA principles to resolve that question. We do this to insure uniform treatment in all situations. The FOIA principle which most often applies to SSA disclosure questions is whether the disclosure would result in a \u201cclearly unwarranted invasion of personal privacy.\u201d To decide whether a disclosure would be a clearly unwarranted invasion of personal privacy we consider\u2014\n\n(a) The sensitivity of the information (e.g., whether individuals would suffer harm or embarrassment as a result of the disclosure);\n\n(b) The public interest in the disclosure;\n\n(c) The rights and expectations of individuals to have their personal information kept confidential;\n\n(d) The public's interest in maintaining general standards of confidentiality of personal information; and\n\n(e) The existence of safeguards against unauthorized redisclosure or use."], ["24:24:2.1.3.5.2.1.221.1", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "A", "Subpart A\u2014General Provisions; Eligibility", "", "\u00a7 401.1 What is the purpose of part 401?", "HUD", "", "", "", "This part contains the regulations implementing the authority in the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) for the Mark-to-Market Program. Section 511(b) of MAHRA details the purposes, and section 512(2) details the scope, of the Program."], ["24:24:2.1.3.5.2.1.221.2", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "A", "Subpart A\u2014General Provisions; Eligibility", "", "\u00a7 401.2 What special definitions apply to this part?", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000; 71 FR 2120, Jan. 12, 2006; 72 FR 66038, Nov. 26, 2007]", "(a)  MAHRA  means the Multifamily Assisted Housing Reform and Affordability Act of 1997, title V of Pub. L. 105-65, 42 U.S.C. 1437f note.\n\n(b)  Statutory terms.  Terms defined in section 512 of MAHRA are used in this part in accordance with their statutory meaning. These terms are: comparable properties, expiring contract, expiration date, fair market rent, mortgage restructuring and rental assistance sufficiency plan, nonprofit organization, qualified mortgagee, portfolio restructuring agreement, participating administrative entity, project-based assistance, renewal, State, tenant-based assistance, and unit of general local government.\n\n(c)  Other terms.  As used in this part, the term\u2014\n\nAffiliate  means an \u201caffiliate of the owner\u201d or an \u201caffiliate of the purchaser\u201d, as such terms are defined in section 516(a) of MAHRA.\n\nApplicable Federal rate  has the meaning given in section 1274(d) of the Internal Revenue Code of 1986, 26 U.S.C. 1274(d).\n\nCommunity-based nonprofit organization  means a nonprofit organization that maintains at least one-third of its governing board's membership for low-income tenants from the local community, or for elected representatives of community organizations that represent low-income tenants.\n\nComparable market rents  has the meaning given in \u00a7 401.410(b).\n\nDisabled family  has the meaning given in \u00a7 5.403(b) of this title.\n\nElderly family  has the meaning given in \u00a7 5.403(b) of this title.\n\nEligible project  means a project that meets the requirements for eligibility for a Restructuring Plan in \u00a7 401.100.\n\nHUD  means a HUD official authorized to act under the provisions of MAHRA, and otherwise has the meaning given in \u00a7 5.100 of this title.\n\nNHA  means the National Housing Act, 12 U.S.C. 1702  et seq.\n\nOAHP  means the Office of Affordable Housing Preservation, and any successor office.\n\nOwner  means the owner of a project and any purchaser of the project.\n\nPAE  means a participating administrative entity as defined in section 512(10) of MAHRA, or HUD when appropriate in accordance with section 513(b)(4) of MAHRA.\n\nPCA  means a physical condition assessment of a project prepared by a PAE under \u00a7 401.451.\n\nPRA  means a portfolio restructuring agreement as defined in section 512(9) of MAHRA.\n\nPriority purchaser  means a purchaser of a project, meeting qualifications established by HUD, that is:\n\n(1) A tenant organization;\n\n(2) A tenant-endorsed community-based nonprofit organization or public agency; or\n\n(3) A limited partnership with a sole general partner that itself is a priority purchaser under this definition.\n\nRental Assistance Assessment Plan  means the plan described in section 515(c)(2) of MAHRA.\n\nRestructured rent  means the rent determined at the time of restructuring in accordance with section 514(g) of MAHRA.\n\nRestructuring Plan  or  Plan  means the Mortgage Restructuring and Rental Assistance Sufficiency Plan described in section 514 of MAHRA.\n\nSection 8  means section 8 of the United States Housing Act of 1937, 42 U.S.C. 1437f.\n\nSection 541(b) claim  means a claim paid by HUD under an insurance contract under authority of section 541(b) of the National Housing Act, 12 U.S.C. 1735f-19(b).\n\nTenant organization  of a project means an organization that meets regularly, whose officers are elected by a majority of heads of households of occupied units in the project, and whose membership is open to all tenants of the project.\n\nUnit of local government  means the smallest unit of general local government in which the project is located.\n\nVoucher  means any tenant-based assistance.\n\n(d)  Conflicts of interest.  Additional definitions applicable to \u00a7\u00a7 401.310 through 401.313 appear in \u00a7 401.310."], ["24:24:2.1.3.5.2.1.221.3", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "A", "Subpart A\u2014General Provisions; Eligibility", "", "\u00a7 401.3 Who may waive provisions in this part?", "HUD", "", "", "[68 FR 3363, Jan. 23, 2003]", "The Assistant Secretary for Housing-Federal Housing Commissioner may waive any provision of this part, subject to \u00a7 5.110 of this title."], ["24:24:2.1.3.5.2.1.221.4", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "A", "Subpart A\u2014General Provisions; Eligibility", "", "\u00a7 401.99 How does an owner request a section 8 contract renewal?", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  Requesting Restructuring Plan.  An owner may request a section 8 contract renewal as part of a Restructuring Plan by, at least 3 months before the expiration date of any project-based assistance, certifying to HUD that to the best of the owner's knowledge:\n\n(1) Project rents are above comparable market rents; and\n\n(2) The owner is not suspended or debarred or has been notified by HUD of any pending suspension or debarment or other enforcement action, or, if so, a voluntary sale or transfer of the property is proposed in accordance with \u00a7 401.480.\n\n(b)  Eligible but not requesting Restructuring Plan.  If an owner is eligible for a Restructuring Plan but requests a renewal of project-based assistance without a Plan, in accordance with the applicable requirements in \u00a7 402.6 of this chapter, HUD will consider the request in accordance with \u00a7 402.4(a)(2) of this chapter.\n\n(c)  Not eligible for Restructuring Plan.  Section 402.5 of this chapter addresses renewal of project-based assistance for a Restructuring Plan. An owner of such a project may also request renewal under \u00a7 402.4 of this chapter."], ["24:24:2.1.3.5.2.1.221.5", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "A", "Subpart A\u2014General Provisions; Eligibility", "", "\u00a7 401.100 Which projects are eligible for a Restructuring Plan under this part?", "HUD", "", "", "[71 FR 2121, Jan. 12, 2006]", "(a)  What are the requirements for eligibility?  To be eligible for a Restructuring Plan under this part, a project must:\n\n(1) Have a mortgage insured or held by HUD;\n\n(2) Be covered in whole or in part by a contract for project-based assistance under\u2014\n\n(i) The new construction or substantial rehabilitation program under section 8(b)(2) of the U.S. Housing Act of 1937 as in effect before October 1, 1983;\n\n(ii) The property disposition program under section 8(b) of the U.S. Housing Act of 1937;\n\n(iii) The moderate rehabilitation program under section 8(e)(2) of the United States Housing Act of 1937;\n\n(iv) The loan management assistance program under section 8 of the United States Housing Act of 1937;\n\n(v) Section 23 of the United States Housing Act of 1937 as in effect before January 1, 1975;\n\n(vi) The rent supplement program under section 101 of the Housing and Urban Development Act of 1965;\n\n(vii) Section 8 of the United States Housing Act of 1937, following conversion from assistance under Section 101 of the Housing and Urban Development Act of 1965; or\n\n(viii) Section 8 of the U.S. Housing Act of 1937 as renewed under section 524 of MAHRA;\n\n(3) Have current gross potential rent for the project-based assisted units that exceeds the gross potential rent for the project-based assisted units using comparable market rents;\n\n(4) Have a first mortgage that has not previously been restructured under this part or under HUD's Portfolio Reengineering demonstration authority as defined in \u00a7 402.2(c) of this chapter;\n\n(5) Not be a project that is described in section 514(h) of MAHRA; and\n\n(6) Otherwise meet the definition of \u201celigible multifamily housing project\u201d in section 512(2) of MAHRA or meet the following three criteria:\n\n(i) The project is assisted pursuant to a contract for Section 8 assistance renewed under section 524 of MAHRA;\n\n(ii) It has an owner that consents for the project to be treated as eligible; and\n\n(iii) At the time of its initial renewal under section 524, it met the requirements of section 512(2)(A), (B), and (C) of MAHRA.\n\n(b)  When is eligibility determined?  Eligibility for a Restructuring Plan under paragraph (a) of this section is determined by the status of a project on the earlier of the termination or expiration date of the project-based assistance contract, which includes a contract renewed under section 524 of MAHRA, or the date of the owner's request to HUD for a Restructuring Plan. Eligibility is not affected by a subsequent change in status, such as contract extension under \u00a7 401.600 or part 402 of this chapter."], ["24:24:2.1.3.5.2.1.221.6", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "A", "Subpart A\u2014General Provisions; Eligibility", "", "\u00a7 401.101 Which owners are ineligible to request Restructuring Plans?", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66038, Nov. 26, 2007; 72 FR 73496, Dec. 27, 2007]", "(a)  Mandatory rejection.  The request of an owner of an eligible project will not be considered for a Restructuring Plan if the owner is debarred or suspended under 2 CFR part 2424.\n\n(b)  Discretion to reject.  HUD may also decide not to accept a request for a Restructuring Plan if:\n\n(1) An affiliate is debarred or suspended under 2 CFR part 2424; or\n\n(2) HUD notifies the owner that HUD is engaged in a pending suspension, debarment or other enforcement action against an owner or affiliate, and the grounds for the pending action are included in \u00a7 401.403(b)(2)(ii).\n\n(c)  Exception for sale.  This section does not apply if a sale or transfer of the property is proposed in accordance with \u00a7 401.480.\n\n(d)  Notice to tenants.  The PAE or HUD will give notice to tenants of a rejection in accordance with \u00a7\u00a7 401.500(f)(2), 401.501, and 401.502."], ["24:24:2.1.3.5.2.2.221.1", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.200 Who may be a PAE?", "HUD", "", "", "", "A PAE must qualify under the definition in section 512(10) of MAHRA. It must not have any outstanding violations of civil rights laws, determined in accordance with criteria in use by HUD. If the PAE is a private entity, whether nonprofit or for-profit, it must enter into a partnership with a public purpose entity, which may include HUD. A PAE may delegate responsibilities only as agreed in the PRA."], ["24:24:2.1.3.5.2.2.221.10", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.311 Standards of conduct.", "HUD", "", "", "", "(a)  Minimum ethical standards for PAEs.  In connection with the performance of any PRA and during the term of such PRA, a PAE or other restricted person (as defined in \u00a7 401.310) may not:\n\n(1) Solicit for itself or others favors, gifts, or other items of monetary value from any person who is seeking official action from HUD or the PAE in connection with the PRA or has interests that may be substantially affected by the restricted person's performance or nonperformance of duties to HUD;\n\n(2) Use improperly (or allow the improper use of) HUD property or property over which the restricted person has supervision or charge by reason of the PRA;\n\n(3) Use its status as PAE for its own benefit, or the financial or business benefit of a third party, except as contemplated by the PRA; or\n\n(4) Make any unauthorized promise or commitment on behalf of HUD.\n\n(b)  18 U.S.C. 201.  Pursuant to 18 U.S.C. 201, whoever acts for or on behalf of HUD in connection with the matters covered by this part is deemed to be a public official. Public officials are prohibited from soliciting or accepting anything of value in return for being influenced in the performance of official actions. Violators are subject to criminal sanctions.\n\n(c)  18 U.S.C. 1001.  Pursuant to 18 U.S.C. 1001, whoever knowingly and willingly falsifies a material fact, makes a false statement or utilizes a false writing in connection with a PRA is subject to criminal sanctions. Other Federal civil statutes also apply to making false statements to the United States.\n\n(d)  18 U.S.C. 207.  Former Federal Government employees are subject to the prohibitions in 18 U.S.C. 207."], ["24:24:2.1.3.5.2.2.221.11", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.312 Confidentiality of information.", "HUD", "", "", "", "A PAE and every other restricted person (as defined in \u00a7 401.310) has a duty to protect confidential information, except as provided in \u00a7\u00a7 401.500 through 401.503, and to prevent its use to further a private interest other than as contemplated by the PRA. As used in this section, confidential information means information that a PAE or other restricted person obtains from or on behalf of HUD or a third party in connection with a PRA but does not include information generally available to the public unless the information becomes available to the public as a result of unauthorized disclosure by the PAE or another restricted person."], ["24:24:2.1.3.5.2.2.221.12", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.313 Consequences of PAE violations; finality of HUD determination.", "HUD", "", "", "", "(a)  Effect on PRA.  If a PAE, potential PAE or other restricted person (as defined in \u00a7 401.310) violates \u00a7\u00a7 401.310, 410.311, or 401.312, HUD may:\n\n(1) Find the potential PAE unqualified to enter into a PRA;\n\n(2) Find the PAE unqualified to receive additional projects for restructuring under an existing PRA;\n\n(3) Find the PAE in default under an existing PRA with the right of termination for cause under \u00a7 401.309; or\n\n(4) Seek from a PAE or other restricted person HUD's actual, direct, and consequential damages resulting from the violation.\n\n(b)  Cumulative remedies.  The remedies under this section are cumulative and in addition to any other remedies or rights HUD may have under the terms of the PRA, at law, or otherwise.\n\n(c)  Finality of determination.  Any determination made by HUD pursuant to this section is at HUD's sole discretion and is not subject to further administrative review."], ["24:24:2.1.3.5.2.2.221.13", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.314 Environmental review responsibilities.", "HUD", "", "", "", "HUD will retain all responsibility for environmental review under part 50 of this title. Compliance with part 50 of this title will be completed before any HUD approval of the Restructuring Commitment under \u00a7 401.405."], ["24:24:2.1.3.5.2.2.221.2", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.201 How does HUD select PAEs?", "HUD", "", "", "", "(a)  Selection of PAE.  HUD will select qualified PAEs in accordance with the criteria established in 513(b) of MAHRA and criteria established by HUD. The selection method is within HUD's discretion, including but not limited to a request for qualifications.\n\n(b)  Priority for public agencies.  HUD will provide a one-time priority period for State housing finance agencies and local housing agencies to qualify as the PAEs for their jurisdictions. If more than one agency qualifies for the same jurisdiction, HUD will provide an opportunity for the agencies to allocate responsibility for projects in the jurisdiction. If the agencies are unable to agree, HUD will choose a PAE in accordance with section 513(b)(2) of MAHRA.\n\n(c)  Qualification for PAE by nonprofit and for-profit entities.  After the priority period expires, HUD will consider other eligible entities as PAEs for jurisdictions in which no public agency has qualified as the PAE, or for projects that have not been assigned to a qualified public agency.\n\n(d)  No PAE for project.  If HUD does not select a PAE for a project, HUD may perform the functions of the PAE, or contract with other qualified entities to perform those functions."], ["24:24:2.1.3.5.2.2.221.3", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.300 What is a PRA?", "HUD", "", "", "", "A PRA is an agreement between HUD and a PAE that delineates rights and responsibilities in connection with development and implementation of a Restructuring Plan. The PRA must contain or incorporate by reference the matters required by section 513(a)(2) of MAHRA and \u00a7\u00a7 401.301 through 401.314, as well as other terms and conditions required by HUD."], ["24:24:2.1.3.5.2.2.221.4", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.301 Partnership arrangements.", "HUD", "", "", "", "If the PAE is in a partnership, the PRA must specify the following:\n\n(a) The responsibilities of each partner regarding the Restructuring Plan;\n\n(b) The resources each partner will provide to accomplish its designated responsibilities; and\n\n(c) All compensation to each partner, whether direct or indirect."], ["24:24:2.1.3.5.2.2.221.5", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.302 PRA administrative requirements.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 80 FR 75936, Dec. 7, 2015]", "(a)  Inapplicability of certain requirements.  Part 200 of 2 CFR and contract procurement requirements do not apply to a PRA.\n\n(b)  Recordkeeping.  The PAE must keep complete and accurate records of all activities related to the PAE's performance under the PRA. The PAE must retain the records for at least 3 years after the PRA terminates.\n\n(c)  Inspection of records and audit.  Upon reasonable notice, the PAE must permit the Comptroller General of the United States and HUD (including representatives of the HUD Office of Inspector General) to inspect, audit, and copy any records required to be retained under this section."], ["24:24:2.1.3.5.2.2.221.6", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.303 PRA indemnity provisions for SHFAs and HAs.", "HUD", "", "", "", "When a PRA requires HUD to indemnify a PAE in accordance with section 513(a)(2)(G) of MAHRA, any payment under this indemnity is contingent upon the availability of funds that are permitted by law to be used for this purpose."], ["24:24:2.1.3.5.2.2.221.7", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.304 PRA provisions on PAE compensation.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66038, Nov. 26, 2007]", "(a)  Base fee.  (1) The PRA will provide for base fees to be paid by HUD.\n\n(2) HUD will establish a substantially uniform baseline for base fees for public entities. The base fee for a PAE will be adjusted, if necessary, after the first term of the PRA.\n\n(3) Private PAEs will be compensated based on the results of a competitive bid process which evaluates bidders' capability, timeliness, ability to work with tenant and community groups, and cost.\n\n(b)  Incentives.  The PRA may provide for incentives to be paid by HUD. While individual components may vary between PAEs (both public and private), the total amount potentially payable under the incentive package will be uniform. Objectives may include maximizing savings to the Federal Government, timely performance, tenant satisfaction with the PAE's performance, the infusion of public funds from non-HUD sources, and other benchmarks that HUD considers appropriate.\n\n(c)  Expenses.  The PRA will identify expenses incurred by the PAE that will qualify for reimbursement by HUD. Limits on these expenses will be established annually by HUD, but HUD may waive the limits for high-cost areas.\n\n(d)  Other matters.  HUD will retain the right of final approval of any fee schedule. HUD will publish the standard form of PRA and the compensation package annually on its Internet Web site."], ["24:24:2.1.3.5.2.2.221.8", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.309 PRA term and termination provisions; other provisions.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66038, Nov. 26, 2007]", "(a)  1-year term with renewals.  The PRA will have a term of 1 year, to be renewed for successive terms of 1 year with the mutual agreement of both parties. The PRA will provide for HUD to pay final compensation to the PAE and to assign responsibility for continuing activities if the PRA is not renewed.\n\n(b)  Termination for cause or convenience of Federal Government \u2014(1)  Termination for cause.  HUD may terminate a PRA at any time for cause, with payment required by HUD as provided in the PRA only for matters authorized by the PRA and performed by the PAE to the date of termination. HUD will retain the right of set-off against any payments due as well as such other rights afforded at law and in equity.\n\n(2)  Termination for convenience of Federal Government.  HUD may terminate a PRA, and may remove an eligible property from a PRA, at any time in accordance with the PRA or applicable law, regardless of whether the PAE is in default of any of its obligations under the PRA, if such termination is in the best interests of the Federal Government. The PRA will provide for payment to the PAE of a specified percentage of the base fee authorized by \u00a7 401.304(a) and amounts for reimbursement of third-party vendors to the PAE authorized by \u00a7 401.304(c).\n\n(3)  Transfer to another PAE; temporary waiver of rights.  If a PRA is terminated:\n\n(i) HUD may order an immediate transfer of some or all of the PAE's duties to another PAE designated by HUD; and\n\n(ii) HUD may temporarily waive its right of immediate termination in order to allow an orderly transfer of duties and responsibilities under a PRA, without waiving the right of termination after the transfer has been completed to HUD's satisfaction.\n\n(c)  Liability for damages.  During the term of a PRA, and notwithstanding any termination of a PRA, HUD may seek its actual, direct, and consequential damages from any PAE for failure to comply with its obligations under PRA.\n\n(d)  Cumulative remedies.  The remedies under this section are cumulative and in addition to any other remedies or rights HUD may have under the terms of the PRA, at law, or otherwise."], ["24:24:2.1.3.5.2.2.221.9", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "B", "Subpart B\u2014Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA)", "", "\u00a7 401.310 Conflicts of interest.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  Definitions.  (1)  Conflict of interest  means a situation in which a PAE or other restricted person:\n\n(i) Has a financial interest, direct or indirect, that prevents or may prevent the PAE or other restricted person from acting at all times in the best interests of HUD;\n\n(ii) Has one or more personal, business, or financial interests or relationships that would cause a reasonable person with knowledge of the relevant facts to question the integrity or impartiality of those who are or will be acting under the PRA; or\n\n(iii) Is taking an adverse position to HUD or to an owner whose project is covered by a PRA in a lawsuit, administrative proceeding, or other contested matter.\n\n(2)  Control  means the power to vote, directly or indirectly, 25 percent or more of any class of the voting stock of a company; the ability to direct in any manner the election of a majority of a company (or other entity's) directors or trustees; or the ability to exercise a controlling influence over the company or entity's management and policies. For purposes of this definition, a general partner of a limited partnership is presumed to be in control of that partnership.\n\n(3)  Restricted person  means a PAE; any management official of the PAE; any legal entity that is under the control of the PAE, is in control of the PAE, or is under common control with the PAE; or any employee, agent or contractor of the PAE, or employee of such agent or contractor, who will perform or has performed services under a PRA with HUD.\n\n(b)  General prohibitions.  (1) The PAE may not permit conflicts of interest to exist without obtaining a waiver in accordance with this section.\n\n(2) The PAE must establish procedures to identify conflicts of interest and to ensure that conflicts of interest do not arise or continue, subject to waiver under paragraph (c) of this section.\n\n(3) HUD will not enter into PRAs with potential PAEs who have conflicts of interest associated with a particular project, or permit PAEs to continue performance under existing PRAs when such PAEs have conflicts of interest, unless such conflicts have been eliminated to HUD's satisfaction by the PAE or potential PAE or are waived by HUD.\n\n(4) The PAE has a continuing obligation to take all action necessary to identify whether it or any other restricted person has a conflict of interest.\n\n(c)  Waivers.  HUD will waive conflicts of interest only when, in light of all relevant circumstances, the interests of HUD in the PAE's or another restricted persons's participation outweigh the concern that a reasonable person may question the integrity of HUD's operations.\n\n(d)  Conflicts of interest arising prior to PAE selection \u2014(1)  Request for review of conflicts of interest.  (i) A potential PAE, with its request to HUD for consideration for selection as a PAE, must identify existing conflicts of interest and may make a written request for a determination as to the existence of a conflict of interest, may request that the conflict of interest, if any, be waived, or may propose how it could eliminate the conflict.\n\n(ii) If, after submitting a request but prior to selection, a potential PAE discovers that it has a conflict, it must notify HUD in writing within 10 days of submitting the request or prior to selection, whichever is earlier. Such notification must contain a detailed description of the conflict. The potential PAE may, with its notification, request that the conflict be waived or may propose how it may eliminate the conflict. The potential PAE may also request a determination as to the existence of the conflict. The potential PAE may also request a determination as to the existence of the conflict.\n\n(2)  Review by HUD.  Subject to the restrictions set forth in this section, HUD in its sole discretion may determine whether a conflict of interest exists, may waive the conflict of interest, or may approve in writing a PAE's proposal to eliminate a conflict of interest.\n\n(e)  Conflicts of interest that arise or are discovered after PAE selection.  (1) A PAE must notify HUD in writing within 10 days after discovering that it or another restricted person has a conflict of interest. Such notification must contain a detailed description of the conflict of interest and state how the PAE intends to eliminate the conflict. The PAE may also request a determination as to the existence of a conflict.\n\n(2) HUD will, after receipt of such notification or other discovery of the PAE's conflict or potential conflict of interest, take such action as it determines is in its best interests, which may involve proceeding under \u00a7 401.313 or as provided in the following sentences. HUD may notify the PAE in writing of its findings as to whether a conflict of interest exists and the basis for such determination, whether or not a waiver will be granted, or whether corrective actions may be taken in order to eliminate the conflict of interest. Corrective action must be completed by the PAE not later than 30 days after notification is mailed by HUD unless HUD, at its sole discretion, determines that it is in its best interests to grant the PAE an extension in which to complete the corrective action.\n\n(f)  Reconsideration of decisions.  Decisions issued pursuant to this section may be reconsidered by HUD upon application by the PAE. Such requests must be in writing and must contain the basis for the request. HUD may, at its discretion and after determining that it is in its best interests, stay any corrective or other actions previously ordered pending reconsideration of a decision."], ["24:24:2.1.3.5.2.3.221.1", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.400 Required elements of a Restructuring Plan.", "HUD", "", "", "", "(a)  General.  A PAE is responsible for the development of a Restructuring Plan for each project included in its PRA.\n\n(b)  Required elements.  The Restructuring Plan must contain a narrative that fully describes the restructuring transaction. The Restructuring Plan must include the elements required by section 514(e) of MAHRA. The Restructuring Plan must describe the use of any restructuring tools listed at sections 517(a) and (b) of MAHRA, and must contain other requirements as determined by HUD."], ["24:24:2.1.3.5.2.3.221.10", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.410 Standards for determining comparable market rents.", "HUD", "", "", "", "(a)  When are comparable market rents required?  The Restructuring Plan must establish restructured rents for project-based assistance at comparable market rents unless the PAE finds that exception rents are necessary under \u00a7 401.411.\n\n(b)  Comparable market rents defined.  Comparable market rents are the rents charged for properties that the PAE determines to be comparable properties (as defined in section 512(1) of MAHRA, but also excluding section 202 or section 811 projects assisted under part 891 of this title). For purposes of section 512(1), other relevant characteristics include any applicable rent control and other characteristics determined by the PAE. The PAE may make appropriate adjustments when needed to ensure comparability of properties.\n\n(c)  Methodology for determining comparable market rents.  If the PAE is unable to identify at least three comparable properties within the local market, the PAE may:\n\n(1) Use non-comparable housing stock within that market from which adjustments can be made; or\n\n(2) If necessary to go outside the market, use comparable properties as far outside the local market as it finds reasonable, from which adjustments can be made.\n\n(d)  Using FMR as last resort.  If the PAE is unable to identify enough properties under paragraph (c) of this section, comparable market rents must be set at 90 percent of the Fair Market Rents for the relevant market area."], ["24:24:2.1.3.5.2.3.221.11", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.411 Guidelines for determining exception rents.", "HUD", "", "", "", "(a)  When do exception rents apply?  (1) The Restructuring Plan may provide for exception rents established under section 514(g)(2) of MAHRA for project-based assistance if the PAE determines that project income under the rent levels established under \u00a7 401.410 would be inadequate to meet the costs of operating the project as described in paragraph (b) of this section and that the housing needs of the tenants and the community could not be adequately addressed.\n\n(2) In any fiscal year, the PAE may not request HUD to approve Restructuring Plans with exception rents for more than 20 percent of all units covered by the PRA, except that HUD may approve a waiver of this 20 percent limitation based on the PAE's narrative explanation of special need.\n\n(b)  How are exception rents calculated?  (1) Exception rents must be set at a level sufficient to support the costs of operating the project. The PAE must take into account the following cost items:\n\n(i) Debt service on the second mortgage under \u00a7 401.461(a) or a rehabilitation loan included in the Restructuring Plan;\n\n(ii) The operating expenses of the project, as determined by the PAE, including:\n\n(A) Contributions to adequate reserves for replacement;\n\n(B) The costs of maintenance and necessary rehabilitation;\n\n(C) Other eligible costs permitted under the section 8 program;\n\n(iii) An adequate allowance for potential operating losses due to vacancies and failure to collect rents, as determined by the PAE;\n\n(iv) A return to the owner to the extent permitted by \u00a7 401.461(b)(3)(ii)(A); and\n\n(v) Other expenses determined by the PAE to be necessary for the operation of the project.\n\n(2) The exception rent must not exceed 120 percent of the Fair Market Rent for the market area, except that HUD may approve an exception rent greater than 120 percent of Fair Market Rent, based on a narrative explanation of special need submitted by the PAE, subject to the 5 percent limitation in section 514(g)(2)(A) of MAHRA."], ["24:24:2.1.3.5.2.3.221.12", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.412 Adjustment of rents based on operating cost adjustment factor (OCAF) or budget.", "HUD", "", "", "[89 FR 14590, Feb. 28, 2024]", "(a)  OCAF.  (1) The Restructuring Plan must provide for annual adjustment of the restructured rents for project-based assistance by an OCAF determined by HUD.\n\n(2)  Application of OCAF.  HUD will apply the OCAF to the previous year's contract rent less the portion of that rent paid for debt service. This paragraph applies to renewals of contracts that receive restructured rents under either section 514(g)(1) or (2) of MAHRA.\n\n(b)  Budget-based.  Rents will be adjusted to the lesser of budget-based rents or the comparable market rents for the market area instead of OCAF not more often than once every ten years upon request of an owner or purchaser who\n\n(1) Demonstrates that:\n\n(i) Project income is insufficient to operate and maintain the project, and no rehabilitation is currently needed, as determined by the Secretary; or\n\n(ii) The rent adjustment or renewal contract is necessary to support commercially reasonable financing (including any required debt service coverage and replacement reserve) for rehabilitation necessary to ensure the long-term sustainability of the project, as determined by the Secretary, and in the event the owner or purchaser fails to implement the rehabilitation as required by the Secretary, the Secretary may take such action against the owner or purchaser as allowed by law; and\n\n(2) Agrees to:\n\n(i) Extend the affordability and use restrictions required under 514(e)(6) for an additional twenty years; and\n\n(ii) Enter into a binding commitment to continue to renew such contract for and during such extended term, provided that after the affordability and use restrictions required under 514(e)(6) have been maintained for a term of 30 years:\n\n(A) An owner with a contract for which rent levels were set at the time of its initial renewal under section 514(g)(2) shall request that the Secretary renew such contract under section 524 for and during such extended term; and\n\n(B) An owner with a contract for which rent levels were set at the time of its initial renewal under section 514(g)(1) may request that the Secretary renew such contract under section 524 for and during such extended term."], ["24:24:2.1.3.5.2.3.221.13", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.420 When must the Restructuring Plan require project-based assistance?", "HUD", "", "", "", "The Restructuring Plan must provide for the section 8 contract to be renewed as project-based assistance, subject to the availability of funds for this purpose, if:\n\n(a) The PAE determines there is a market-wide vacancy rate of 6 percent or less;\n\n(b) At least 50 percent of the units in the project are occupied by elderly families, disabled families, or elderly and disabled families; or\n\n(c) The project is held by a nonprofit cooperative ownership housing corporation or nonprofit cooperative housing trust."], ["24:24:2.1.3.5.2.3.221.14", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.421 Rental Assistance Assessment Plan.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  Plan required.  For any project not subject to mandatory project-based assistance under \u00a7 401.420, the PAE must develop a Rental Assistance Assessment Plan in accordance with section 515(c)(2) of MAHRA to determine whether assistance should be renewed as project-based assistance or whether some or all of the assisted units should be converted to tenant-based assistance.\n\n(b)  Matters to be assessed.  The PAE must include an assessment of the impact of converting to tenant-based assistance and the impact of renewing project-based assistance on:\n\n(1) The ability of the tenants to find adequate, available, decent, comparable, and affordable housing in the local market;\n\n(2) The types of tenants residing in the project (such as elderly families, disabled families, large families, and cooperative homeowners);\n\n(3) The local housing needs identified in the applicable Consolidated Plan developed under part 91 of this title;\n\n(4) The cost of providing assistance, comparing the applicable payment standard to the rent levels permitted by \u00a7\u00a7 401.410 and 401.411;\n\n(5) The long-term financial stability of the project;\n\n(6) The ability of residents to make reasonable choices about their individual living situations;\n\n(7) The quality of the neighborhood in which the tenants would reside; and\n\n(8) The project's ability to compete in the marketplace.\n\n(c)  Conversion may be phased in.  Any conversion from project-based assistance to tenant-based assistance may occur over a period of not more than 5 years if the PAE decides the transition period is needed for the financial viability of the project.\n\n(d)  Reports to HUD.  The PAE must report to HUD on the matters specified in section 515(c)(2)(C) of MAHRA at least semi-annually."], ["24:24:2.1.3.5.2.3.221.15", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.450 Owner evaluation of physical condition.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  Initial evaluation.  The owner must evaluate the physical condition of the project and provide the following information to the PAE in a form acceptable to the PAE:\n\n(1) All work items required to bring the project to the standard in \u00a7 401.452, including any work items needed to ensure compliance with applicable requirements of part 8 of this title concerning accessibility to persons with disabilities;\n\n(2) The capital repair or replacement items that will be necessary to maintain the long-term physical integrity of the property;\n\n(3) A plan for funding the rehabilitation work included in paragraph (a)(1) of this section, which work must be completed in a timely manner after closing the restructuring transaction, that identifies the source of the required owner contribution of non-project funds; and\n\n(4) An estimate of the initial deposit, if any, and the estimated monthly deposit to the reserve for replacement account for the next 20 years.\n\n(b)  Use of CNA.  An owner may comply with paragraph (a) of this section by submitting a comprehensive needs assessment in accordance with title IV of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-1a note) if the CNA:\n\n(1) Was completed or updated within 1 year; and\n\n(2) Contains all of the matters required by paragraph (a) of this section.\n\n(c)  Reconsideration and modification of evaluation.  If the PAE, after its independent review under \u00a7 401.451, determines that the owner's evaluation either fails to address specific necessary work items or fails to propose a cost-effective approach to rehabilitation, the owner may modify its evaluation to satisfy the concerns of the PAE."], ["24:24:2.1.3.5.2.3.221.16", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.451 PAE Physical Condition Analysis (PCA).", "HUD", "", "", "", "(a)  Review and certification of owner evaluation.  (1) The PAE must independently evaluate the physical condition of the project by means of a PCA. If the PAE finds any immediate threats to health and safety, the owner must complete those work items immediately, or the PAE must evaluate the project's eligibility in accordance with \u00a7 401.403(b)(2)(iii).\n\n(2) After consultation with the owner and an opportunity for the owner to modify its evaluation performed under \u00a7 401.450, the PAE must either certify to the accuracy and completeness of the owner's evaluation performed under \u00a7 401.450 for each project covered by the PRA, or state that the evaluation fails to address certain items or does not propose a cost effective approach.\n\n(b)  Rejection due to inaccurate or incomplete owner evaluation.  If the PAE cannot certify to the accuracy and completeness of the owner's evaluation due to its failure to address specific work items or because it does not propose a cost effective approach, the PAE must notify HUD. If HUD agrees with the PAE's determination, the PAE must notify the owner that the request for a Restructuring Plan is rejected.\n\n(c)  Rejection due to poor condition of the project.  Based on the completed PCA, the PAE must determine whether proceeding with a Restructuring Plan with necessary rehabilitation is more cost-effective in terms of Federal resources than rejecting the Request for a Restructuring Plan under \u00a7 401.403(b)(2)(iii) and providing tenant-based assistance for displaced tenants under \u00a7 401.602. HUD will provide guidance to PAEs for making the determination. If the PAE concludes that a request for a Restructuring Plan should be rejected because of lack of cost-effectiveness due to poor condition of the project, it must also consider the effect on tenants and the community and advise HUD of the effect. HUD will make the final decision after considering the PAE's recommendation.\n\n(d)  Dispute and appeal of rejection.  The dispute and appeal provisions of subpart F of this part apply to rejections under paragraphs (b) and (c) of this section."], ["24:24:2.1.3.5.2.3.221.17", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.452 Property standards for rehabilitation.", "HUD", "", "", "[72 FR 66038, Nov. 26, 2007]", "The restructuring plan must provide for the level of rehabilitation needed to restore the property to the non-luxury standard adequate for the rental market for which the project was originally approved. If the standard has changed over time, the rehabilitation may include improvements to meet the current standards. The rehabilitation also may include the addition of significant features, in accordance with \u00a7 401.472. The result of the rehabilitation should be a project that can attract non-subsidized tenants, but competes on rent rather than on amenities. When a range of options exists for satisfying the rehabilitation standard, the PAE must choose the least costly option considering both capital and operating costs and taking into account the marketability of the property and the remaining useful life of all building systems. Nothing in this part exempts rehabilitation from the requirements of part 8 of this title concerning accessibility to persons with disabilities."], ["24:24:2.1.3.5.2.3.221.18", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.453 Reserves.", "HUD", "", "", "", "The Restructuring Plan must provide for reserves for capital replacement sufficient to ensure the property's long-term structural integrity so that the property can be maintained as affordable housing in decent, safe, and sanitary condition meeting the standards of \u00a7 401.558."], ["24:24:2.1.3.5.2.3.221.19", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.460 Modification or refinancing of first mortgage.", "HUD", "", "", "", "(a)  Principal amount.  As part of the Restructuring Plan, the PAE will determine the size of the restructured first mortgage that will result from the modification or refinancing of the existing FHA-insured or HUD-held first mortgage. The restructured first mortgage must be in the amount that can be supported by net operating income based on the lower of the restructured section 8 rents or the rents allowed by the Use Agreement under \u00a7 401.408. Neither the outstanding principal balance of the existing first mortgage, nor the monthly principal and interest payments on that debt, may be increased through modification under the Restructuring Plan. The debt service coverage used by the PAE must be adequate for purposes of the Restructuring Plan and for the requirements of any refinancing.\n\n(b)  Fully amortizing.  The modified or refinanced first mortgage must be fully amortizing through level monthly payments.\n\n(c)  Rates and other terms.  Interest rates and other terms of the modified or refinanced first mortgage must be competitive in the market.\n\n(d)  Fees.  Any fees or costs associated with mortgage modification or refinancing determined by the PAE to be above normal processing fees must be paid by the owner from non-project funds and must not be included in the modified or refinanced first mortgage.\n\n(e)  Refinancing.  (1) The owner must contact the mortgagee to determine the mortgagee's willingness to consider a modification and re-amortization of the existing first mortgage through a Restructuring Plan before considering any other source of first mortgage financing. If the mortgagee does not agree to modify and re-amortize in accordance with the Restructuring Plan, the loan must be refinanced.\n\n(2) The refinancing may be either without credit enhancement or with credit enhancement under one of the following:\n\n(i)  FHA mortgage insurance.  If the Restructuring Plan provides for FHA mortgage insurance for the refinanced first mortgage, the insurance will be provided in accordance with all usually applicable FHA legal requirements except that insurance will be documented as provided in section 517(b)(2) of MAHRA. HUD will issue the commitment for mortgage insurance but may adapt its procedures as necessary to facilitate development and implementation of a Restructuring Plan.\n\n(ii)  Other FHA credit enhancement.  If FHA credit enhancement, including risk-sharing, is provided under part 266 of this title, the credit enhancement will be provided in accordance with all usually-applicable FHA legal requirements under part 266 of this title, except that special approval from HUD will be required before the PAE engages in risk-sharing with FHA under part 266 of this title. HUD will approve risk-sharing financing that complies with part 266 whenever required by section 517(b)(3) of MAHRA.\n\n(iii)  Credit enhancement from non-FHA sources.  If credit enhancement is to be provided by a non-FHA source under section 517(b)(4) of MAHRA, HUD will consider waiver of any non-statutory provision in this part only if the waiver will not materially impair achievement of the purposes of MAHRA and if the waiver is essential to meet the legitimate business or legal requirements of the provider of credit enhancement."], ["24:24:2.1.3.5.2.3.221.2", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.401 Consolidated Restructuring Plans.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66038, Nov. 26, 2007]", "A PAE may request HUD to approve a Consolidated Restructuring Plan that presents an overall strategy for more than one project included in the PRA. HUD will consider approval of a Consolidated Restructuring Plan for projects having common ownership, geographic proximity, common mortgagee or servicer, or other factors that contribute to more efficient use of the PAE's resources. Notwithstanding the more efficient use of a PAE's resources, HUD will not approve any Consolidated Restructuring Plans that have a detrimental effect on tenants or the community, or a higher cost to the Federal Government. HUD's decision to approve or disapprove a Consolidated Restructuring Plan will be made on a case-by-case basis."], ["24:24:2.1.3.5.2.3.221.20", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.461 HUD-held second mortgage.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66038, Nov. 26, 2007]", "(a)  Amount.  (1) The Restructuring Plan must provide for a second mortgage to HUD whenever the Plan provides for either payment of a claim under section 541(b) of the National Housing Act (541(b) claim) or the modification or refinancing of a HUD-held first mortgage that results in a first mortgage with a lower principal amount. The term \u201csecond mortgage\u201d in this section also includes a new HUD-held first mortgage (not a refinancing mortgage), if a full payment of claim is made under \u00a7 401.471 or if a full payment of claim is unnecessary because surplus project accounts are available to facilitate the Restructuring Plan, pursuant to section 517(b)(6) of MAHRA, or if \u00a7 401.460(a) does not permit a restructured first mortgage in any amount.\n\n(2) The second mortgage must be in a principal amount that does not exceed the lesser of:\n\n(i) The amount the PAE reasonably expects to be repaid based on objective criteria such as the amount of anticipated net cash flow, trending assumptions, amortization provisions, and expected residual value of the property; and\n\n(ii) The greater of:\n\n(A) The section 541(b) claim (or the difference between the unpaid principal balance on HUD-held mortgage debt immediately before and after the restructuring), plus surplus project accounts from residual receipts accumulated pursuant to 24 CFR 880.205(e), 881.205(e), or 883.306(e) and derived from an expiring Section 8 Housing Assistance Payments contract and not otherwise distributed to the owner and made available to facilitate the Restructuring Plan pursuant to section 517(b)(6) of MAHRA, and\n\n(B) The difference between the unpaid balance on the first mortgage immediately before and after the restructuring.\n\n(b)  Terms and conditions.  (1) The second mortgage must have an interest rate of at least one percent, but not more than the applicable Federal rate.\n\n(2) The second mortgage must have a term concurrent with the modified or refinanced first mortgage, if any. HUD may provide that if there is no first mortgage, the second mortgage may continue for a term established by HUD.\n\n(3)(i) Principal and interest on the second mortgage is payable only out of net cash flow during its term. \u201cNet cash flow\u201d means that portion of project income that remains after the payment of all required debt service payments on the modified or refinanced first mortgage, if any, including payment of any past due principal or interest, and payment of all reasonable and necessary operating expenses (including deposits to the reserve for replacement account) and any other expenditure approved by HUD.\n\n(ii) The priority and distribution of net cash flow is as follows:\n\n(A) HUD or the PAE may approve the payment to the owner of up to 25 percent of net cash flow based on consideration of relevant conditions and circumstances including, but not limited to, compliance with the management standards prescribed in \u00a7 401.560 and the physical condition standards prescribed in \u00a7 401.558; and\n\n(B) All remaining net cash flow will be applied to the principal and interest on the second mortgage, until paid in full, and then to any additional subordinate mortgage under \u00a7 401.461(c).\n\n(4) HUD may cause the second mortgage to be immediately due and payable on the grounds provided in section 517(a)(4) of MAHRA, including an assumption of the mortgage in violation of HUD standards for approval of transfers of physical assets (if applicable), or if the owner materially fails to comply with other material HUD requirements after a reasonable opportunity for the owner to cure such failure. A decision by HUD in this regard is subject to the administrative appeals procedure in subpart F of this part, unless HUD acts on the basis of the grounds specified in sections 517(a)(4)(A) or (B) of MAHRA.\n\n(5) HUD will consider modification, assignment to the acquiring entity, or forgiveness of all or part of the second mortgage, if: The Secretary holds the second mortgage; and if the project has been sold or transferred to a tenant organization or tenant-endorsed community-based nonprofit or public agency that meets eligibility guidelines determined by HUD; accepts additional affordability requirements acceptable to HUD; and requests such modification, assignment, or forgiveness. A community-based nonprofit group or public agency demonstrates that it is tenant-endorsed in accordance with \u00a7 401.480(e).\n\n(c)  Additional mortgage to HUD.  (1) A Restructuring Plan shall require the owner to give an additional mortgage on the project to HUD in an amount that:\n\n(i) For the restructuring of a mortgage insured by HUD, does not exceed the difference between:\n\n(A) The amount of a section 541(b) claim paid under \u00a7 401.471 increased by any residual receipts, pursuant to 24 CFR 880.205(e), 881.205(e), or 883.306(e); and\n\n(B) The principal amount of the second mortgage; or\n\n(ii) For the restructuring of a mortgage held by HUD, does not exceed the difference between:\n\n(A) The principal amount of a restructured HUD-held mortgage and the sum of, as applicable, a restructured HUD-held first mortgage at reduced principal amount, new mortgage funds paid to HUD at closing, and surplus project accounts other than residual receipts, pursuant to 24 CFR 880.205(e), 881.205(e), or 883.306(e); and\n\n(B) The principal amount of the second mortgage.\n\n(2) HUD may approve a Plan that does not require an additional mortgage, or provides for less than the full difference to be payable under the additional mortgage, or allows for subsequent modification, assignment, or forgiveness of the additional mortgage under any of the following circumstances:\n\n(i) The anticipated recovery on the additional mortgage is less than the servicing costs; or\n\n(ii) HUD has approved modification, assignment, or forgiveness of the second mortgage, pursuant to paragraph (b)(5) of this section.\n\n(3) With respect to the second mortgage required by paragraph (a) of this section, any additional mortgage must:\n\n(i) Be junior in priority;\n\n(ii) Bear interest at the same rate; and\n\n(iii) Require no payment until the second mortgage is satisfied, at which time it will be payable upon demand of HUD or as otherwise agreed by HUD."], ["24:24:2.1.3.5.2.3.221.21", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.471 HUD payment of a section 541(b) claim.", "HUD", "", "", "", "HUD will pay a section 541(b) claim from the appropriate insurance fund to the insured mortgagee on behalf of the mortgagor. The mortgagee must use the claim payment to prepay the principal balance of the insured mortgage, in whole or in part, as provided in the Restructuring Plan. All section 541(b) claims will be paid in cash. Part 207 of this title and sections 207(g) and 541(a) of the NA do not apply to a section 541(b) claim."], ["24:24:2.1.3.5.2.3.221.22", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.472 Rehabilitation funding.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66039, Nov. 26, 2007]", "(a)  Sources of funds \u2014(1)  Project accounts.  The Restructuring Plan for funding rehabilitation must include funds from the project's residual receipts account, surplus cash account, replacement reserve account, and other project accounts, to the extent the PAE determines that those accounts will not be needed for the initial deposit to the reserves.\n\n(2)  Debt restructuring.  The Restructuring Plan may provide for funding of rehabilitation through a new first mortgage in conjunction with a payment of a section 541(b) claim. The payment of claim may be in an amount necessary to facilitate the funding of the rehabilitation, by reducing the existing first mortgage debt to make refinancing proceeds available to fund rehabilitation.\n\n(3)  Section 236(s) rehabilitation grant.  The Restructuring Plan may include a direct grant from HUD under section 236(s) of the NA made in accordance with \u00a7 401.473, to the extent that HUD has determined that funding is available for such a grant.\n\n(4)  Section 8 budget authority increase.  The Restructuring Plan may include funding of rehabilitation from budget authority provided to HUD for increases in section 8 contracts, to the extent that HUD has determined that funding from this source is available.\n\n(b)  Statutory restrictions.  Any rehabilitation funded from the sources described in paragraph (a) of this section is subject to the requirements in section 517(c) of MAHRA for an owner contribution.\n\n(1)  Addition of significant features.  With respect to significant added features, the required owner contribution will be as proposed by the PAE and approved by HUD, and not to exceed 20 percent of the total cost. Significant added features include the addition of air conditioning (including conversions from window air conditioning to central air conditioning), an elevator, or additional community space.\n\n(2)  Cap on owner contribution.  If a restructuring plan includes additions other than those specified, and the PAE considers the additions significant, the PAE may propose to make those additions subject to the cap on owner contribution. In general, the owner will contribute 3 percent toward the cost of each significant addition. The PAE may propose a lower or higher owner contribution, not to exceed 20 percent, with respect to significant additions.\n\n(3)  Other rehabilitation.  With respect to other rehabilitation, the required owner contribution will be calculated as 20 percent of the total cost of rehabilitation, unless HUD or the PAE determines that a higher percentage is required. The owner contribution must include a reasonable proportion (as determined by HUD) of the total cost of rehabilitation from nongovernmental resources.\n\n(4)  Cooperatives.  The PAE may exempt housing cooperatives from the owner contribution requirement.\n\n(c)  Escrow agent.  The Restructuring Plan must provide for progress payments for rehabilitation, which must be disbursed by an acceptable escrow agent subject to PAE oversight or as otherwise provided by HUD."], ["24:24:2.1.3.5.2.3.221.23", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.473 HUD grants for rehabilitation under section 236(s) of NA.", "HUD", "", "", "", "HUD will consider a direct grant for rehabilitation under section 236(s) of the NA only if the owner provides an acceptable work schedule and cost-analysis that is consistent with the owner's evaluation of physical condition under \u00a7 401.450, as certified by the PAE. The owner must execute a grant agreement with terms and conditions acceptable to HUD. If the PAE is a State or local government, or an agency or instrumentality of such a government, the PAE and HUD may agree that the PAE will be delegated the responsibility for the administration of any grant made under this section. HUD may make grant funding available for the cost of administration if HUD has determined that such funding is available."], ["24:24:2.1.3.5.2.3.221.24", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.474 Project accounts.", "HUD", "", "", "", "(a)  Accounts from other projects.  The accounts listed in \u00a7 401.472(a)(1) may be used for other eligible projects only if:\n\n(1) The projects are included in a Consolidated Restructuring Plan under \u00a7 401.401; and\n\n(2) The funds are used for rehabilitation or to reduce a section 541(b) claim paid by HUD under \u00a7 401.471.\n\n(b)  Distribution to owner.  The Restructuring Plan may provide for a one-time distribution to the owner, not to exceed 10 percent of the excess funds in project accounts, to be released after completion of the rehabilitation required by the Restructuring Plan."], ["24:24:2.1.3.5.2.3.221.25", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.480 Sale or transfer of project.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66039, Nov. 26, 2007]", "(a)  May the owner request a Restructuring Plan that includes a sale or transfer of the property?  The owner may request a Restructuring Plan that includes a condition that the property be sold or transferred to a purchaser acceptable to HUD in a reasonable period needed to consummate the transaction. The failure to consummate a sale or transfer of the property requested under paragraph (a) of this section will neither adversely affect an owner's eligibility for a Restructuring Plan nor exempt the owner from the requirements of \u00a7 401.600. There are no priority purchaser requirements for a voluntary sale or transfer by an owner that is eligible for a Restructuring Plan.\n\n(b)  When must the restructuring plan include sale or transfer of the property?  If the owner is determined to be ineligible pursuant to \u00a7 401.101 or \u00a7 401.403, or if the property is subject to an approved plan of action under the Emergency Low Income Housing Preservation Act of 1987 or the Low Income Housing Preservation and Resident Homeownership Act of 1990, as described in section 524(e)(3) of MAHRA, the property must be sold or transferred as a condition of implementation of a restructuring plan, which must include a condition that the owner sell or transfer the property to a purchaser acceptable to HUD, in accordance with paragraph (c) of this section. Such sale or transfer shall be a condition to the implementation of the Restructuring Plan.\n\n(c)  Owner's notice of intent to sell or transfer.  (1) The owner must provide notice to the PAE affirming the owner's intent to sell or transfer the property. This notice must be received by the PAE no later than 30 days after a notice of rejection under \u00a7 401.101 or \u00a7 401.403 has become a final determination under subpart F of this part.\n\n(2) The owner must cooperate in selling or transferring the property. Failure to do so will result in the PAE's determination to reject the owner's request for a Restructuring Plan. The owner must distribute and publish, in an appropriate publication, a notice to potential purchasers that describes the property, proposed terms of sale, and procedures for submitting a purchase offer. The notice in form and substance must be acceptable to HUD, and must inform potential offerors of a preference for priority purchasers.\n\n(3) During a period to be determined by HUD that begins when the owner gives notice of intent to sell or transfer, an owner may accept an offer only from a priority purchaser.\n\n(4) No sale or transfer to a non-priority purchaser will be approved without evidence of tenant support.\n\n(d)  Informing PAE; approval required.  The owner must inform the PAE of any offer to purchase the property and the owner must advise the PAE of the substance and on-going status of the owner's discussions with any prospective purchaser. The owner's acceptance of the offer must be subject to PAE approval, and HUD approval of the Restructuring Plan.\n\n(e)  Tenant endorsement procedure for priority purchaser status \u2014(1)  Required meeting.  (i) A community-based nonprofit or public agency purchaser requesting tenant endorsement to obtain priority purchaser status must conduct an informational meeting with the tenants of the project to disseminate information about both the endorsement request and the purchaser's plans for the project.\n\n(ii) If the purchaser is acting contemporaneously with the Restructuring Plan, the informational meeting must occur at the second meeting of tenants convened by the PAE to discuss the restructuring plan pursuant to \u00a7 401.500(d).\n\n(iii) A representative of the purchasing entity must attend the informational meeting to present its plans for the acquisition and improvement of the project and to respond to questions about the purchaser's plans for the property.\n\n(iv) Tenants shall have the opportunity, but are not to be required, to vote for or against the acquisition at the informational meeting.\n\n(v) For the purpose of obtaining tenant endorsement, a purchaser may conduct additional meetings with tenants in accordance with the notice requirements of paragraphs (e)(2) and (e)(3) of this section.\n\n(2)  Parties who must receive notice.  The purchaser must deliver notice of the informational meeting, and any subsequent meeting, to each tenant household in the project and any tenant organization for the project, and post notices of the meeting in the project.\n\n(3)  Notice contents.  The notice must identify the place, date, and time of the informational meeting, and any subsequent meeting. Include a brief description of the purpose of the meeting and provide a narrative outlining the purchaser's plans for the project, including any request made to HUD for debt relief under \u00a7 401.461(b)(5) of the second and any additional mortgage.\n\n(4)  Tenant endorsement.  (i) A purchaser may demonstrate that it is tenant endorsed by submitting documentation to HUD that a majority (51 percent) of the tenant heads of household have given their endorsement in writing. Such documentation may include, but is not limited to, ballots, letters of support, or petitions. The endorsement of tenants who did not attend, or vote at, the informational meeting, or any subsequent meeting, may be sought directly from each of these tenants subsequent to the meeting.\n\n(ii)(A) If the purchaser has made a reasonable effort to obtain the endorsement of a majority (51 percent) of the tenants and the necessary percentage of votes was not obtained, the purchaser may seek HUD approval to obtain endorsement based on a lower percentage of endorsing tenants.\n\n(B) The purchaser must deliver notice to each tenant household that the purchaser is seeking HUD approval of a tenant endorsement based on less than 51 percent of tenant approval and provide tenants with at least 10 days from the date of the notice to submit comments to the purchaser on the approval of endorsement.\n\n(C) The purchaser and/or seller must submit, in writing, to HUD an account of the efforts taken to secure tenant endorsement, the number and percentage of tenants voting for and against endorsement, and any comments received from tenants regarding the approval of endorsement.\n\n(D) HUD will determine whether or not to approve endorsement on the basis of all the information available to HUD and will promptly notify the purchaser of HUD's determination."], ["24:24:2.1.3.5.2.3.221.26", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.481 Subsidy layering limitations on HUD funds.", "HUD", "", "", "", "(a)  PAE subsidy layering certification required for Restructuring Plan.  The PAE must certify to HUD that any Restructuring Plan for which it submits a proposed Restructuring Commitment meets the requirements of either paragraph (d) or (e) of this section.\n\n(b)  Purpose of subsidy layering certification.  The purpose of the subsidy layering certification is to ensure that any HUD assistance provided to the owner of a project pursuant to a Restructuring Plan is no more than is necessary to permit the project to continue to house tenants with an income mix comparable to the income mix of the project before the Restructuring Plan is implemented, after taking into account other Government assistance described in section 102(b)(1) of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(b)(1)). This section does not limit a PAE from presenting for approval a Restructuring Plan that includes project reconfiguration ( e.g.,  conversion of efficiency units to one-bedroom units) where necessary to meet the needs of the community, provided the conditions of \u00a7 401.452 are also met.\n\n(c)  Relationship to section 102(d) of HUD Reform Act.  HUD is not required to perform a separate subsidy layering analysis under section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)), section 911 of the Housing and Community Development Act of 1992 (42 U.S.C. 3545 note), or \u00a7 4.13 of this title for any HUD assistance that is included in the Restructuring Plan. HUD will adopt the PAE certification under this section if a HUD certification otherwise would be required under section 102(d).\n\n(d)  Certification under existing HUD guidelines.  If the PAE has delegated authority from HUD to make section 102(d) subsidy layering certifications in accordance with section 911 of the Housing and Community Development Act of 1992, the PAE may comply with this section by using a procedure substantially similar to the procedure described in the Administrative Guidelines published on December 15, 1994 (59 FR 64748), or any subsequent procedure adopted by HUD to implement section 911.\n\n(e)  Other procedures.  If the PAE does not have the delegated authority described in paragraph (d) of this section, the PAE must submit to HUD for approval proposed procedures for making the subsidy layering certification under this section. Any procedures must conform to the procedures described in paragraph (d) of this section to the extent feasible and appropriate."], ["24:24:2.1.3.5.2.3.221.27", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.500 Required notices to third parties and meeting with third parties.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66040, Nov. 26, 2007]", "(a)  General.  The PAE must solicit, and document the consideration of, tenant and local community comments. As a minimum, the notices described in paragraphs (b), (c) and (f) of this section, in form and substance acceptable to HUD, must be provided. The PAE may require the owner to give the notices if permitted by HUD.\n\n(b)  Notice of intent to restructure and consultation meeting.  (1) This notice must include at a minimum:\n\n(i) The project, including its name and FHA Project Number;\n\n(ii) The responsible PAE and contact person, including the address and telephone number;\n\n(iii) The owner's notice of intent to restructure through the Mark-to-Market Program; and\n\n(iv) The date of expiration of the project-based assistance.\n\n(2) This notice must state how comments may be provided to the PAE regarding any of the following: the physical condition of the property, whether the rental assistance should be tenant-based or project-based, any proposed sale or transfer of the property, and other matters regarding the property and its management. The notice must establish the date, time, and place for a public meeting to be held no sooner than 20 days and no later than 40 days following the date of this notice. The public may provide written comments up to the date of the meeting.\n\n(c)  Access to Restructuring Plan.  (1) The PAE must make the Restructuring Plan available to the parties identified in \u00a7 401.501 at least 20 days before the PAE submits the Restructuring Plan to HUD (subject to any Federal, State, or local laws restricting access to any information in the Plan or related documents).\n\n(2) As soon as the PAE determines that the Restructuring Plan is substantively complete and ready for submission to HUD, notice of the following must be provided:\n\n(i) The location of the Plan for inspection and copying; and\n\n(ii) The date, time, and place of a public meeting to be held at least 10 days before the PAE submits the Plan to HUD.\n\n(3) When the PAE gives notice under this section, it must make the Plan available during normal business hours at the management office of the project, or if there is no such office, at another location specified by the PAE that is convenient to the tenants.\n\n(d)  Meeting to discuss the Restructuring Plan.  After the PAE has given notice under this section and at least 10 days before the PAE submits the Plan to HUD, the PAE must conduct a public meeting to obtain comments on the substantively completed Plan. The PAE must accept written comments through the date of the meeting.\n\n(e)  Disposition of comments.  The PAE must document and provide to HUD with the Restructuring Plan a summary of the disposition of all public comments.\n\n(f)  Notice of completion of Restructuring Plan.  (1) Within 10 days after the owner executes the Restructuring Commitment, notice must be provided that describes the completed Restructuring Plan and Restructuring Commitment. The PAE must make the completed Restructuring Plan and Restructuring Commitment available during normal business hours to the public at a place described in paragraph (c)(3) of this section, subject to Federal, State, or local laws restricting access to any information in any of these documents.\n\n(2) Within 10 days after a determination that the Restructuring Plan will not move forward for any reason, HUD or the PAE shall provide notice to affected tenants that describes the reasons for the failure of the Plan to move forward and the availability of tenant-based assistance under \u00a7 401.602(c)."], ["24:24:2.1.3.5.2.3.221.28", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.501 Delivery of notices and recipients of notices.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  Whom must the owner or PAE notify?  The PAE must notify, or ensure that the owner notifies, each tenant and any tenant organization for the project, and post a notice in the project, for all notices required by \u00a7\u00a7 401.500 and 401.502.\n\n(b)  Whom must the PAE notify?  The PAE must notify:\n\n(1) The Chief Executive Officer of the unit of local government and the Executive Director of the Public Housing Authority with jurisdiction over the project location;\n\n(2) The recipient of any Outreach and Training Grant (OTAG) or Intermediary Technical Assistance Grant (ITAG) for the project location; and\n\n(3) Other appropriate neighborhood representatives and other affected parties."], ["24:24:2.1.3.5.2.3.221.29", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.502 Notice requirement when debt restructuring will not occur.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  PAE responsibility.  If an owner of an eligible project requests a renewal of a section 8 contract without a Restructuring Plan under \u00a7 402.4 of this chapter, HUD or the PAE must notify, or ensure that the owner notifies, all parties identified in \u00a7 401.501 of the request and of:\n\n(1) The availability (as provided in \u00a7 401.500(c)(3)) of the following information:\n\n(i) The owner evaluation of physical condition (OEPC), or a comprehensive needs assessment (CNA) if used instead of an OEPC, as required by \u00a7 401.450 and \u00a7 402.6(a)(3) of this chapter;\n\n(ii) The market analysis required by \u00a7 402.6(a)(2) of this chapter, but without addresses (or other specific information indicating location) for comparable properties; and\n\n(iii) The items identified in \u00a7 401.500(b)(1)(i), (ii), and (iv); and\n\n(2) A procedure for submitting public comments regarding this information.\n\n(b)  Expense and profit/loss information.  The PAE should remove project expense, property valuation, and profit and loss information before disclosing any information obtained by the PAE directly from an owner or project manager, unless the owner has given written consent to disclosure with that information included.\n\n(c)  Consideration of comments.  The PAE must consider written public comments on the information listed in paragraph (a) of this section, if the comments are submitted within 30 days after giving notice under paragraph (a), and document the consideration for HUD. No public meeting is required."], ["24:24:2.1.3.5.2.3.221.3", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.402 Cooperation with owner and qualified mortgagee in Restructuring Plan development.", "HUD", "", "", "", "A PAE must comply with section 514(a)(2) of MAHRA by using its best efforts to seek the cooperation of the owner and qualified mortgagee or its designee in the development of the Restructuring Plan. If the owner fails to cooperate (as demonstrated by reasonable progress in development of a Restructuring Plan) to the satisfaction of the PAE and HUD agrees, the PAE must notify the owner that the PAE will not develop a Restructuring Plan. This notice will be subject to dispute and administrative appeal under subpart F of this part. If the qualified mortgagee does not cooperate in modifying the mortgage, the PAE and owner may continue to develop a Restructuring Plan to restructure the loan using alternative financing."], ["24:24:2.1.3.5.2.3.221.30", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.503 Access to information.", "HUD", "", "", "", "(a)  PAE responsibilities.  The PAE must provide to parties entitled to notice under \u00a7 401.501 access to information obtained by the PAE about the project and its management if the PAE determines that such information is reasonably likely to contribute to effective participation by those parties in the restructuring process, or if HUD requires the PAE to provide access to the information. The PAE is not required to make public any information received from the owner or manager that the PAE reasonably characterizes as confidential or proprietary information that would not ordinarily be made public, except:\n\n(1) Owner evaluation of physical condition (OEPC), or a comprehensive needs assessment (CA) if used instead of an OEPC, as required by \u00a7 401.450;\n\n(2) Owner-prepared 1-year project rent analysis; and\n\n(3) As directed by HUD.\n\n(b)  Information on expenses and profit/loss.  Before disclosing any information, the PAE must remove any information obtained by the PAE directly from the owner or project manager that is related to project expenses, property valuation, or profit and loss, unless the owner gives written consent to disclosure with that information."], ["24:24:2.1.3.5.2.3.221.4", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.403 Rejection of a request for a Restructuring Plan because of actions or omissions of owner or affiliate or project condition.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 72 FR 73496, Dec. 27, 2007]", "(a)  Ongoing determination of owner and project eligibility.  Notwithstanding an initial determination to accept the owner's request for a Restructuring Plan, the PAE is responsible for a further more complete and ongoing assessment of the eligibility of the owner and project while the Restructuring Plan is developed. The PAE must advise HUD if at any time any of the grounds for rejection listed in paragraph (b) of this section exist.\n\n(b)  Grounds for rejection \u2014(1)  Suspension or debarment.  Neither a PAE nor HUD will continue to develop or consider a Restructuring Plan if, at any time before a closing under \u00a7 401.407, the owner is debarred or suspended under 2 CFR part 2424.\n\n(2)  Other grounds.  HUD may elect not to permit continued consideration of the Restructuring Plan at any time before closing under \u00a7 401.407, if:\n\n(i) An affiliate is debarred or suspended under 2 CFR part 2424;\n\n(ii) HUD or the PAE determines that the owner or an affiliate has engaged in material adverse financial or managerial actions or omissions as described in section 516(a) of MAHRA, including any outstanding violations of civil rights laws in connection with any project of the owner or affiliate; or\n\n(iii) HUD or the PAE determines (under \u00a7 401.451(c) or otherwise) that the project does not meet the housing quality standards in \u00a7 401.558 and that the poor condition of the project is not likely to be remedied in a cost-effective manner through the Restructuring Plan.\n\n(3)  Exception for sale.  This paragraph does not apply (except (2)(iii)) if a sale or transfer is proposed under \u00a7 401.480.\n\n(c)  Dispute and appeal.  An owner may dispute a rejection under this section and seek administrative review under the procedures in subpart F of this part."], ["24:24:2.1.3.5.2.3.221.5", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.404 Proposed Restructuring Commitment.", "HUD", "", "", "", "A PAE must submit a Restructuring Plan and a proposed Restructuring Commitment to HUD for approval, prior to submitting the Commitment to the owner for execution. The submission may not occur earlier than 10 days after the public meeting required by \u00a7 401.500(d). The proposed Restructuring Commitment must be in a form approved by HUD, incorporate the Restructuring Plan, and include the following:\n\n(a) The lender, loan amount, interest rate, and term of any mortgages or unsecured financing for the mortgage restructuring and rehabilitation, and any credit enhancement;\n\n(b) The amount of any payment of a section 541(b) claim;\n\n(c) The type of section 8 assistance and the section 8 restructured rents;\n\n(d) The rehabilitation required, the source of the owner contribution, and escrow arrangements;\n\n(e) The uses for project accounts;\n\n(f) The terms of any sale or transfer of the project;\n\n(g) A schedule setting forth all sources and uses of funds to implement the Restructuring Plan, including setting forth the balances of project accounts before and after restructuring;\n\n(h) All consideration, direct or indirect, received or to be received by the PAE or a related party, if known, in connection with any matter addressed in the Restructuring Commitment, except amounts paid or to be paid by HUD; and\n\n(i) Other terms and conditions prescribed by HUD."], ["24:24:2.1.3.5.2.3.221.6", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.405 Restructuring Commitment review and approval by HUD.", "HUD", "", "", "", "HUD will either approve the Restructuring Commitment as submitted, require changes as a condition for approval, or reject the Plan. If the Plan is rejected, HUD will inform the PAE of the reasons for rejection, and the PAE will inform the owner. HUD's rejection of the Plan is subject to the dispute and administrative appeal provisions of subpart F of this part."], ["24:24:2.1.3.5.2.3.221.7", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.406 Execution of Restructuring Commitment.", "HUD", "", "", "", "When HUD approves the Restructuring Commitment, the PAE will deliver the Restructuring Commitment to the owner for execution. The Restructuring Commitment becomes binding upon execution by the owner. An owner who does not execute the Restructuring Commitment may appeal its terms and seek modification under subpart F of this part."], ["24:24:2.1.3.5.2.3.221.8", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.407 Closing conducted by PAE.", "HUD", "", "", "", "After the owner has executed the Restructuring Commitment, the PAE must arrange for a closing to execute all documents necessary for implementation of the Restructuring Plan. The PAE must use standard documents approved by HUD, with modifications only as necessary to comply with applicable State or local laws, or such other modifications as are approved in writing by HUD."], ["24:24:2.1.3.5.2.3.221.9", 24, "Housing and Urban Development", "IV", "", "401", "PART 401\u2014MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)", "C", "Subpart C\u2014Restructuring Plan", "", "\u00a7 401.408 Affordability and use restrictions required.", "HUD", "", "", "[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]", "(a)  General.  The Restructuring Plan must provide that the project will be subject to affordability and use restrictions in a Use Agreement acceptable to HUD. The Use Agreement must be recorded and in effect for at least 30 years. It must include at least the provisions required by paragraphs (b) through (j) of this section.\n\n(b)  Use restriction.  The project must continue to be used for residential use with no reduction in the number of residential units without prior HUD approval.\n\n(c)  Affordability restrictions.  Except during a period when at least 20 percent of the units in a project receive project-based assistance:\n\n(1) At least 20 percent of the units in the project must be leased to families whose adjusted income does not exceed 50 percent of the area median income as determined by HUD, with adjustments for household size, at rents no greater than 30 percent of 50 percent of the area median income; or\n\n(2) At least 40 percent of the units in the project must be leased to families whose adjusted income does not exceed 60 percent of the area median income as determined by HUD, with adjustments for household size, at rents no greater than 30 percent of 60 percent of the area median income.\n\n(d)  Comparable configuration.  The type and size of the units that satisfy the affordability restrictions of paragraph (c) of this section must be comparable to the type and size of the units for the project as a whole.\n\n(e)  Nondiscrimination against voucher holders.  An owner must comply with the nondiscrimination provisions of \u00a7 401.556.\n\n(f)  Enforcement.  The Use Agreement must contain remedies for breach of the Use Agreement, including monetary damages for non-compliance with paragraphs (c) and (g) of this section.\n\n(g)  Compliance with physical condition standards.  The Use Agreement must require that the property be maintained in compliance with the requirements of \u00a7 401.558.\n\n(h)  Reporting.  The Use Agreement must contain appropriate financial and other reporting requirements for the owner. These reports must comply with the Real Estate Assessment Center protocol or subsequent standards required by HUD.\n\n(i)  Enforcement and amendment.  The Use Agreement will be enforceable by interested parties to be specified in the Agreement, which will include HUD, the PAE, project tenants, organizations representing project tenants, and the unit of local government. The Use Agreement must require the party bringing enforcement action to give the owner notice and a reasonable opportunity to cure any violations.\n\n(j)  Modifications.  HUD will retain the right to approve modifications of the Use Agreement agreed to by the owner without the consent of any other party, including those having the right of enforcement. The owner must post prominently on project property notice of any modifications approved by HUD.\n\n(k)  Owner obligation to accept project-based assistance.  Subject to the availability of appropriated funds, the owner of the project must accept any offer of renewal of project-based assistance if the offer is in accordance with the terms and conditions specified in the Restructuring Plan."]], "truncated": false, "filtered_table_rows_count": 328, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"part_number\" = :p0 order by section_id limit 101", "params": {"p0": "401"}}, "facet_results": 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