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Understanding Exempt Property [Education]: A Comprehensive Guide
Definition & Meaning
Exempt property refers to tangible personal property that has been acquired, either fully or partially, using federal funds. The Secretary of Education has the authority to grant ownership of this property to the recipient without imposing further obligations to the federal government. A common example of this is found in the Federal Grant and Cooperative Agreement Act, which allows non-profit institutions of higher education or research organizations to retain ownership of property purchased with federal grant money for research purposes.
Table of content
Legal Use & context
This term is primarily used in the context of federal grants and agreements, particularly in education and research funding. It is relevant in legal practices involving grant administration, compliance with federal regulations, and property management. Users may encounter forms and procedures related to exempt property when applying for grants or managing assets acquired through federal funding. Resources like US Legal Forms can provide templates and guidance for these processes.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
A university receives a federal grant to conduct scientific research and purchases laboratory equipment. This equipment is considered exempt property, allowing the university to retain ownership after the grant period ends.
A non-profit organization uses federal funds to buy computers for educational programs. These computers qualify as exempt property, meaning the organization can keep them without further obligations to the government.
Relevant laws & statutes
The primary law governing exempt property is the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306). This statute outlines the conditions under which property acquired with federal funds can be transferred to recipients without additional federal obligations.
Comparison with related terms
Term
Definition
Key Differences
Exempt Property
Tangible personal property acquired with federal funds, with ownership transferred without further obligations.
Specific to federal grants and educational institutions.
Federal Property
Property owned by the federal government.
Federal property remains under government control and is not exempt from obligations.
Grant Property
Property purchased with grant funds.
Not all grant property is exempt; it depends on the terms of the grant.
Common misunderstandings
What to do if this term applies to you
If you are involved in a project funded by federal grants and have acquired property, ensure you understand the terms regarding exempt property. You may want to:
Review the grant agreement for specific terms related to property ownership.
Consult with a legal professional for guidance on compliance and obligations.
Explore US Legal Forms for templates and resources to help manage the property appropriately.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
Non-profit educational institutions and research organizations.
Key takeaways
Frequently asked questions
Exempt property is tangible personal property acquired with federal funds, which can be owned by the recipient without further obligations to the federal government.
Typically, non-profit educational institutions and research organizations qualify for exempt property status.
No, exempt property must be used according to the terms of the federal grant under which it was acquired.
Consult the grant agreement and consider seeking advice from a legal professional for specific guidance.
US Legal Forms offers templates and resources that can assist you in managing legal documents related to exempt property.