(2) State and Territorial Taxes. The offi-
cer making the transfer or sale of gasoline avoid loss to the Navy Stock Fund, navala. Addition to Standard Price. In order to
and other motor vehicle fuels, by or through Navy exchanges, filling stations, or other similar agencies located on military reserva- tions, will submit, on or before the fifteenth day of each month, a written statement to the proper tax authority of the state, territory, or the District of Columbia, where located, showing the amount of gasoline or other motor vehicle fuels with respect to which taxes are payable for the preceding month. When the taxes imposed by any authority are limited to a tax on sales, the following form is pre- scribed for the report to be submitted to the taxing authority.
,
1 9T o : State Tax
C o m m i s s i o n ,
Subj: Motor vehicle fuel tax (Act of July 30, 1947 (61 Stat. 644) as amended (4 U.S. Code 104))
In accordance with the Act of July 30, 1947 the sum of $ _____has been collected upon
sales of gasoline and other motor vehicle
fuels not for the exclusive use of the United States made by or through (name of activity) an agency designated in said act located at the (naval shipyard or station), during the preceding month ending at midnight (calendar
month, day, 19_) amount of which was
gallons. It is requested that a bill, in duplicate, cove ring the amount of tax indi-
cated herein be furnished to .
Immediately upon receipt of such bill, pay- ment of the tax will be made.
Commanding officer” Upon receipt, the bill from the appropriate taxing authority will be approved, if correct, and will be forwarded to the disbursing of-
activities storing, issuing, or transferring petroleum products subject to such taxes will add the applicable federal excise, state, and local taxes to the standard or local carry- ing price.
b. Refunds. Tax refunds will be obtained. in accordance with the instructions provided in the list of State Motor Vehicle Taxes attached to the Defense Fuel Supply Center contract bulletins. Applications for refund will be, made on either the U.S. Government Tax Exemption Certificate (Standard Form 1094) or on forms prescribed by the individ- ual state. The responsibility for applying for tax refunds is placed upon the activity requi- sitioning the product from the Navy Stock Account, and any refund will be credited to, the allotment of that activity.
25848 PLANT ACCOUNT PROPERTY
Transfers of plant account property will be accomplished as provided in the Navy Comptroller Manual, Volume 3.
25849
MATERIAL ISSUED ON A LOAN BASIS1 . G E N E R A L
a. Applicability. Instructions in subpars. 2 through 8 supplement and explain the means of effecting loans of personal property as legally authorized by providing loan criteria,
approval authority, and specifics of loan
agreements. They are applicable to the loan of personal property. ashore between the Navy and Marine Corps and to other com- ponents of the Department of Defense, other government departments and agencies, state or local governments, organizations, and private parties (other than personal property
instructions do not supersede or modify other instructions applicable to specific loans of personal property and the latter shall govern in case of conflict.
b. Types of Property Covered. Instruc- tions in subpars. 2 through 8 are applicable to personal property in store financed by either a stock fund or an appropriation and to personal property in use classified as plant property (classes 3 and 4), special tooling, and minor plant equipment except equipments financed by the Navy Industrial Fund. They are not applicable to the fol- lowing:
1.
2.
3.
4.
personal property in store and minor plant equipment in use financed by the Navy Industrial Fund,
personal property provided to contrac- tors (see Navy Comptroller Manual, par. 035600),
personal property issued to prospec- tive Navy contractors to be used in conjunction with the submission of bids, property loaned to foreign governments under the Foreign Assistance Act of
1961 (75 Stat. 424), as amended.
c. Definition. A loan is defined as the granting of permission to use personal prop- erty without compensation on the condition that it will be returned without cost to the Department of the Navy in a condition as good as when loaned, reasonable wear and t e a r e x c e p t e d . I n t r a - N a v y m o v e m e n t s o f stores account material will not be a loan, but an issue to end-use or transfer between other supply officers in accordance with NAVCOMPT Manual, par. 035655-4 item 7.
2. POLICY. Personal property may be
loaned by the Department of the Navy only when legally authorized and when clearly in the interest of the Department of the Navy, the national defense, or the general public. Requests for loans not legally au- thorized and not clearly in the interest of the Navy, the national defense, or the general public, or which would result in unnecessary dissipation of property will be denied. Loans of personal property will not be encouraged or promoted.
3. AUTHORITY. Various authorities exist for the loan of specified property to specific activities under certain circumstances, such as 10 U.S. Code 2541, loans to recognized
veterans’ organizations; Act of August 12,
1946 (60 Stat. 998) (20 U.S. Code 77d), loans to the Smithsonian Institution; and Art. 1263, N.R., loans to states for use by naval militia. The legal authority for a loan will be determined by counsel for the cognizant pri- mary support bureau, ‘command, office, or activity concerned, or by regional counsel in the case of any local activity where counsel is not assigned. In all cases not covered by
.
the foregoing, a request for determination of legality will be referred by or via the Chief of Naval Operations, the Commandant of the Ma- rine Corps, or the commander of the primary support bureau; command, or office having cognizance over the property to the General Counsel for the Department of the Navy.
4. CRITERIA. In addition to the basic legal requirements, loans also will meet the fol- lowing criteria: 1. 2. ‘3. 4. 5. 6. 7. l o a n s w i l l n o t c a u s e t h e l e n d e r t o purchase a replacement item or re- distribute assets;
the loan of stock account material will be limited to the purposes provided in the Navy Comptroller Manual, Volume
2, Appendix B;
loans of Navy Stock Account material will receive the prior approval of the Naval Supply Systems Command; the loan will not be expected to result in a loss through undue wear and tear or misuse;
the borrower will be financially re- sponsible.
the loan will be for a determinable and limited time; loans normally will not be in excess of 90 days (renewable for successive 90 day periods not to exceed a total loan period of one year) for stock account material, and one year (renewable for successive periods not exceeding one year at a time) for non- stock account items; at the end of a
year, all stock account material on
loan will be returned or reimbursement
will be obtained; the normal initial
loan period of one year for nonstock account items may be exceeded at the discretion of the Chief of Naval Op- erations, the Commandant of the Marine Corps, and the commanders of the bur- eaus, commands, or offices having cog- nizance over the property to be loaned; loans of stores account material will . not be made to another naval activity. Intra-Navy movement of stores account material will be an issue to end use or a transfer to another accountable officer (see Navy Comptroller Manual, par. 0 3 4 0 0 4 ) .
5. APPROVAL. Request for loans will be approved by the Chief of Naval Operations, bureau, command, office, or inventory control point having cognizance over property, ex- cept when applicable orders, regulations, or instructions authorize approval by subordi- . nate management levels. For loans requiring Secretary of the Navy approval, see Navy Comptroller Manual, par. 035655-5c.
6. L O A N A G R E E M E N T R E Q U I R E M E N T S
a. General. Upon approval of the loan, a written loan agreement will be signed by
M a t e r i a l E x p e n d i t u r e 258419
the lender and the borrower. The loan agree- ment will include such of the provisions of subpars. b through d as are appropriate to the-type of borrower and the type of property loaned.
b. Loans within the Department of Defense. Loans within the Department of Defense may be evidenced by custody receipt or letter which will include the following:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. authority;
the purpose, including a statement as to why the loan is required and the reason that the borrower does not utilize other m cans;
time period;
description and condition of the prop- e rt y;
provision for title to remain within the Department of the Navy;
statement of obligation by the borrower to protect all proprietary, patent, and industrial rights in the property, the information furnished with the property, and the information derived from it; statement that the borrower will assume
all liabilitiess, responsibilities, and
costs incurred incident to the loan of
property, such as removal of material
from storage, crating, handling, pack- ing, transportation, activation, conver- sion, operation, repair, return and re- placement of material in storage; statement safeguarding classified mili- tary information and property, includ- ing an agreement upon the security clas- sification to be assigned the property, and the policy to be followed regarding downgrading, declassifying and releas- ing information to the public;
declaration of value (the value to be used is the value at which the material normally would be is sued to a Navy or Marine Corps activity or at which the property is carried in the plant property account);
provision for a bond or insurance when specifically required bylaw or adminis- trative regulation, or at the discretion of the approving authority when no spe- cific requirement exists;
statement as to whether technical per- sonnel are required to accompany the property;
statement as to who will support the property while on loan;
statement that the borrower assumes all risk of loss or damage and will return the property in as good condition as when lent, reasonable wear and tear excepted, and that expense of placing it in such condition will be borne by borrower; a statement that in case of emergency, or when it is determined to be in the best interest of’ the Government, the Department of the Navy reserves the right to revoke all or- any part of the agreement;
15. a statement that the borrower will in- demnify the Government for all third- party liability arising in connection with the property during the period of loan.
c. Loans to Agencies of the Federal Gov-
ernment Other Than the Department of De- fense. For loans to agencies of the Federal Governrnent other than the Department of Defense, the agreement set forth in subpar. 7
will be used. -
d. Loans to State and Local Agencies, Non- profit Institutions, and P r i v a t e Parties. Loans to state and local agencies, non-profit institutions, and private parties will be evi- denced by a loan agreement prepared by counsel for the bureau, command, office, or agency concerned.
e. Disposition of Loan Agreement. The
original of the loan agreement will be retained on file by the lender and a signed copy will be furnished the borrower. A copy to the Navy Regional Finance Center, Property Account- ing Department, Washington, D. C., for review to ensure that loans of Navy- owned material are made in accordance with Navy Comp- troller Manual, par. 034122-3.
f. Other Circumstances. T h e p r o v i -
sions of subpars. a - d are not intended to
preclude a loan of property in the event of a valid medical emergency or under other compelling circumstances, as determined by competent authority under Art. 0627, Nav. Regs.; however, such measures as are war- ranted and feasible at the time will be taken to
protect the interests of the Government.
Any special situation for which the pro- visions of subpars. b or c are not appropriate, or any contemplated provisions different or beyond those specified in the format provided in subpar. 7 will be approved by counsel for the bureau, command, office, or agency concerned prior to execution by the author- ized Navy representative.
7 . L O A N A G R E E M E N T F O R M A T . T h e l o a n a g r e e m e n t w i l l b e p r e p a r e d i n t h e following format:
DEPARTMENT OF THE NAVY,
Naval Command,
Washington, D.C.
LOAN AGREEMENT Between
DEPARTMENT OF THE NAVY,
Naval Command
and
(Federal Agency)
THIS AGREEMENT, entered into as of the
"NAVY") represented by the Commander)
Naval Command or his duly au-
thorized representative executing this agree- ment, and the DEPARTMENT OF
(hereinafter sometimes referred to as the "BORROWER") represented by an official thereof authorized to execute this agreement.
WITNESSETH:
WHEREAS, the BORROWER has requested a loan of the property listed in Schedule .1, hereto attached (hereinafter referred to as the “Items”) for the purpose of
WHEREAS, the NAVY is willing to loan the property covered by this “agreement under the authority of Section 601 of the. Economy Act of June 30, 1932, as amended (31 U.S. Code 686).
NOW THEREFORE, in consideration of the premises and the terms and conditions here- inafter set forth, the parties hereto agree as follows:
1. The NAVY does hereby loan to the BORROWER the items listed in Schedule 1, hereto attached.
2. PERIOD OF LOAN. The use of the property by the BORROWER shall terminate _months after the date first above written unless the Agreement is sooner terminated by the NAVY pursuant to paragraph 8 hereof. 3. The NAVY makes no representation of warranty either as to the condition of the property or as to its usefulness for any purpose whatsoever.
4. Title to the property shall remain with the NAVY during the period of this loan.
5. THE BORROWER shall:
(a) Pay all costs incident to preparation of the Items for shipment and transporta- tion and, upon expiration or termination of the loan period, pay all costs incident to the return of the Items, including costs necessary to prepare the Items for storage or rein- stallation (if the Items at the commencement of the loan period were installed at NAVY facilities).
(b) Maintain, protect, preserve, and repair the Items, including necessary replacement of parts, and return such Items in. as good a condition as when received, normal wear and tear excepted.
(c) Replace the Items in the event of loss or damage or, at the option of NAVY, re-
imburse NAVY for value thereof..
poses other than specified in the first above recital.
6. The BORROWER shall protect all pro- prietary, patent, and industrial rights in the property, the information furnished with the property, and the information derived from it. 7. The BORROWER shall “safeguard any classified military information or property loaned under this agreement to the extent that the NAVY shall, by separate written in- structions, advise the BORROWER of such
classification and the policies regarding
downgrading, declassification, and release of information to the public.
8. The NAVY reserves the right to termi- nate this Agreement as to the Item loaned whenever it determines that it requires im- mediate use thereof.
In WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
DEPARTMENT OF THE NAVY B y
D E P A R T M E N T O F B y
T i t l e
8. RESPONSIBILITY FOR RETURN OF OR