Source: https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=pt31.3.802&rgn=div5
Timestamp: 2020-02-24 13:19:42
Document Index: 530794513

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Title 31 → Subtitle B → Chapter VIII → Part 802
§802.101 Scope.
§802.102 Risk-based analysis.
§802.103 Effect on other law.
§802.104 Applicability rule.
§802.105 Rules of construction and interpretation.
§802.201 Business day.
§802.202 Certification.
§802.203 Close proximity.
§802.204 Committee; Chairperson of the Committee; Staff Chairperson.
§802.205 Completion date.
§802.206 Concession.
§802.207 Contingent equity interest.
§802.208 Control.
§802.209 Conversion.
§802.210 Covered port.
§802.211 Covered real estate.
§802.212 Covered real estate transaction.
§802.213 Entity.
§802.214 Excepted real estate foreign state.
§802.215 Excepted real estate investor.
§802.216 Excepted real estate transaction.
§802.217 Extended range.
§802.218 Foreign entity.
§802.219 Foreign government.
§802.220 Foreign national.
§802.221 Foreign person.
§802.222 Hold.
§802.223 Housing unit.
§802.224 Investment fund.
§802.225 Lead agency.
§802.226 Lease.
§802.227 Military installation.
§802.228 Minimum excepted ownership.
§802.229 Parent.
§802.230 Party to a transaction.
§802.231 Person.
§802.232 Principal place of business.
§802.233 Property right.
§802.234 Purchase.
§802.235 Real estate.
§802.236 Section 721.
§802.237 Transaction.
§802.238 United States.
§802.239 Urban cluster.
§802.240 Urbanized area.
§802.241 U.S. business.
§802.242 U.S. national.
§802.243 U.S. public entity.
§802.244 Voting interest.
§802.301 Transactions that are covered real estate transactions.
§802.302 Transactions that are not covered real estate transactions.
§802.303 Lending transactions.
§802.304 Timing rule for a contingent equity interest.
§802.401 Procedures for declarations.
§802.402 Contents of declarations.
§802.403 Beginning of 30-day assessment period.
§802.404 Rejection, disposition, or withdrawal of declarations.
§802.405 Committee actions.
§802.501 Procedures for notices.
§802.502 Contents of voluntary notices.
§802.503 Beginning of 45-day review period.
§802.504 Deferral, rejection, or disposition of certain voluntary notices.
§802.505 Determination of whether to undertake an investigation.
§802.506 Determination not to undertake an investigation.
§802.507 Commencement of investigation.
§802.508 Completion or termination of investigation and report to the President.
§802.509 Withdrawal of notices.
Subpart F—Committee Procedures
§802.601 General.
§802.602 Role of the Secretary of Labor.
§802.603 Materiality.
§802.604 Tolling of deadlines during lapse in appropriations.
Subpart G—Finality of Action
§802.701 Finality of actions under section 721.
Subpart H—Provision and Handling of Information
§802.801 Obligation of parties to provide information.
§802.802 Confidentiality.
Subpart I—Penalties and Damages
§802.901 Penalties and damages.
§802.902 Effect of lack of compliance.
Subpart J—Foreign National Security Investment Review Regimes
§802.1001 Determinations.
§802.1002 Effect of determinations.
Appendix A to Part 802—List of Military Installations and Other U.S. Government Sites
Source: 85 FR 3166, Jan. 17, 2020, unless otherwise noted.
(a) Section 721 of title VII of the Defense Production Act of 1950, as amended (50 U.S.C. 4565) authorizes the Committee on Foreign Investment in the United States to review transactions involving real estate that meet specified criteria, which are referred to in this part as “covered real estate transactions” and defined at §802.212, and to mitigate any risk to the national security of the United States that arises as a result of such transactions. Section 721 also authorizes the President to suspend or prohibit any covered real estate transaction when, in the President's judgment, there is credible evidence that leads the President to believe that the foreign person engaging in a covered real estate transaction might take action that threatens to impair the national security of the United States, and when provisions of law other than section 721 and the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) do not, in the judgment of the President, provide adequate and appropriate authority for the President to protect the national security of the United States in the matter before the President.
(b) This part implements regulations pertaining to covered real estate transactions. Regulations pertaining to “covered transactions” are addressed in part 800 of this chapter.
Any determination of the Committee with respect to a covered real estate transaction, to suspend, refer to the President, or to negotiate, enter into or impose, or enforce any agreement or condition under section 721 shall be based on a risk-based analysis, conducted by the Committee, of the effects on the national security of the United States of the covered real estate transaction. Any such risk-based analysis shall include credible evidence demonstrating the risk and an assessment of the threat, vulnerabilities, and consequences to national security related to the transaction. For purposes of this part, any such analysis of risk shall include and be informed by consideration of the following elements:
(a) The threat, which is a function of the intent and capability of a foreign person to take action to impair the national security of the United States;
(b) The vulnerabilities, which are the extent to which the nature of the covered real estate presents susceptibility to impairment of national security; and
(c) The consequences to national security, which are the potential effects on national security that could reasonably result from the exploitation of the vulnerabilities by the threat actor.
(a) Except as provided in paragraph (b) of this section and otherwise in this part, the regulations in this part apply from February 13, 2020.
(1) The completion date is prior to February 13, 2020; or
(2) The parties to the transaction have executed, prior to February 13, 2020, a binding written agreement, or other binding document, establishing the material terms of the transaction.
(a) The examples included in this part are provided for informational purposes and should not be construed to alter the meaning of the text of the regulations in this part.
(b) As used in this part, the term “including” means “including but not limited to.”
The term business day means Monday through Friday, except the legal public holidays specified in 5 U.S.C. 6103, any day declared to be a holiday by federal statute or executive order, or any day with respect to which the U.S. Office of Personnel Management has announced that Federal agencies in the Washington, DC, area are closed. For purposes of calculating any deadline imposed by this part triggered by the submission of a party to a transaction under §802.501(i), any submissions received after 5 p.m. Eastern Time are deemed to be submitted on the next business day.
Note 1 to §802.201: See §802.604 regarding the tolling of deadlines during a lapse in appropriations.
(a) The term certification means a written statement signed by the chief executive officer or other duly authorized designee of a party filing a notice, declaration, or information, certifying under the penalties provided in the False Statements Accountability Act of 1996, as amended (18 U.S.C. 1001) that the notice, declaration, or information filed:
(i) The transaction; and
(ii) The party providing the certification, including its parents, subsidiaries, and any other related entities described in the notice, declaration, or information.
(3) In the case of any entity lacking partners, officers, and directors, any individual within the organization exercising executive functions similar to those of a general partner of a partnership or an officer or director of a corporation; and
(c) In each case described in paragraphs (b)(1) through (4) of this section, such designee must possess actual authority to make the certification on behalf of the party filing a notice, declaration, or information.
Note 1 to §802.202: A sample certification may be found at the Committee's section of the Department of the Treasury website. See §§802.402(f) and 802.502(k) regarding filing procedures for transactions in which a U.S. public entity is a party to the transaction.
The term close proximity means, with respect to a military installation or another facility or property of the U.S. Government identified in this part, the area that extends outward one mile from the boundary of such military installation, facility, or property.
The term completion date means, with respect to a transaction, the earliest date upon which the purchase, lease, or concession is made legally effective, or a change in rights that could result in a covered real estate transaction occurs.
Note 1 to §802.205: See §802.304 regarding the timing rule for a contingent equity interest.
The term concession means an arrangement, other than a purchase or lease, whereby a U.S. public entity grants a right to use real estate for the purpose of developing or operating infrastructure for a covered port. This term includes the assignment of a concession, in whole or in part, by the party who is not the U.S. public entity.
The term contingent equity interest means a financial instrument that currently does not constitute an equity interest but is convertible into, or provides the right to acquire, an equity interest upon the occurrence of a contingency or defined event.
(4) The right to purchase an additional interest in an entity to prevent the dilution of an investor's pro rata interest in that entity in the event that the entity issues additional instruments conveying interests in the entity;
Note 1 to §802.208: This definition is included herein for the purpose of determining whether a foreign person may be involved in a covered real estate transaction. For additional information, see the examples provided at §800.208, as relevant.
The term conversion means the exercise of a right inherent in the ownership or holding of a particular financial instrument to exchange any such instrument for an equity interest.
(a) The term covered port means, subject to paragraph (b) of this section, any port that is listed:
(1) In the Department of Transportation, Federal Aviation Administration's annual final enplanement data as a “large hub airport,” as that term is defined in 49 U.S.C. 40102;
(2) In the Department of Transportation, Federal Aviation Administration's annual final all-cargo landed weight data as an airport with annual aggregate all-cargo landed weight greater than 1.24 billion pounds;
(3) By the Department of Transportation, Federal Aviation Administration as a “joint use airport,” as that term is defined in 49 U.S.C. 47175;
(4) By the Department of Transportation, Maritime Administration as a commercial strategic seaport within the National Port Readiness Network; or
(5) By the Department of Transportation, Bureau of Transportation Statistics as a top 25 tonnage, container, or dry bulk port.
(b) For purposes of determining whether a port constitutes a covered port under paragraph (a) of this section,
(1) Any port that is added after February 13, 2020 to any of the lists described in paragraph (a) of this section shall be deemed not to be in effect as a covered port until 30 days after the port's addition to the relevant list maintained by the Department of Transportation; and
(2) In the context of a particular transaction, the covered ports in effect on the day immediately prior to, the earlier of, the date on which the parties sign a written document establishing the material terms of the transaction, or the completion date of the transaction, shall apply.
Note 1 to §802.210: The lists described in paragraph (a) of this section are published on the Department of Transportation website.
The term covered real estate means real estate that:
(a) Is, is located within, or will function as part of, a covered port; or
(1) Close proximity of any military installation described in §802.227(b) to (o), or another facility or property of the U.S. Government, in each case as identified in the list at part 1 or part 2 of appendix A to this part;
(2) The extended range of any military installation described in §802.227(h), (k), or (m), as identified in the list at part 2 of appendix A to this part;
(3) Any county or other geographic area identified in connection with any military installation described in §802.227(a), as identified in the list at part 3 of appendix A to this part; or
(4) Any part of a military installation described in §802.227(p), as identified at part 4 of appendix A to this part, to the extent located within the limits of the territorial sea of the United States.
The term covered real estate transaction means:
(a) Other than an excepted real estate transaction, any purchase or lease by, or concession to, a foreign person of covered real estate, that affords the foreign person at least three of the property rights under §802.233;
(b) Other than an excepted real estate transaction, any purchase or lease by, or concession to, a foreign person of covered real estate, that, through a subsequent change in the rights that a foreign person has with respect to that covered real estate, results in the foreign person having at least three of the property rights under §802.233; or
(c) Any other transaction, transfer, agreement, or arrangement, the structure of which is designed or intended to evade or circumvent the application of section 721 as it relates to real estate transactions.
Note 1 to §802.212: Any transaction, transfer, agreement, or arrangement described in this section that arises pursuant to a bankruptcy proceeding or other form of default on debt is a covered real estate transaction. See also §802.303 for the treatment of certain lending transactions.
The term entity means any branch, partnership, group or sub-group, association, estate, trust, corporation or division of a corporation, or organization (whether or not organized under the laws of any State or foreign state); assets (whether or not organized as a separate legal entity) operated by any one of the foregoing as a business undertaking in a particular location or for particular products or services; and any government (including a foreign national or subnational government, the U.S. Government, a subnational government within the United States, and any of their respective departments, agencies, or instrumentalities).
The term excepted real estate foreign state means, until February 13, 2022, a foreign state that meets the criteria in paragraph (a) of this section, and beginning on February 13, 2022, a foreign state that meets both the criteria in paragraphs (a) and (b) of this section:
(a) Is identified by the Committee as an eligible foreign state and
(b) Is a foreign state for which the Committee has made a determination under §802.1001(a).
Note 1 to §802.214: The name of each foreign state identified by the Committee as an eligible foreign state will be available at the Committee's section of the Department of the Treasury website. See §802.1001(c) regarding the publication of a notice in the Federal Register of a determination under §802.1001(a). The list of excepted real estate foreign states will also be available at the Committee's section of the Department of the Treasury website.
(a) The term excepted real estate investor means a foreign person who is, as of the completion date of the transaction and subject to paragraphs (c) and (d) of this section:
(1) A foreign national who is a national of one or more excepted real estate foreign states and is not also a national of any foreign state that is not an excepted real estate foreign state;
(2) A foreign government of an excepted real estate foreign state; or
(3) An entity that meets each of the following conditions with respect to itself and each of its parents (if any):
(i) Such entity is organized under the laws of an excepted real estate foreign state or in the United States;
(ii) Such entity has its principal place of business in an excepted real estate foreign state or in the United States;
(iii) Seventy-five percent or more of the members and 75 percent or more of the observers of the board of directors or equivalent governing body of such entity are:
(A) U.S. nationals; or
(B) Nationals of one or more excepted real estate foreign states who are not also nationals of any foreign state that is not an excepted real estate foreign state;
(iv) Any foreign person that individually, and each foreign person that is part of a group of foreign persons that in the aggregate, holds 10 percent or more of the outstanding voting interest of such entity; holds the right to 10 percent or more of the profits of such entity; holds the right in the event of dissolution to 10 percent or more of the assets of such entity; or otherwise could exercise control over such entity, is:
(A) A foreign national who is a national of one or more excepted real estate foreign states and is not also a national of any foreign state that is not an excepted real estate foreign state;
(B) A foreign government of an excepted real estate foreign state; or
(C) An entity that is organized under the laws of an excepted real estate foreign state or in the United States and has its principal place of business in an excepted real estate foreign state or in the United States; and
(v) The minimum excepted ownership of such entity is held, individually or in the aggregate, by one or more persons each of whom is:
(A) Not a foreign person;
(B) A foreign national who is a national of one or more excepted real estate foreign states and is not also a national of any foreign state that is not an excepted real estate foreign state;
(C) A foreign government of an excepted real estate foreign state; or
(D) An entity that is organized under the laws of an excepted real estate foreign state or in the United States and has its principal place of business in an excepted real estate foreign state or in the United States.
(b) For purposes of paragraph (a)(3)(iv) of this section, foreign persons who are related, have formal or informal arrangements to act in concert, or are agencies or instrumentalities of, or controlled by, the national or subnational governments of a single foreign state are considered part of a group of foreign persons and their individual ownerships are aggregated.
(c) Notwithstanding paragraph (a) of this section, a foreign person is not an excepted real estate investor with respect to a transaction if:
(1) In the five years prior to the completion date of the transaction the foreign person, any of its parents, or any entity of which it is a parent:
(i) Has received written notice from the Committee that it has submitted a material misstatement or omission in a notice or declaration or made a false certification under this part or part 800 or 801 of this chapter;
(ii) Has received written notice from the Committee that it has violated a material provision of a mitigation agreement entered into with, material condition imposed by, or an order issued by, the Committee or a lead agency under section 721(l);
(iii) Has been subject to action by the President under section 721(d);
(A) Received a written Finding of Violation or Penalty Notice imposing a civil monetary penalty from the Department of the Treasury, Office of Foreign Assets Control (OFAC); or
(B) Entered into a settlement agreement with OFAC with respect to apparent violations of U.S. sanctions laws administered by OFAC, including the International Emergency Economic Powers Act, the Trading With the Enemy Act, the Foreign Narcotics Kingpin Designation Act, each as amended, or of any executive order, regulation, order, directive, or license issued pursuant thereto;
(v) Has received a written notice of debarment from the Department of State, Directorate of Defense Trade Controls, as described in 22 CFR parts 127 and 128;
(vi) Has been a respondent or party in a final order, including a settlement order, issued by the Department of Commerce, Bureau of Industry and Security (BIS) regarding violations of U.S. export control laws administered by BIS, including the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.), the Export Administration Regulations (15 CFR parts 730-774), or of any executive order, regulation, order, directive, or license issued pursuant thereto;
(vii) Has received a final decision from the Department of Energy, National Nuclear Security Administration imposing a civil penalty with respect to a violation of section 57 b. of the Atomic Energy Act of 1954, as implemented under 10 CFR part 810; or
(viii) Has been convicted of, or has entered into a deferred prosecution agreement or non-prosecution agreement with the Department of Justice with respect to, any felony in any jurisdiction within the United States; or
(2) The foreign person, any of its parents, or any entity of which it is a parent is, on the date on which the parties to the transaction first execute a binding written agreement, or other binding document, establishing the material terms of the transaction, listed on either the BIS Unverified List or Entity List in 15 CFR part 744.
(d) Irrespective of whether the foreign person satisfies the criteria in paragraph (a)(1) or (2), (a)(3)(i) through (iii), or (c)(1)(i) through (iii) of this section as of the completion date, if at any time during the three-year period following the completion date the foreign person no longer meets all the criteria set forth in paragraph (a)(1) or (2), (a)(3)(i) through (iii), or (c)(1)(i) through (iii) of this section, the foreign person is not an excepted real estate investor with respect to the transaction from the completion date onward. This paragraph does not apply when an excepted real estate investor no longer meets any of the criteria solely due to a rescission of a determination under §802.1001(b) or if the relevant foreign state otherwise ceases to be an excepted real estate foreign state.
(e) A foreign person may waive its status as an excepted real estate investor with respect to a transaction at any time by submitting a declaration under §802.401 or filing a notice under §802.501 regarding the transaction in which it explicitly waives such status. In such case, the foreign person will be deemed not to be an excepted real estate investor with respect to the transaction, and the relevant provisions of subpart D or E will apply.
Note 1 to §802.215: See §802.501(c)(2) regarding an agency notice where a foreign person is not an excepted real estate investor solely due to paragraph (d) of this section.
[85 FR 3166, Jan. 17, 2020; 85 FR 8746, Feb. 18, 2020]
The term excepted real estate transaction means the following:
(a) A purchase or lease by, or concession to, an excepted real estate investor of covered real estate, or a change in rights of an excepted real estate investor with respect to covered real estate.
(b) A covered transaction as defined in part 800 of this chapter that includes the purchase, lease, or concession of covered real estate.
(c) The purchase, lease, or concession of covered real estate that is within an urbanized area or urban cluster, except for real estate that is subject to paragraph (a) or (b)(1) of §802.211.
(d) The purchase, lease, or concession of covered real estate that is a single housing unit, including fixtures and adjacent land to the extent that such fixtures and land are incidental to the use of the real estate as a single housing unit.
(e) The lease by or a concession to a foreign person of covered real estate under paragraph (a) of §802.211 if:
(1) The foreign person is a foreign air carrier, as that term is defined in 49 U.S.C. 40102(a)(21), for whom the Department of Homeland Security, Transportation Security Administration has accepted a security program under 49 CFR 1546.105, but only to the extent that the lease or concession is in furtherance of its activities as a foreign air carrier; or
(2) According to the terms of the lease or concession, the covered real estate may be used only for the purpose of engaging in the retail sale of consumer goods or services to the public.
(f) The purchase or lease by, or concession to, a foreign person of commercial space in a multi-unit building that is covered real estate, if, upon the completion of the transaction:
(1) The foreign person and its affiliates do not, in the aggregate, hold, lease, or have a concession with respect to commercial space in such building that exceeds 10 percent of the total square footage of the commercial space of such building; and
(2) The foreign person and its affiliates (each counted separately) do not represent more than 10 percent of the total number of tenants based on the number of ownership, lease and concession arrangements for commercial space in the building.
(g) The purchase or lease by, or a concession to, a foreign person of covered real estate either:
(1) Owned by an Alaska “Native village,” “Native group,” or “Native Corporation” as those terms are defined in the Alaska Native Claims Settlement Act at 43 U.S.C. 1602; or
(2) Held in trust by the United States for American Indians, Indian tribes, Alaska Natives, or any of the entities set forth in paragraph (g)(1) of this section.
(1) Example 1. Corporation A, a foreign person, proposes to purchase all of the shares of Corporation X, a U.S. business. Corporation X is in the business of owning and leasing real estate, including real estate properties that are in close proximity to military installations identified in part 1 and part 2 of appendix A to this part. As the sole owner of Corporation X, Corporation A will have control over Corporation X. The proposed transaction is not a covered real estate transaction but is a covered transaction under part 800 of this chapter.
(2) Example 2. Same facts as the example in paragraph (h)(1) of this section. After the transaction contemplated in Example 1 of this section is completed, Corporation X leases from another person a tract of land that is in close proximity to a military installation identified in part 1 of appendix A to this part. Assuming no other relevant facts, the proposed transaction is a covered real estate transaction but only with respect to the new lease.
(3) Example 3. Corporation A, a foreign person, seeks to purchase from Corporation X an empty warehouse located in close proximity to a military installation identified in part 2 of appendix A to this part. Assuming no other relevant facts, the purchase of the covered real estate is not a covered transaction subject to part 800 of this chapter because Corporation A has not acquired a U.S. business, and the purchase is a covered real estate transaction.
(4) Example 4. Same facts as the example in paragraph (h)(3) of this section, except that, in addition to the proposed purchase of Corporation X's empty warehouse, Corporation A would also acquire from Corporation X the personnel, customer list, equipment, and inventory management software used to operate the warehouse. Under these facts, Corporation A is acquiring a U.S. business, and the proposed transaction is a covered transaction subject to part 800 of this chapter and therefore not a covered real estate transaction.
(5) Example 5. Corporation A, a foreign person, purchases covered real estate that is undeveloped and in close proximity to a military installation identified in part 1 of appendix A to this part. Corporation A, through a newly incorporated U.S. subsidiary, intends to use the covered real estate to set up a manufacturing facility. Assuming no other relevant facts, Corporation A has not acquired a U.S. business, the purchase of the covered real estate is not a covered transaction subject to part 800 of this chapter, and Corporation A's purchase of the covered real estate is a covered real estate transaction.
(6) Example 6. A foreign person purchases real estate. The nearest military installation is one that is identified in part 2 of appendix A to this part and is 40 miles away (i.e., in the extended range) from the real estate. The real estate is located in a statistical geographic area with a population of 125,000 individuals. Assuming no other relevant facts, the transaction is not a covered real estate transaction because the covered real estate is located in an urbanized area.
(7) Example 7. Same facts as the example in paragraph (h)(6) of this section, except that the covered real estate is not located in an urbanized area or an urban cluster. Assuming no other relevant facts, the real estate transaction is a covered real estate transaction.
(8) Example 8. A foreign person purchases real estate that is 0.25 miles from a military installation identified in part 1 of appendix A to this part. The real estate is located in an urbanized area. Assuming no other relevant facts, the real estate transaction is a covered real estate transaction because it is in close proximity to a military installation listed in part 1 of appendix A to this part.
(9) Example 9. A foreign person purchases a single housing unit, including the one acre of land surrounding it, within 0.5 miles from a military installation identified in part 1 of appendix A to this part. Each home in the neighborhood sits on a separate lot, each of which is approximately one acre in size. The acre of land surrounding the housing unit is incidental to use of the land as a single housing unit, and the real estate transaction therefore is not a covered real estate transaction.
(10) Example 10. Same facts as the example in paragraph (h)(9) of this section, except that the foreign person also purchases an adjacent five acres of undeveloped land a year later. Assuming no other relevant facts, the purchase of the adjacent land is a covered real estate transaction.
(11) Example 11. A foreign person leases five percent of the total commercial space in a building located 0.5 miles from a military installation identified in part 1 of appendix A to this part. There are nine other tenants that have leases for commercial space with the building owner. Assuming no other relevant facts, the transaction is a not a covered real estate transaction.
Note 1 to §802.216: With respect to paragraph (d) of this section, for purposes herein, fixtures and land may be considered incidental if the size and nature of such is common for similar single housing units in the locality in which the unit is located.
The term extended range means, with respect to any military installation identified in §802.227(h), (k), or (m), as listed in part 2 of appendix A to this part, the area that extends 99 miles outward from the outer boundary of close proximity to such military installation, but, where applicable, not exceeding the outer limit of the territorial sea of the United States.
(b) Notwithstanding paragraph (a) of this section, any branch, partnership, group or sub-group, association, estate, trust, corporation or division of a corporation, or organization that can demonstrate that a majority of the equity interest in such entity is ultimately owned by U.S. nationals is not a foreign entity.
The term foreign government means any government or body exercising governmental functions, other than the U.S. Government or a subnational government of the United States. The term includes, but is not limited to, national and subnational governments, including their respective departments, agencies, and instrumentalities.
(a) The term foreign person means:
(1) Any foreign national, foreign government, or foreign entity; or
(2) Any entity over which control is exercised or exercisable by a foreign national, foreign government, or foreign entity.
(b) Any entity over which control is exercised or exercisable by a foreign person is a foreign person.
(1) Example 1. Corporation A is organized under the laws of a foreign state and is engaged in business only outside the United States. All of its shares are held by Corporation X, which solely controls Corporation A. Corporation X is organized in the United States and is wholly owned and controlled by U.S. nationals. Assuming no other relevant facts, Corporation A, although organized and operating only outside the United States, is not a foreign entity due to §802.218(b) and is not a foreign person.
(2) Example 2. Same facts as the first sentence of the example in paragraph (c)(1) of this section. The government of the foreign state under whose laws Corporation A is organized exercises control over Corporation A because a law establishing Corporation A gives the foreign state the right to appoint Corporation A's board members. Corporation A is a foreign person.
(3) Example 3. Corporation A is organized in the United States, is engaged in interstate commerce in the United States, and is controlled by Corporation X. Corporation X is organized under the laws of a foreign state, its principal place of business is located outside the United States, and 50 percent of its shares are held by foreign nationals and 50 percent of its shares are held by U.S. nationals. Both Corporation A and Corporation X are foreign persons. Corporation A is also a U.S. business.
(4) Example 4. Corporation A is organized under the laws of a foreign state and is owned and controlled by a foreign national. A branch of Corporation A engages in interstate commerce in the United States. Corporation A (including its branch) is a foreign person. The branch is also a U.S. business.
(5) Example 5. Corporation A is organized under the laws of a foreign state and its principal place of business is located outside the United States. Forty-five percent of the equity interest in Corporation A is owned in equal shares by numerous unrelated foreign investors, none of whom has control. The foreign investors have no formal or informal arrangement with any other holder of equity interest in Corporation A to act in concert regarding Corporation A. Corporation A can demonstrate that the remainder of the equity interest in Corporation A is ultimately held by U.S. nationals. Assuming no other relevant facts, Corporation A is not a foreign entity or foreign person.
(6) Example 6. Same facts as the example in paragraph (c)(5) of this section, except that one of the foreign investors, a foreign national, controls Corporation A. Assuming no other relevant facts, Corporation A is not a foreign entity due to §802.218(b), but it is a foreign person under paragraph (a)(2) of this section because it is controlled by a foreign national.
The term housing unit means a single family house, townhome, mobile home or trailer, apartment, group of rooms, or single room that is occupied as a separate living quarters, or, if vacant, is intended for occupancy as a separate living quarters.
The term lead agency means the Department of the Treasury and any other agency designated by the Chairperson of the Committee to have primary responsibility, on behalf of the Committee, for the specific activity for which the Chairperson designates it as a lead agency, including all or a portion of an assessment, a review, an investigation, or the negotiation or monitoring of a mitigation agreement or condition.
(a) The term lease means an arrangement conveying a possessory interest in real estate, short of ownership, to a person for a specified time and in exchange for consideration. This term includes subleases and assignments in whole or part.
(1) Example 1. Foreign person A enters into an arrangement with a neighbor that allows the foreign person to use a private road running across the neighbor's land. The road will remain owned by the neighbor following the arrangement. The neighbor will also retain physical possession of his land despite the foreign person having permission to traverse the land while using the road. The arrangement does not convey a possessory interest in real estate. Assuming no other relevant facts, the foreign person has not entered into a lease.
(2) Example 2. Same facts as the example in paragraph (b)(1) of this section, except that the foreign person's arrangement with the neighbor gives the foreign person the exclusive right to occupy a portion of the neighbor's land and attach fixtures to the surface, in exchange for a fee for a specified period of time. The foreign person can unilaterally adjust, remove, and make other changes to the fixtures. The foreign person has entered into a lease.
Note 1 to §802.226: See §800.249(a)(5) for certain long-term leases and concessions that could be subject to part 800 of this chapter.
The term military installation means any site that meets the following category descriptions, as identified in the list at appendix A to this part:
(a) Active Air Force ballistic missile fields;
(b) Air Force bases administering active Air Force ballistic missile fields;
(c) Air Force bases and major annexes thereof containing a unit from the Air Force Air Combat Command;
(d) Air Force bases and major annexes thereof containing an Air Force research laboratory or test unit and associated sites;
(e) Air Force bases and major annexes thereof containing a unit of the North American Aerospace Defense Command and its regions;
(f) Air Force bases and Air Force stations and major annexes thereof containing satellite, telemetry, tracking, or commanding systems;
(g) Army bases, ammunition plants, centers of excellence and research laboratories and major annexes thereof, excluding depots, arsenals, and airfields that are not collocated with an Army installation included in this section;
(h) Army combat training centers located in the continental United States;
(i) Headquarters of the Office of the Secretary of Defense and Defense Advanced Research Projects Agency and major offices and annexes thereof;
(j) Long range radar sites and major annexes thereof in any of the following states: Alaska, North Dakota, California, or Massachusetts;
(k) Major range and test facility base activities as defined in 10 U.S.C. 196;
(l) Marine Corps bases and air stations and major annexes thereof, excluding detachments, installations, logistics battalions, recruit depots, and support facilities;
(m) Military ranges as defined in 10 U.S.C. 101(e)(1) owned by the Navy or Air Force, or joint forces training centers that are located in any of the following states: Oregon, Nevada, Idaho, Wisconsin, Mississippi, North Carolina, or Florida;
(n) Naval bases and air stations containing squadrons and supporting commands of the Submarine Force Atlantic or Submarine Force Pacific and major offices thereof;
(o) Naval surface, air, and undersea warfare centers and research laboratories and major annexes thereof; and
(p) Navy off-shore range complexes and off-shore operating areas.
(a) With respect to an entity whose equity securities are primarily traded on an exchange in an excepted real estate foreign state or the United States, a majority of its voting interest, the right to a majority of its profits, and the right in the event of dissolution to a majority of its assets; and
(b) With respect to an entity whose equity securities are not primarily traded on an exchange in an excepted real estate foreign state or the United States, 80 percent or more of its voting interest, the right to 80 percent or more of its profits, and the right in the event of dissolution to 80 percent or more of its assets.
(a) The term parent means, with respect to an entity:
(1) A person who or which directly or indirectly:
(i) Holds or will hold at least 50 percent of the outstanding voting interest in the entity; or
(ii) Holds or will hold the right to at least 50 percent of the profits of the entity, or has or will have the right in the event of dissolution to at least 50 percent of the assets of the entity; or
(2) The general partner, managing member, or equivalent of the entity.
(b) Any entity that meets the conditions of paragraph (a)(1) or (2) of this section with respect to another entity (i.e., the intermediate parent) is also a parent of any other entity of which the intermediate parent is a parent.
(1) Example 1. Corporation P holds 50 percent of the voting interest in Corporations R and S; Corporation R holds 40 percent of the voting interest in Corporation X; and Corporation S holds 50 percent of the voting interest in Corporation Y, which in turn holds 50 percent of the voting interest in Corporation Z. Corporation P is a parent of Corporations R, S, Y, and Z, but not of Corporation X. Corporation S is a parent of Corporation Y and Z, and Corporation Y is a parent of Corporation Z.
(2) Example 2. Corporation A holds warrants which when exercised will entitle it to vote 50 percent of the outstanding shares of Corporation B. Corporation A is a parent of Corporation B.
(3) Example 3. Investor A holds 60 percent of the outstanding voting interest in Corporation B. Investor C holds the right to 80 percent of the profits of Corporation B. Each of Investor A and Investor C is a parent of Corporation B.
(a) The term party to a transaction means:
(1) In the case of a purchase, the person acquiring the ownership interest, the person from whom such ownership interest is acquired, and the entity whose ownership interest is being acquired, without regard to any person providing brokerage or underwriting services for the transaction;
(2) In the case of a lease, the person acquiring the possessory interest, and the person from whom such possessory interest is acquired;
(3) In the case of a concession, the person receiving the right to use the covered real estate, and the U.S. public entity;
(4) In the case of a change in rights that a person has with respect to covered real estate as a result of a purchase, lease, or concession, the person whose rights change as a result of the transaction, and the person conveying those rights; and
(5) In the case of any other transaction, transfer, agreement, or arrangement, the structure of which is designed or intended to evade or circumvent the application of section 721, any person that participates in such transaction, transfer, agreement, or arrangement.
(6) In all cases, each party that submitted a declaration or notice to the Committee regarding a transaction.
(b) For purposes of section 721(l), the term party to a transaction includes any affiliate of any party described in paragraph (a) of this section that the Committee, or a lead agency acting on behalf of the Committee, determines is relevant to mitigating a risk to the national security of the United States.
(a) The term principal place of business means, subject to paragraph (b) of this section, the primary location where an entity's management directs, controls, or coordinates the entity's activities, or, in the case of an investment fund, where the fund's activities and investments are primarily directed, controlled, or coordinated by or on behalf of the general partner, managing member, or equivalent.
(b) If the location determined under paragraph (a) of this section is in the United States and the entity has represented to the U.S. Government or a subnational government of the United States or any foreign government, in the most recent submission or filing to such government (other than a submission or filing to the Committee) in which the entity has identified its principal place of business, principal office and place of business, address of principal executive offices, address of headquarters, or equivalent, that any of the foregoing is outside the United States, then the location identified in such submission or filing is deemed for purposes of this definition to be the entity's principal place of business unless the entity can demonstrate that such location has changed to the United States since such submission or filing.
(a) The term property right means, with respect to real estate, any of the following rights or abilities, whether or not exercised, whether or not shared concurrently with any other person, and whether or not the underlying real estate is subject to an easement or other encumbrance:
(1) To physically access the real estate;
(2) To exclude others from physically accessing the real estate;
(3) To improve or develop the real estate; or
(4) To attach fixed or immovable structures or objects to the real estate.
(1) Example 1. Corporation A, a foreign person, enters into a lease of real estate. Although at least one other person shares concurrently with Corporation A the right to access the property, Corporation A retains the right to physically exclude others from access that would interfere with its rights under the lease. Under the lease, Corporation A has the right to exclude others from physically accessing the real estate, and therefore affords the foreign person a property right.
(2) Example 2. Corporation A, a foreign person, enters into a lease of real estate that allows Corporation A to develop the real estate. The exercise of the right to develop the real estate is subject to Corporation A obtaining the appropriate regulatory permits. Notwithstanding the fact that Corporation A has not fully exercised its lease right pending the issuance of the permits, Corporation A is a party to lease that affords it a property right for purposes of this part.
(a) The term purchase means an arrangement conveying an ownership interest in real estate to a person in exchange for consideration.
(b) Example: Person A, a foreign person, acquires covered real estate from Person B, a U.S. national, in exchange for land and services. Person A has purchased the covered real estate because the arrangement was predicated on consideration in the form of land and services.
The term real estate means any land, including subsurface and submerged, or structure attached to land, including any building or any part thereof, that is located in the United States.
The term section 721 means section 721 of title VII of the Defense Production Act of 1950, as amended (50 U.S.C. 4565).
The term transaction means any purchase or lease by, or concession to, a person of real estate, whether proposed or completed.
The term United States or U.S. means the United States of America, the States of the United States, the District of Columbia, and any commonwealth, territory, dependency, or possession of the United States, or any subdivision of the foregoing, and includes the territorial sea of the United States. For purposes of these regulations and their examples in this part, an entity organized under the laws of the United States of America, one of the States, the District of Columbia, or a commonwealth, territory, dependency, or possession of the United States is an entity organized “in the United States.”
The term urban cluster means a statistical geographic area as identified in the most recent U.S. Census consisting of a densely settled core created from census tracts or blocks and contiguous qualifying territory that together have at least 2,500 individuals but fewer than 50,000 individuals.
The term urbanized area means a statistical geographic area as identified in the most recent U.S. Census consisting of a densely settled core created from census tracts or blocks and contiguous qualifying territory that together have a minimum population of at least 50,000 individuals.
The term U.S. business means any entity, irrespective of the nationality of the persons that control it, engaged in interstate commerce in the United States.
Note 1 to §802.241: See examples to definition in §800.252.
The term U.S. national means an individual who is a U.S. citizen or an individual who, although not a U.S. citizen, owes permanent allegiance to the United States.
The term U.S. public entity means the U.S. Government, a subnational government of the United States, or any other body exercising governmental functions of the United States, including air and maritime port authorities. The term includes, but is not limited to, the respective departments, agencies, and instrumentalities of the U.S. Government and the subnational governments of the United States.
Transactions that are covered real estate transactions include:
(a) A transaction that meets the criteria of §802.212, including where a foreign person (other than an excepted real estate investor) enters into a purchase or lease of, or obtains a concession to, covered real estate either directly or indirectly. (See the examples in paragraphs (h)(1) and (2) of this section.)
(b) A purchase by a foreign person (other than an excepted real estate investor) of less than full ownership of covered real estate that nevertheless affords the foreign person at least three property rights with respect to the covered real estate. (See the example in paragraph (h)(3) of this section.)
(c) A purchase or lease by, or concession to, a foreign person (other than an excepted real estate investor) of real estate, a portion of which is covered real estate with respect to which the foreign person has at least three property rights. (See the example in paragraph (h)(4) of this section.)
(d) A purchase or lease by, or concession to, a foreign person (other than an excepted real estate investor) of a portion of covered real estate with respect to which the foreign person has at least three property rights. (See the example in paragraph (h)(5) of this section.)
(e) A purchase, lease, or assignment of a concession, of covered real estate that meets the criteria of §802.212 by one foreign person (other than an excepted real estate investor) from another foreign person. (See the example in paragraph (h)(6) of this section.)
(f) A purchase or lease by, or concession to, a foreign person (other than an excepted real estate investor) of covered real estate, that, through a subsequent change in the rights that a foreign person has with respect to covered real estate, results in the foreign person having at least three property rights. (See the example in paragraph (h)(7) of this section.)
(g) A transaction the structure of which is designed or intended to evade or circumvent the application of this part.
(1) Example 1. Corporation A, a foreign person, acquires Corporation X, a U.S. business. As a result, Corporation X is a foreign person. Subsequently, Corporation X purchases real estate that is in close proximity to a military installation identified in part 1 of appendix A to this part and obtains all of the property rights with respect to such real estate. Assuming no other relevant facts, the transaction is a covered real estate transaction.
(2) Example 2. Corporation A purchases covered real estate that is undeveloped land. Corporation A's only asset in the United States is the covered real estate, and Corporation A is not itself nor does it own a U.S. business. In a subsequent transaction, Corporation B, a foreign person, purchases 100 percent of the shares of Corporation A. Assuming no other relevant facts, the subsequent transaction as an indirect purchase of real estate is a covered real estate transaction.
(3) Example 3. Corporation A, a foreign person, together with Corporation B, a U.S. business, purchases real estate that is in close proximity to a military installation identified in part 2 of appendix A to this part. Neither party has full ownership; rather, the title to the real estate is held by the two parties jointly. Corporation A is afforded at least three property rights as a result of the transaction. Assuming no other relevant facts, the transaction is a covered real estate transaction.
(4) Example 4. Corporation A, a foreign person, purchases real estate. Half of such real estate is located in close proximity to a military installation identified in part 1 of appendix A to this part of and is therefore covered real estate. The other half of the real estate purchased by Corporation A is not located in close proximity to any such military installation. Assuming no other relevant facts, Corporation A's purchase is a covered real estate transaction.
(5) Example 5. Corporation A, a U.S. business, purchases covered real estate that is entirely located in close proximity to a military installation identified in part 2 of appendix A to this part. Corporation B, a foreign person, leases from Corporation A a part of that real estate. Corporation B is entitled to at least three property rights with respect to the real estate as a result of the transaction. Assuming no other relevant facts, Corporation B's lease is a covered real estate transaction.
(6) Example 6. Corporation A, a foreign person, purchases covered real estate and is afforded three property rights with respect to the covered real estate. In a subsequent transaction, Corporation B, another foreign person, leases the covered real estate from Corporation A, and is also afforded three property rights. Assuming no other relevant facts, each transaction is a covered real estate transaction.
(7) Example 7. Corporation A, a foreign person, leases from Person B covered real estate, and is afforded two property rights. Person B subsequently provides Corporation A an additional property right in connection with the lease. Assuming no other relevant facts, the lease is a covered real estate transaction because the subsequent change in rights results in the foreign person having at least three property rights.
Transactions that are not covered real estate transactions include:
(a) A transaction that meets the definition of excepted real estate transaction in §802.216.
(b) A purchase or lease by, or concession to, a foreign person of covered real estate, or a subsequent change in rights, that does not afford or result in the foreign person having at least three of the property rights with respect to the covered real estate.
(c) An acquisition of securities by a person acting as a securities underwriter, in the ordinary course of business and in the process of underwriting.
(d) An acquisition pursuant to a condition in a contract of insurance relating to fidelity, surety, or casualty obligations if the contract was made by an insurer in the ordinary course of business.
(a) The extension of a mortgage, loan, or similar financing arrangement by a foreign person to another person for the purpose of the purchase, lease, or concession of covered real estate, regardless of whether accompanied by the creation in favor of the foreign person of a secured interest in the covered real estate, shall not, by itself, constitute a covered real estate transaction.
(1) The Committee will accept notices or declarations concerning a mortgage, loan, or similar financing arrangement that does not, by itself, constitute a covered real estate transaction only at the time that, because of imminent or actual default or other condition, there is a significant possibility that a purchase or lease by, concession to, or a change in rights involving a foreign person may result from the default or other condition and that would constitute a covered real estate transaction.
(2) Where the Committee accepts a notice or declaration concerning a mortgage, loan, or similar financing arrangement under paragraph (a)(1) of this section, and a party to the transaction is a foreign person that makes mortgages or loans in the ordinary course of business, the Committee will take into account whether the foreign person has made any arrangements to transfer the ownership and property rights over the covered real estate to U.S. nationals or excepted real estate investors for purposes of determining whether such mortgage, loan, or financing arrangement constitutes a covered real estate transaction.
(b) Notwithstanding paragraph (a) of this section, a mortgage, loan, or similar financing arrangement through which a foreign person acquires property rights over covered real estate may constitute a covered real estate transaction to the extent that the arrangement would constitute a purchase, lease, or concession under this part.
(c) Example: Corporation A, a foreign bank, makes a secured loan to Corporation B in order for Corporation B to purchase a building that constitutes covered real estate. The collateral for the loan is the building that Corporation B is purchasing, and upon default, Corporation A would obtain an ownership interest and be afforded at least three property rights with respect to the building. Corporation B defaults on the loan. Assuming no other relevant facts, the Committee would accept a notice or declaration of the imminent default or default transferring ownership of the building to Corporation A, which would constitute a covered real estate transaction.
(a) For purposes of determining whether to include the rights that a holder of a contingent equity interest will acquire upon conversion of, or exercise of a right provided by, that interest in the Committee's analysis of whether a notified transaction is a covered real estate transaction, the Committee will consider factors that include:
(b) When the Committee, applying paragraph (a) of this section, determines that the rights that the holder will acquire upon conversion or satisfaction of contingent condition will not be included in the Committee's analysis of whether a notified or submitted transaction is a covered real estate transaction, the Committee will disregard the contingent equity interest for purposes of that transaction except to the extent that they convey immediate rights to the holder with respect to the entity that issued the interest.
(a) A party or parties may submit a voluntary declaration of a transaction by submitting electronically the information set out in §802.402, including the certifications required thereunder, to the Staff Chairperson in accordance with the submission instructions on the Committee's section of the Department of the Treasury website.
(c) Information and other documentary material submitted to the Committee under this section shall be considered to have been filed with the President or the President's designee for purposes of section 721(c) and §802.802.
(d) Persons filing a declaration shall, during the time that the matter is pending before the Committee, promptly advise the Staff Chairperson of any material changes in plans, facts, or circumstances regarding the transaction, and any material change in information provided or required to be provided to the Committee under §802.402. Unless the Committee rejects the declaration on the basis of such material changes in accordance with §802.404(a)(2)(i), such changes shall become part of the declaration filed by such persons under this section, and the certification required under §802.403(d) shall apply to such changes.
(e) Parties to a transaction that have filed with the Committee a written notice regarding a transaction under §802.501 or §800.501 or a declaration under §800.403 may not submit to the Committee a declaration regarding the same transaction or a substantially similar transaction without the written approval of the Staff Chairperson.
(a) The party or parties submitting a voluntary declaration of a transaction under §802.401 shall provide the information set out in this section, which must be accurate and complete with respect to the party or parties filing the voluntary declaration and to the transaction. (See also paragraphs (d), (e), and (f) of this section.)
(b) Other than as provided under paragraph (f) of this section, if fewer than all the parties to a transaction submit a declaration, the Committee may, at its discretion, request that the parties to the transaction file a written notice of the transaction under §802.501, if the Staff Chairperson determines that the information provided by the submitting party or parties in the declaration is insufficient for the Committee to assess the transaction.
(c) Subject to paragraph (e) of this section, a declaration submitted under §802.401 shall describe or provide, as applicable:
(1) The name of the foreign person(s) and the current holder(s) of interest in the real estate that are parties to, or, in applicable cases, the subject of the transaction, as well as the name, telephone number, and email address of the primary point of contact for each party.
(2) The following information regarding the transaction in question:
(i) A brief description of the rationale for and nature of the transaction, including its structure (e.g., purchase, lease, or concession) and term, whether the foreign person is acquiring a collection of assets or interest in an entity, and whether it is part of a larger project undertaken by the foreign person;
(ii) The total transaction value in U.S. dollars;
(iii) The status of the transaction, including the actual or expected completion date of the transaction;
(iv) All sources of financing for the transaction and any real estate agents/brokers involved; and
(v) A copy of the definitive documentation of the transaction, such as a purchase, lease, or concession agreement, or if none exists, the document establishing the material terms of the transaction, which in the context of a transaction involving a covered port, must be signed and dated.
(3) The following information regarding the real estate that is the subject of the transaction:
(i) The location, by address and geographic coordinates in decimal degrees to the fourth digit, of the real estate that is the subject of the transaction;
(ii) The name(s) of and distance(s) to any covered port, military installation, or any other facility or property of the U.S. Government as identified in this part and that is relevant to CFIUS jurisdiction given the location of the real estate.
(iii) A description of the real estate that is the subject of the transaction including the approximate size (in acres, feet, or other appropriate measurement); nature of the real estate (e.g., zoning type and the major topographical or other features of the real estate); and current use of the real estate including any physical security measures.
(iv) A description of the plans of the foreign person with respect to the real estate and structures that are or will be on the real estate; and
(v) A description of any leases, licenses, permits, easements, encumbrances, or other grants or approvals associated with the real estate, including whether any involve the U.S. Government.
(4) A statement as to whether the foreign person will have any of the following rights or abilities with respect to the real estate as a result of the transaction:
(i) To physically access the real estate;
(ii) To exclude others from physically accessing the real estate;
(iii) To improve or develop the real estate; or
(iv) To attach fixed or immovable structures or objects to the real estate.
(5) The name of the ultimate parent of the foreign person.
(6) The address and principal place of business of the foreign person and its ultimate parent.
(7) A complete pre-transaction organizational chart (and post-transaction, if different) including, information that identifies the name, principal place of business, place of incorporation or other legal organization (for entities); nationality (for individuals); and ownership percentage (expressed in terms of both voting and economic interest, if different) for each of the following:
(8) Information regarding all foreign government ownership in the foreign person's ownership structure, including nationality and percentage of ownership, as well as any rights that a foreign government holds, directly or indirectly, with respect to the foreign person.
(9) With respect to the foreign person that is party to the transaction and any of its parents, as applicable, a brief summary of their respective business activities.
(10) A statement as to whether a party to the transaction is stipulating that the transaction is a covered real estate transaction and a description of the basis for the stipulation.
(11) A statement as to whether any party to the transaction has been party to another transaction previously notified or submitted to the Committee, and the case number assigned by the Committee regarding such transaction(s).
(12) A statement (including relevant jurisdiction and criminal case law number or legal citation) as to whether the holder of the real estate, the foreign person, any parent of the foreign person, or any person of which the foreign person is a parent, has been convicted in the last 10 years of a crime in any jurisdiction.
(d) Each party submitting a declaration shall provide a certification of the information contained in the declaration consistent with §802.202. A sample certification may be found on the Committee's section of the Department of the Treasury website.
(e) A party that offers a stipulation under paragraph (c)(10) of this section acknowledges that the Committee and the President are entitled to rely on such stipulation in determining whether the transaction is a covered real estate transaction for the purposes of section 721 and all authorities thereunder, and waives the right to challenge any such determination. Neither the Committee nor the President is bound by any such stipulation, nor does any such stipulation limit the ability of the Committee or the President to act on any authority provided under section 721 with respect to any covered real estate transaction.
(f) In the case of a transaction where a U.S. public entity is a party to the transaction and is not submitting a declaration, the other party or parties to the transaction shall provide the information set out in this section with respect to itself and, to the extent known or reasonably available to it, with respect to the U.S. public entity.
(a) Upon receipt of a declaration submitted under §802.401, the Staff Chairperson shall promptly inspect the declaration and shall promptly notify in writing all parties to a transaction that have submitted a declaration that:
(2) The Staff Chairperson has determined not to accept the declaration and circulate the declaration to the Committee because the declaration is incomplete, and an explanation of the material respects in which the declaration is incomplete.
(b) A 30-day period for assessment of a transaction that is the subject of a declaration shall commence on the date on which the declaration is received by the Committee from the Staff Chairperson. Such period shall end no later than the thirtieth day after it has commenced, or if the thirtieth day is not a business day, no later than the next business day after the thirtieth day.
(c) During the 30-day assessment period, the Staff Chairperson may invite the parties to a covered real estate transaction to attend a meeting with the Committee staff to discuss and clarify issues pertaining to the transaction.
(d) If the Committee notifies the parties to a transaction that have submitted a declaration under §802.401 that the Committee intends to conclude all action under section 721 with respect to that transaction, each party that has submitted additional information subsequent to the original declaration shall file a certification as described in §802.202. A sample certification may be found on the Committee's section of the Department of the Treasury website.
(e) If a party fails to provide the certification required under paragraph (d) of this section, the Committee may, at its discretion, take any of the actions under §802.405.
(1) Reject any declaration that does not comply with §802.402 and so inform the parties promptly in writing;
(2) Reject any declaration at any time, and so inform the parties promptly in writing, if, after the declaration has been submitted and before the Committee has taken one of the actions specified in §802.405:
(i) There is a material change in the covered real estate transaction as to which a declaration has been submitted; or
(b) The Staff Chairperson shall notify the party (or parties) that submitted a declaration when the Committee has found that the transaction that is the subject of a declaration is not a covered real estate transaction.
(c) Parties to a transaction that have submitted a declaration under §802.401 may request in writing, at any time prior to the Committee taking action under §802.405, that such declaration be withdrawn. Such request shall be directed to the Staff Chairperson and shall state the reasons why the request is being made and state whether the transaction that is the subject of the declaration is being fully and permanently abandoned. An official of the Department of the Treasury will promptly advise the parties to the transaction in writing of the Committee's decision.
(d) The Committee may not request or recommend that a declaration be withdrawn and refiled, except to permit parties to a covered real estate transaction to correct material errors or omissions, or describe material changes to the transaction, in the declaration submitted with respect to that covered real estate transaction.
Note 1 to §802.404: See §802.401(e) regarding the prohibition on submitting a declaration regarding the same transaction or a substantially similar transaction for which a written notice has been filed, or a declaration submitted under part 800 of this chapter, without the approval of the Staff Chairperson.
(a) Upon receiving a declaration submitted under §802.401 with respect to a covered real estate transaction, the Committee may, at the discretion of the Committee:
(1) If the Committee has reason to believe that the transaction may raise national security considerations, request that the parties to the transaction file a written notice under subpart E;
(2) Inform the parties to the transaction that the Committee is not able to conclude action under section 721 with respect to the transaction on the basis of the declaration and that the parties may file a written notice under subpart E to seek written notification from the Committee that the Committee has concluded all action under section 721 with respect to the transaction;
(3) Initiate a unilateral review of the transaction under §802.501(c); or
(b) The Committee shall take action under paragraph (a) of this section within the time period set forth in §802.403(b).
(a) Except as otherwise prohibited under paragraph (j) of this section, a party or parties to a proposed or completed transaction may file a voluntary notice of the transaction with the Committee. Voluntary notice to the Committee is filed by sending an electronic copy of the notice that includes, in English, the information set out in §802.502, including the certification required under paragraph (h) of that section. For electronic submission instructions, see the Committee's section of the Department of the Treasury website.
(b) If the Committee determines that a transaction for which no voluntary notice has been filed under this part, and with respect to which the Committee has not informed the parties in writing that the Committee has concluded all action under section 721, may be a covered real estate transaction and may raise national security considerations, the Staff Chairperson, acting on the recommendation of the Committee, may request the parties to the transaction to provide to the Committee the information necessary to determine whether the transaction is a covered real estate transaction, and if the Committee determines that the transaction is a covered real estate transaction, to file a notice of such covered real estate transaction under paragraph (a) of this section.
(c) With respect to any covered real estate transaction:
(1) Any member of the Committee, or his or her designee at or above the Under Secretary or equivalent level, may, subject to paragraph (c)(2) of this section, file an agency notice to the Committee through the Staff Chairperson regarding a transaction if:
(i) That member has reason to believe that the transaction is a covered real estate transaction and may raise national security considerations and:
(A) The Committee has not informed the parties to such transaction in writing that the Committee has concluded all action under section 721 with respect to such transaction; and
(B) The President has not announced a decision not to exercise the President's authority under section 721(d) with respect to such transaction; or
(ii) The transaction is a covered real estate transaction and:
(A) The Committee has informed the parties to such transaction in writing that the Committee has concluded all action under section 721 with respect to such transaction or determined that such transaction is not a covered real estate transaction, or the President has announced a decision not to exercise the President's authority under section 721(d) with respect to such transaction; and
(1) A party to such transaction submitted false or misleading material information to the Committee in connection with the Committee's consideration of such transaction or omitted material information, including material documents, from information submitted to the Committee; or
(2) A party to such transaction breaches a mitigation agreement or condition described in section 721(l)(3)(A), such breach is certified to the Committee by the lead department or agency monitoring and enforcing such agreement or condition as a material breach, and the Committee determines that there are no other adequate and appropriate remedies or enforcement tools available to address such breach.
(2)(i) That is a transaction where a foreign person is not an excepted real estate investor due to the application of §802.215(d), any member of the Committee, or his or her designee at or above the Under Secretary or equivalent level, may file an agency notice to the Committee through the Staff Chairperson regarding such transaction if:
(A) That member has reason to believe that the transaction is a covered real estate transaction and may raise national security considerations;
(B) The Committee has not informed the parties to such transaction in writing that the Committee has concluded all action under section 721 with respect to such transaction; and
(C) The President has not announced a decision not to exercise the President's authority under section 721(d) with respect to such transaction.
(ii) No notice filed under this paragraph (c)(2) shall be made with respect to a transaction more than one year after the completion date of the transaction, unless the Chairperson of the Committee determines, in consultation with other members of the Committee, that because the foreign person no longer meets all the criteria set forth in §802.215(a)(1) or (2), (a)(3)(i) through (iii), or (c)(1)(i) through (iii), the transaction may threaten to impair the national security of the United States, and in no event shall an agency notice under this paragraph be made with respect to such a transaction more than three years after the completion date of the transaction.
(d) Notices filed under paragraph (c) of this section are deemed accepted upon their receipt by the Staff Chairperson. No agency notice under paragraph (c)(1) of this section shall be made with respect to a real estate transaction more than three years after the completion date of the transaction, unless the Chairperson of the Committee, in consultation with other members of the Committee, files such an agency notice.
(e) No communications other than those described in paragraphs (a) and (c) of this section shall constitute the filing or submitting of a notice for purposes of section 721.
(f) Upon receipt of the electronic copy of a notice filed under paragraph (a) of this section, including the certification required by §802.502(h), the Staff Chairperson shall promptly inspect such notice for completeness.
(g) Parties to a transaction are encouraged to consult with the Committee in advance of filing a notice and, in appropriate cases, to file with the Committee a draft notice or other appropriate documents to aid the Committee's understanding of the transaction and to provide an opportunity for the Committee to request additional information to be included in the notice. Any such pre-notice consultation should take place, or any draft notice should be provided, at least five business days before the filing of a voluntary notice. All information and documentary material made available to the Committee under this paragraph shall be considered to have been filed with the President or the President's designee for purposes of section 721(c) and §802.802.
(h) Information and other documentary material provided by any party to the Committee after the filing of a voluntary notice under this section shall be part of the notice, and shall be subject to the final certification required under §802.502(l).
(i) For any voluntarily submitted draft or formal written notice that includes a stipulation under section §802.502(j) that a transaction is a covered real estate transaction, the Committee shall provide comments on the draft or formal written notice or accept the formal written notice of a covered real estate transaction not later than the date that is 10 business days after the date of submission of the draft or formal written notice.
(j) No party to a transaction may file a notice under paragraph (a) of this section if the transaction has been the subject of a declaration submitted under subpart D and the Committee has not yet taken any action with respect to the transaction under §802.405.
(a) If a party or the parties to a transaction file a voluntary notice, they shall provide in detail the information set out in this section, which must be accurate and complete with respect to the party or parties filing the voluntary notice and to the transaction. (See also paragraph (k) of this section regarding U.S. public entities and paragraph (h) of this section and §802.202 regarding certification requirements.)
(b) A voluntary notice filed under §802.501 shall describe or provide, as applicable:
(1) The following information regarding the transaction in question:
(i) A summary setting forth the essentials of the transaction, including a statement of the purpose of the transaction, its scope, both within and outside of the United States, as applicable, whether the foreign person is acquiring a collection of assets or interest in an entity, and the extent to which it is part of a larger project undertaken by the foreign person;
(ii) The nature of the transaction, for example, whether the transaction involves a purchase, lease, or concession of real estate and the term, if any;
(iii) The name, United States address (if any), website address (if any), nationality (for individuals) or place of incorporation or other legal organization (for entities), and address of the principal place of business of each foreign person that is a party to the transaction;
(iv) The name, address, website address (if any), principal place of business, and place of incorporation or other legal organization of the current holder of interest in the real estate that is the subject of the transaction;
(v) In the case that a U.S. public entity is a party to the covered real estate transaction, the name, telephone number, and email address of the primary point of contact for the U.S. public entity;
(vi) The name, address, and nationality (for individuals) or place of incorporation or other legal organization (for entities) of:
(vii) The name, address, website address (if any), and nationality (for individuals) or place of incorporation or other legal organization (for entities) of the foreign person or foreign persons that will be afforded property rights with respect to the real estate that is the subject of the covered real estate transaction;
(viii) The actual or expected completion date of the transaction;
(ix) A good faith approximation of the fair market value of the interest acquired in the covered real estate in U.S. dollars, as of the date of the notice;
(x) The name of any and all financial institutions and real estate agents/brokers involved in the transaction, including as advisors, underwriters, or sources of financing for the transaction;
(xi) A copy of the definitive documentation of the transaction, such as a purchase, lease, or concession agreement, or if none exists, the document establishing the material terms of the transaction, which in the context of a transaction involving a covered port, must be signed and dated;
(xii) Whether the foreign person will have any of the following rights or abilities with respect to the real estate as a result of the transaction and any additional information regarding such property rights:
(A) To physically access the real estate;
(B) To exclude others from physically accessing the real estate;
(C) To improve or develop the real estate; or
(D) To attach fixed or immovable structures or objects to the real estate.
(2) A detailed description of real estate that is the subject of the transaction, including as applicable:
(i) The location, by address and geographic coordinates in decimal degrees to the 4th digit, of the real estate that is the subject of the covered real estate transaction;
(ii) A description of the real estate that is the subject of the covered real estate transaction including the approximate size (in acres, feet, or other appropriate measurement); nature of the real estate (e.g., zoning type and the major topographical or other features of the real estate); current use of the real estate; and structures that are or will be on the real estate;
(iii) A description of any leases, licenses, permits, easements, encumbrances, or other grants or approvals associated with the real estate, including whether any involve the U.S. Government, as well as any feasibility studies conducted with respect to the real estate; and
(iv) The name(s) of and distance(s) to any relevant covered port, military installation, or any other facility or property of the U.S. Government as identified in this part, and that is relevant to CFIUS jurisdiction given the location of the real estate that is the subject of the transaction.
(3) With respect to the foreign person engaged in the transaction and its parents:
(i) A description of the business or businesses of the foreign person and its ultimate parent, and the CAGE codes, NAICS codes, and DUNS numbers, if any, for such businesses;
(ii) The plans of the foreign person for the real estate with respect to:
(A) Use and development of the real estate;
(B) Changing the nature of the real estate including building new structures or removing or altering current structures, including the anticipated dimensions and any physical security measures employed at the real estate; and
(C) Assigning, modifying, or terminating any leases, licenses, permits, easements, encumbrances, or other grants or approvals referred to in paragraph (b)(2)(iii) of this section;
(A) Has or controls property rights or has or controls ownership interests, including contingent equity interest, of the foreign person that is a party to the transaction or any parent of the foreign person, and if so, the nature and amount of any such interests, and with regard to contingent equity interest, the terms and timing of conversion;
(B) Has the right or power to appoint any of the principal officers or the members of the board of directors (including other persons who perform the duties usually associated with such titles) of the foreign person that is a party to the transaction or any parent of that foreign person;
(C) Holds any other contingent interest (for example, such as might arise from a lending transaction) in the foreign person that is a party to the transaction and, if so, the rights that are covered by this contingent interest, and the manner in which they would be enforced; or
(D) Has any other affirmative or negative rights or powers with respect to control over the foreign person engaged in the transaction, and if there are any such rights or powers, their source (for example, a “golden share,” shareholders agreement, contract, statute, or regulation) and the mechanics of their operation;
(v) Any formal or informal arrangements among foreign persons that hold an ownership interest in any foreign person that is a party to the transaction or between such foreign person and other foreign persons to act in concert on particular matters affecting the real estate that is the subject of the transaction, and provide a copy of any documents that establish those rights or describe those arrangements;
(vi) For each member of the board of directors or equivalent governing body (including external directors and other persons who perform duties usually associated with such titles) and officers (including president, senior vice president, executive vice president, and other persons who perform duties normally associated with such titles) of the foreign person engaged in the transaction and its immediate, intermediate, and ultimate parents, and for any individual having an ownership interest of five percent or more in the foreign person engaged in the transaction and in the foreign person's ultimate parent, the following information:
(5) Date of birth, in the format MM/DD/YYYY;
(C) Business phone number, website address, and email address; and
(c) The voluntary notice shall list any filings with, or reports to, agencies of the U.S. Government that have been or will be made with respect to the transaction prior to its completion, indicating the agencies concerned, the nature of the filing or report, the date on which it was filed or the estimated date by which it will be filed, and a relevant contact point and/or telephone number within the agency, if known.
(d) In the case of the establishment of a joint venture in which one or more of the parties is contributing covered real estate, information for the voluntary notice shall be prepared on the assumption that the foreign person that is party to the joint venture has made a purchase or lease, or been granted a concession to, the covered real estate that the other party to the joint venture is contributing or transferring to the joint venture. The voluntary notice shall describe the name and address of the joint venture and the entities that established, or are establishing, the joint venture.
(e) Parties filing a voluntary notice shall, during the time that the matter is pending before the Committee or the President, promptly advise the Staff Chairperson of any material changes in plans, facts and circumstances addressed in the notice, and information provided or required to be provided to the Committee under this section, and shall file amendments to the notice to reflect such material changes. Such amendments shall become part of the notice filed by such persons under §802.501, and the certifications required under paragraphs (h) and (l) of this section shall apply to such amendments.
(f) Parties filing a voluntary notice shall include:
(1) A complete pre-transaction organizational chart (and post-transaction, if different) including, information that identifies the name, principal place of business, and place of incorporation or other legal organization (for entities); nationality (for individuals); and ownership percentage (expressed in terms of both voting and economic interest, if different) for each of the following:
(iii) The transaction has resulted or could result in a foreign person being afforded property rights with respect to covered real estate, and the reasons for its view, focusing in particular on any powers (for example, by virtue of an agreement, statute, or regulation) that the foreign person will have with regard to the covered real estate, and how those powers can or will be exercised.
(g) Parties filing a voluntary notice shall include information as to whether:
(1) Any party to the transaction is, or has been, a party to a mitigation agreement entered into or condition imposed under section 721, and if so, shall specify the date and purpose of such agreement or condition and the U.S. Government signatories; and
(2) Any party to the transaction (including such party's parents, subsidiaries, or entities under common control with the party) has been a party to a transaction previously notified to the Committee.
(h) Each party filing a voluntary notice shall provide a certification of the notice consistent with §802.202. A sample certification may be found on the Committee's section of the Department of the Treasury website.
(i) Parties filing a voluntary notice shall include with the notice a list identifying each document provided as part of the notice, including all documents provided as attachments or exhibits to the narrative response.
(j) A party filing a voluntary notice may stipulate that the transaction is a covered real estate transaction. A stipulation offered by any party under this section must be accompanied by a detailed description of the basis for the stipulation. A party that offers such a stipulation acknowledges that the Committee and the President are entitled to rely on such stipulation in determining whether the transaction is a covered real estate transaction for the purposes of section 721 and all authorities thereunder, and waives the right to challenge any such determination. Neither the Committee nor the President is bound by any such stipulation, nor does any such stipulation limit the ability of the Committee or the President to act on any authority provided under section 721 with respect to any covered real estate transaction.
(k) In the case of a transaction where a U.S. public entity is a party to the transaction, the notifying party or parties may be the non-U.S. public entity. Each notifying party shall provide the information set out in this section with respect to itself and, to the extent known or reasonably available to it, with respect to the U.S. public entity.
(l) At the conclusion of a review or investigation, each party that has filed additional information subsequent to the original notice shall file a final certification. (See §802.202.) A sample certification may be found at the Committee's section of the Department of the Treasury website.
(a) The Staff Chairperson shall accept a voluntary notice the next business day after the Staff Chairperson has:
(1) Determined that the notice complies with §802.502; and
(b) A 45-day period for review of a transaction shall commence on the date on which the voluntary notice has been accepted, agency notice has been received by the Staff Chairperson, or the Chairperson of the Committee has requested a notice under §802.501(b). Such review shall end no later than the forty-fifth day after it has commenced, or if the forty-fifth day is not a business day, no later than the next business day after the forty-fifth day.
(c) The Staff Chairperson shall promptly advise in writing all parties to a transaction that have filed a voluntary notice of:
(d) Within two business days after receipt of an agency notice by the Staff Chairperson, the Staff Chairperson shall send written advice of such notice to the parties to the transaction that is subject to the notice. Such written advice shall identify the date on which the review began.
(1) Reject any voluntary notice that does not comply with §802.501 or §802.502 and so inform the parties promptly in writing;
(4) Reject any voluntary notice before the conclusion of a review or investigation, and so inform the parties promptly in writing, if one of the parties submitting the voluntary notice has not submitted the final certification required by §802.502(l).
(b) Notwithstanding the authority of the Staff Chairperson under paragraph (a) of this section to reject an incomplete notice, the Staff Chairperson may defer acceptance of the notice, and the beginning of the review period specified by §802.503, to obtain any information required under this section that has not been submitted by the notifying party or parties or other parties to the transaction. Where necessary to obtain such information, the Staff Chairperson may inform any non-notifying party or parties that notice has been filed with respect to a transaction involving the party, and request that certain information required under this section, as specified by the Staff Chairperson, be provided to the Committee within seven days after receipt of the Staff Chairperson's request.
(c) The Staff Chairperson shall notify the parties when the Committee has found that the transaction that is the subject of a voluntary notice is not a covered real estate transaction.
(d) Example: The Staff Chairperson receives a joint notice from Corporation A, a foreign person, and Corporation X, a company that is selling covered real estate. The joint notice does not contain any information described under §802.502 concerning the nature of the real estate. The Staff Chairperson may reject the notice or defer the start of the review period until the parties have supplied the omitted information.
(a) After a review of a notified transaction under §802.503, the Committee shall undertake an investigation of any transaction that it has determined to be a covered real estate transaction if:
(b) The Committee shall also undertake, after a review of a covered real estate transaction under §802.503, an investigation to determine the effects on national security of any covered real estate transaction that would result in control by a foreign person of critical infrastructure, as defined in §800.214 of this title, of or within the United States, if the Committee determines that the transaction could impair the national security and such impairment has not been mitigated.
(c) The Committee shall undertake an investigation as described in paragraph (b) of this section unless the Chairperson of the Committee (or the Deputy Secretary of the Treasury) and the head of any lead agency (or his or her delegee at the deputy level or equivalent) designated by the Chairperson determine on the basis of the review that the covered real estate transaction will not impair the national security of the United States.
If the Committee determines, during the review period described in §802.503, not to undertake an investigation of a notified covered real estate transaction, action under section 721 shall be concluded. An official at the Department of the Treasury shall promptly inform the parties to a covered real estate transaction in writing of a determination of the Committee not to undertake an investigation and to conclude action under section 721.
(a) If it is determined that an investigation should be undertaken, such investigation shall commence no later than the end of the review period described in §802.503.
(b) An official of the Department of the Treasury shall promptly inform the parties to a covered real estate transaction in writing of the commencement of an investigation.
(a) Subject to paragraph (e) of this section, the Committee shall complete an investigation no later than the forty-fifth day after the date the investigation commences, or, if the forty-fifth day is not a business day, no later than the next business day after the forty-fifth day.
(2) The Committee is unable to reach a decision on whether to recommend that the President suspend or prohibit the transaction; or
(c) In circumstances when the Committee sends a report to the President requesting the President's decision with respect to a covered real estate transaction, such report shall include information relevant to sections 721(d)(4)(A) and (B), and shall present the Committee's recommendation. If the Committee is unable to reach a decision to present a single recommendation to the President, the Chairperson of the Committee shall submit a report of the Committee to the President setting forth the differing views and presenting the issues for decision.
(d) Upon completion or termination of an investigation, if the Committee determines to conclude all deliberative action under section 721 with regard to a notified covered real estate transaction without sending a report to the President, action under section 721 shall be concluded. An official at the Department of the Treasury shall promptly advise the parties to such a transaction in writing of a determination to conclude action.
(e) In extraordinary circumstances, the Chairperson may, upon a written request signed by the head of a lead agency, extend an investigation for one 15-day period. A request to extend an investigation must describe, with particularity, the extraordinary circumstances that warrant the Chairperson extending the investigation. The authority of the head of a lead agency to request the extension of an investigation may not be delegated to any person other than the deputy head (or equivalent thereof) of the lead agency. If the Chairperson extends an investigation under this paragraph with respect to a covered real estate transaction, the Committee shall promptly notify the parties to the transaction of the extension.
(f) For purposes of paragraph (e) of this section, the term extraordinary circumstances means circumstances for which extending an investigation is necessary and the appropriate course of action, in the Chairperson's discretion, due to a force majeure event or to protect the national security of the United States.
(a) A party (or parties) to a transaction that has filed notice under §802.501(a) may request in writing, at any time prior to conclusion of all action under section 721, that such notice be withdrawn. Such request shall be directed to the Staff Chairperson and shall state the reasons why the request is being made. Such requests will ordinarily be granted, unless otherwise determined by the Committee. An official of the Department of the Treasury will promptly advise the parties to the transaction in writing of the Committee's decision.
(i) A process for tracking actions that may be taken by any party to the covered real estate transaction before a notice is refiled under §802.501; and
(ii) Interim protections to address specific national security concerns with the covered real estate transaction identified during the review or investigation of the covered real estate transaction.
(d) A notice of a transaction that is submitted under paragraph (c)(2) of this section shall be deemed a new notice for purposes of the regulations in this part, including §802.701.
(a) In any assessment, review, or investigation of a covered real estate transaction, the Committee should consider the factors specified in section 721(f), as applicable, and, as appropriate, require the parties to provide to the Committee the information necessary to consider such factors. The Committee's assessment, review, or investigation (if necessary) shall examine, as appropriate, whether:
(1) The transaction is a covered real estate transaction;
(2) There is credible evidence to support a belief that any foreign person party to a covered real estate transaction might take action that threatens to impair the national security of the United States; and
(b) During an assessment, review, or investigation, the Staff Chairperson may invite the parties to a notified transaction to attend a meeting with the Committee staff to discuss and clarify issues pertaining to the transaction. During an investigation, a party to the transaction under investigation may request a meeting with the Committee staff; such a request ordinarily will be granted.
(c) The Staff Chairperson shall be the point of contact for receiving material filed with the Committee, including notices and declarations.
(e) The parties' description of a transaction in a declaration or notice does not limit the ability of the Committee to, as appropriate, assess, review, or investigate, or exercise any other authorities available under section 721 with respect to any covered real estate transaction that the Committee identifies as having been notified to the Committee based upon the facts set forth in the declaration or notice, any additional information provided to the Committee subsequent to the original declaration or notice, or any other information available to the Committee.
Any deadline or time limitation under subparts D or E imposed on the Committee shall be tolled during a lapse in appropriations.
All authority available to the President or the Committee under section 721(d), including divestment authority, shall remain available at the discretion of the President with respect to any covered real estate transaction. Subject to §802.501(c)(1)(ii), such authority shall not be exercised if:
(a) The Committee, through its Staff Chairperson, has advised a party (or the parties) in writing that a particular transaction with respect to which a voluntary notice or a declaration has been filed is not a covered real estate transaction;
(b) The parties to the transaction have been advised in writing under §802.405(a)(4), §802.506, or §802.508(d) that the Committee has concluded all action under section 721 with respect to the covered real estate transaction; or
(c) The President has previously announced, under section 721(d), his or her decision not to exercise his or her authority under section 721 with respect to the covered real estate transaction.
(a) Parties to a transaction that is notified or declared under subpart D or E, or a transaction for which no notice or declaration has been submitted and for which the Staff Chairperson has requested information to assess whether the transaction is a covered real estate transaction, shall provide information to the Staff Chairperson that will enable the Committee to conduct a full assessment, review, and/or investigation of the transaction. Parties to a transaction that have filed information with the Committee shall promptly advise the Staff Chairperson of any material changes to such information. If deemed necessary by the Committee, information may be obtained from parties to a transaction or other persons through subpoena or otherwise, under the Defense Production Act Reauthorization of 2003, as amended (50 U.S.C. 4555(a)).
(b) Documentary materials or information required or requested to be filed with the Committee under this part shall be submitted in English. Supplementary materials written in a foreign language shall be submitted in certified English translation.
(c) Any information filed with the Committee in connection with any action for which a report is required under section 721(l)(6)(B) with respect to the implementation of a mitigation agreement or condition described in section 721(l)(3)(A) shall be accompanied by a certification that complies with the requirements of section 721(n) and §802.202. A sample certification may be found at the Committee's section of the Department of the Treasury website.
(a) Except as provided in paragraph (b) of this section, any information or documentary material submitted or filed with the Committee under this part, including information or documentary material filed under §802.501(g), shall be exempt from disclosure under the Freedom of Information Act, as amended (5 U.S.C. 552 et seq.), and no such information or documentary material may be made public.
(4) Information that the parties have consented to be disclosed to third parties;
(c) This section shall continue to apply with respect to information and documentary material submitted or filed with the Committee in any case where:
(2) A request to withdraw a notice or a declaration is granted under §802.509 or §802.404(c), respectively, or where a notice or a declaration has been rejected under §802.504(a) or §802.404(a), respectively;
(3) The Committee determines that a notified or declared transaction is not a covered real estate transaction; or
(4) Such information or documentary material was filed under subpart D and the parties do not subsequently file a notice under subpart E.
(d) Nothing in paragraph (a) of this section shall be interpreted to prohibit the public disclosure by a party of documentary material or information that it has submitted or filed with the Committee. Any such documentary material or information so disclosed may subsequently be reflected in the public statements of the Chairperson, who is authorized to communicate with the public and the Congress on behalf of the Committee, or of the Chairperson's designee.
(e) The provisions of the Defense Production Act Reauthorization of 2003, as amended (50 U.S.C. 4555(d)) relating to fines and imprisonment shall apply with respect to the disclosure of information or documentary material filed with the Committee under these regulations.
(a) Any person who submits a declaration or notice with a material misstatement or omission or makes a false certification under §802.402, §802.403, or §802.502 may be liable to the United States for a civil penalty not to exceed $250,000 per violation. The amount of the penalty imposed for a violation shall be based on the nature of the violation.
(b) Any person who violates a material provision of a mitigation agreement with, a material condition imposed by, or an order issued by, the United States under section 721(l) may be liable to the United States for a civil penalty not to exceed $250,000 per violation or the value of the transaction, whichever is greater. For clarification, under the previous sentence, whichever penalty amount is greater may be imposed per violation, and the amount of the penalty imposed for a violation shall be based on the nature of the violation.
(c) A mitigation agreement entered into or amended under section 721(l) may include a provision providing for liquidated or actual damages for breaches of the agreement. The mitigation agreement shall specify the amount of any liquidated damages that are a reasonable assessment of the harm to the national security that could result from a breach of the agreement. Any mitigation agreement containing a liquidated damages provision shall include a provision specifying that the Committee may consider the severity of the breach in deciding whether to seek a lesser amount than that stipulated in the agreement.
(d) A determination to impose penalties under paragraph (a) or (b) of this section must be made by the Committee. Notice of the penalty, including a written explanation of the conduct to be penalized and the amount of the penalty, shall be sent to the subject person electronically and by U.S. mail or courier service. Notice shall be deemed to have been effected by the earlier of the date of electronic transmission and the date of receipt of U.S. mail or courier service. For the purposes of this section, the term subject person means the person or persons who may be liable to the United States for a civil penalty.
(e) Upon receiving notice of a penalty to be imposed under paragraphs (a) through (c) of this section, the subject person may, within 15 business days of receipt of such notice, submit a petition for reconsideration to the Staff Chairperson, including a defense, justification, or explanation for the conduct to be penalized. The Committee will review the petition and issue any final penalty determination within 15 business days of receipt of the petition. The Staff Chairperson and the subject person may extend either such period through written agreement. The Committee and the subject person may reach an agreement on an appropriate remedy at any time before the Committee issues any final penalty determination.
(f) The penalties and damages authorized in paragraphs (a) through (c) of this section may be recovered in a civil action brought by the United States in federal district court.
(g) Section 2 of the False Statements Accountability Act of 1996, as amended (18 U.S.C. 1001), shall apply to all information provided to the Committee under section 721, including by any party to a covered real estate transaction.
(h) The penalties and damages available under this section are without prejudice to other penalties, civil or criminal, available under law.
(i) The imposition of a civil monetary penalty or damages under these regulations creates a debt due to the U.S. Government. The Department of the Treasury may take action to collect the penalty or damages assessed if not paid within the time prescribed by the Committee and notified to the applicable party or parties. In addition or instead, the matter may be referred to the Department of Justice for appropriate action to recover the penalty or damages.
If, at any time after a mitigation agreement or condition is entered into or imposed under section 721(l), the Committee or a lead agency in coordination with the Staff Chairperson, as the case may be, determines that a party or parties to the agreement or condition are not in compliance with the terms of the agreement or condition, the Committee or a lead agency in coordination with the Staff Chairperson may, in addition to the authority of the Committee to impose penalties under section 721(h) and to unilaterally initiate a review of any covered real estate transaction under section 721(b)(1)(D)(iii):
(b) Require that the party or parties submit a written notice or declaration under clause (i) of section 721(b)(1)(C) with respect to a covered real estate transaction initiated after the date of the determination of noncompliance and before the date that is five years after the date of the determination to the Committee to initiate a review of the transaction under section 721(b); or
(a) The Committee may determine at any time that a foreign state has made significant progress toward establishing and effectively utilizing a robust process to analyze foreign investments for national security risks and to facilitate coordination with the United States on matters relating to investment security.
(b) The Committee may rescind a determination under paragraph (a) of this section if the Committee determines that such a rescission is appropriate.
(c) The Chairperson of the Committee shall publish a notice of any determination or rescission of a determination under paragraph (a) or (b) of this section, respectively, in the Federal Register.
(a) A determination under §802.1001(a) shall take effect immediately upon publication of a notice of such determination under §802.1001(c) and remain in effect unless rescinded under §802.1001(b).
(b) A rescission of a determination under §802.1001(b) shall take effect on the date specified in the notice published under §802.1001(c).
(c) A determination under §802.1001(a) does not apply to any transaction for which a declaration or notice has been accepted by the Staff Chairperson under §802.403(a)(1) or §802.503(a), respectively.
(d) A rescission of a determination under §802.1001(b) does not apply to any transaction for which:
(1) The completion date is prior to the date upon which the rescission of a determination under paragraph (b) of this section becomes effective; or
(2) Before publication of the rescission of determination under §802.1001(c), the parties to the transaction have executed a binding written agreement, or other binding document, establishing the material terms of the transaction that is ultimately consummated.
Adelphi Laboratory Center Adelphi, MD.
Air Force Maui Optical and Supercomputing Site Maui, HI.
Air Force Office of Scientific Research Arlington, VA.
Andersen Air Force Base Yigo, Guam.
Army Futures Command Austin, TX.
Army Research Lab—Orlando Simulations and Training Technology Center Orlando, FL.
Army Research Lab—Raleigh Durham Raleigh Durham, NC.
Arnold Air Force Base Coffee County and Franklin County, TN.
Beale Air Force Base Yuba City, CA.
Biometric Technology Center (Biometrics Identity Management Activity) Clarksburg, WV.
Buckley Air Force Base Aurora, CO.
Camp MacKall Pinebluff, NC.
Cape Cod Air Force Station Sandwich, MA.
Cape Newenham Long Range Radar Site Cape Newenham, AK.
Cavalier Air Force Station Cavalier, ND.
Cheyenne Mountain Air Force Station Colorado Springs, CO.
Clear Air Force Station Anderson, AK.
Creech Air Force Base Indian Springs, NV.
Davis-Monthan Air Force Base Tucson, AZ.
Defense Advanced Research Projects Agency Arlington, VA.
Eareckson Air Force Station Shemya, AK.
Eielson Air Force Base Fairbanks, AK.
Ellington Field Joint Reserve Base Houston, TX.
Fairchild Air Force Base Spokane, WA.
Fort Benning Columbus, GA.
Fort Belvoir Fairfax County, VA.
Fort Bliss El Paso, TX.
Fort Campbell Hopkinsville, KY.
Fort Carson Colorado Springs, CO.
Fort Detrick Frederick, MD.
Fort Drum Watertown, NY.
Fort Gordon Augusta, GA.
Fort Hood Killeen, TX.
Fort Knox Fort Knox, KY.
Fort Leavenworth Leavenworth, KS.
Fort Lee Petersburg, VA.
Fort Leonard Wood Pulaski County, MO.
Fort Meade Anne Arundel County, MD.
Fort Riley Junction City, KS.
Fort Shafter Honolulu, HI.
Fort Sill Lawton, OK.
Fort Stewart Hinesville, GA.
Fort Yukon Long Range Radar Site Fort Yukon, AK.
Francis E. Warren Air Force Base Cheyenne, WY.
Guam Tracking Station Inarajan, Guam.
Hanscom Air Force Base Lexington, MA.
Holloman Air Force Base Alamogordo, NM.
Holston Army Ammunition Plant Kingsport, TN.
Joint Base Anacostia-Bolling Washington, DC.
Joint Base Andrews Camp Springs, MD.
Joint Base Elmendorf-Richardson Anchorage, AK.
Joint Base Langley-Eustis Hampton, VA and Newport News, VA.
Joint Base Lewis-McChord Tacoma, WA.
Joint Base McGuire-Dix-Lakehurst Lakehurst, NJ.
Joint Base Pearl Harbor-Hickam Honolulu, HI.
Joint Base San Antonio San Antonio, TX.
Joint Expeditionary Base Little Creek-Fort Story Virginia Beach, VA.
Kaena Point Satellite Tracking Station Waianae, HI.
King Salmon Air Force Station King Salmon, AK.
Kirtland Air Force Base Albuquerque, NM.
Kodiak Tracking Stations Kodiak Island, AK.
Los Angeles Air Force Base El Segundo, CA.
MacDill Air Force Base Tampa, FL.
Malmstrom Air Force Base Great Falls, MT.
Marine Corps Air Ground Combat Center Twentynine Palms Twentynine Palms, CA.
Marine Corps Air Station Beaufort Beaufort, SC.
Marine Corps Air Station Cherry Point Cherry Point, NC.
Marine Corps Air Station Miramar San Diego, CA.
Marine Corps Air Station New River Jacksonville, NC.
Marine Corps Air Station Yuma Yuma, AZ.
Marine Corps Base Camp Lejeune Jacksonville, NC.
Marine Corps Base Camp Pendleton Oceanside, CA.
Marine Corps Base Hawaii Kaneohe Bay, HI.
Marine Corps Base Hawaii, Camp H.M. Smith Halawa, HI.
Marine Corps Base Quantico Quantico, VA.
Mark Center Alexandria, VA.
Minot Air Force Base Minot, ND.
Moody Air Force Base Valdosta, GA.
Naval Air Station Joint Reserve Base New Orleans Belle Chasse, LA.
Naval Air Station Oceana Virginia Beach, VA.
Naval Air Station Oceana Dam Neck Annex Virginia Beach, VA.
Naval Air Station Whidbey Island Oak Harbor, WA.
Naval Base Guam Apra Harbor, Guam.
Naval Base Kitsap Bangor Silverdale, WA.
Naval Base Point Loma San Diego, CA.
Naval Base San Diego San Diego, CA.
Naval Base Ventura County—Port Hueneme Operating Facility Port Hueneme, CA.
Naval Research Laboratory Washington, DC.
Naval Research Laboratory—Blossom Point Welcome, MD.
Naval Research Laboratory—Stennis Space Center Hancock County, MS.
Naval Research Laboratory—Tilghman Tilghman, MD.
Naval Station Newport Newport, RI.
Naval Station Norfolk Norfolk, VA.
Naval Submarine Base Kings Bay Kings Bay, GA.
Naval Submarine Base New London Groton, CT.
Naval Surface Warfare Center Carderock Division—Acoustic Research Detachment Bayview, ID.
Naval Support Activity Crane Crane, IN.
Naval Support Activity Orlando Orlando, FL.
Naval Support Activity Panama City Panama City, FL.
Naval Support Activity Philadelphia Philadelphia, PA.
Naval Support Facility Carderock Bethesda, MD.
Naval Support Facility Dahlgren Dahlgren, VA.
Naval Support Facility Indian Head Indian Head, MD.
Naval Weapons Station Seal Beach Detachment Norco Norco, CA.
New Boston Air Station New Boston, NH.
Offutt Air Force Base Bellevue, NE.
Oliktok Long Range Radar Site Oliktok, AK.
Orchard Combat Training Center Boise, ID.
Peason Ridge Training Area Leesville, LA.
Pentagon Arlington, VA.
Peterson Air Force Base Colorado Springs, CO.
Picatinny Arsenal Morris County, NJ.
Piñon Canyon Maneuver Site Tyrone, CO.
Pohakuloa Training Area Hilo, HI.
Point Barrow Long Range Radar Site Point Barrow, AK.
Portsmouth Naval Shipyard Kittery, ME.
Radford Army Ammunition Plant Radford, VA.
Redstone Arsenal Huntsville, AL.
Rock Island Arsenal Rock Island, IL.
Rome Research Laboratory Rome, NY.
Schriever Air Force Base Colorado Springs, CO.
Seymour Johnson Air Force Base Goldsboro, NC.
Shaw Air Force Base Sumter, SC.
Southeast Alaska Acoustic Measurement Facility Ketchikan, AK.
Tin City Long Range Radar Site Tin City, AK.
Tinker Air Force Base Midwest City, OK.
Travis Air Force Base Fairfield, CA.
Tyndall Air Force Base Bay County, FL.
U.S. Army Natick Soldier Systems Center Natick, MA.
Watervliet Arsenal Watervliet, NY.
Wright-Patterson Air Force Base Dayton, OH.
Aberdeen Proving Ground Aberdeen, MD.
Camp Shelby Hattiesburg, MS.
Cape Canaveral Air Force Station Cape Canaveral, FL.
Dare County Range Manns Harbor, NC.
Edwards Air Force Base Edwards, CA.
Fallon Range Complex Fallon, NV.
Fort Bragg Fayetteville, NC.
Fort Greely Delta Junction, AK.
Fort Huachuca Sierra Vista, AZ.
Fort Irwin San Bernardino County, CA.
Fort Polk Leesville, LA.
Fort Wainwright Fairbanks, AK.
Hardwood Range Necehuenemedah, WI.
Hill Air Force Base Ogden, UT.
Mountain Home Air Force Base Mountain Home, ID.
Naval Air Station Meridian Meridian, MS.
Naval Air Station Patuxent River Lexington Park, MD.
Naval Air Weapons Station China Lake Ridgecrest, CA.
Naval Base Kitsap—Keyport Keyport, WA.
Naval Base Ventura County—Point Mugu Operating Facility Point Mugu, CA.
Naval Weapons Systems Training Facility Boardman Boardman, OR.
Nellis Air Force Base Las Vegas, NV.
Nevada Test and Training Range Tonopah, NV.
Pacific Missile Range Facility Kekaha, HI.
Patrick Air Force Base Cocoa Beach, FL.
Tropic Regions Test Center Wahiawa, HI.
Utah Test and Training Range Barro, UT.
Vandenberg Air Force Base Lompoc, CA.
West Desert Test Center Dugway, UT.
White Sands Missile Range White Sands Missile Range, NM.
Yuma Proving Ground Yuma, AZ.
90th Missile Wing, Francis E. Warren Air Force Base Missile Field (Colorado, Nebraska, and Wyoming) Logan, CO All lands except those located south of Township 8 North and east of Range 51 West using the Bureau of Land Management's Public Lands Survey System.
Morgan, CO All lands located north of Township 3 North using the Bureau of Land Management's Public Lands Survey System.
Sedgwick, CO All lands except those located east of Range 46 West using the Bureau of Land Management's Public Lands Survey System.
Washington, CO All lands located north of Township 4 North, and west of Range 52 West using the Bureau of Land Management's Public Lands Survey System.
Weld, CO All lands located north of Township 4 North, and east of Range 64 West using the Bureau of Land Management's Public Lands Survey System.
Banner, NE All.
Cheyenne, NE All.
Deuel, NE All lands located south of Township 15 North, and west of Range 43 West using the Bureau of Land Management's Public Lands Survey System.
Garden, NE All lands located south of Township 19 North, and west Range 43 West using the Bureau of Land Management's Public Lands Survey System.
Kimball, NE All.
Morrill, NE All lands except those located north of Township 21 North using the Bureau of Land Management's Public Lands Survey System.
Scotts Bluff, NE All.
Sioux, NE All lands except those located north of Township 26 North, and east of Range 57 West using the Bureau of Land Management's Public Lands Survey System.
Goshen, WY All lands except those located north of Township 27 North using the Bureau of Land Management's Public Lands Survey System.
Laramie, WY All lands except those located south of Township 14 North, and west of Range 64 West using the Bureau of Land Management's Public Lands Survey System.
Platte, WY All lands except those located north of Township 27 North using the Bureau of Land Management's Public Lands Survey System.
341st Missile Wing, Malmstrom Air Force Base Missile Field (Montana) Blaine, MT All lands except those located north of Township 24 North using the Bureau of Land Management's Public Lands Survey System.
Cascade, MT All.
Chouteau, MT All lands except those located north of Township 24 North, and east of Range 8 East using the Bureau of Land Management's Public Lands Survey System.
Fergus, MT All lands except those located east of Range 26 East using the Bureau of Land Management's Public Lands Survey System.
Glacier, MT All lands located south of Township 35 North, and east of Range 7 West, using the Bureau of Land Management's Public Lands Survey System.
Golden Valley, MT All lands except those located south of Township 11 North, and east of Range 20 East using the Bureau of Land Management's Public Lands Survey System.
Judith Basin, MT All.
Lewis and Clark, MT All lands except those located south of Township 14 North using the Bureau of Land Management's Public Lands Survey System.
Liberty, MT All lands except those located north of Township 31 North, and east of Range 5 East using the Bureau of Land Management's Public Lands Survey System.
Meagher, MT All lands except those located south of Township 12 North, and west of Range 9 East using the Bureau of Land Management's Public Lands Survey System.
Musselshell, MT All lands located north of Township 10 North, and west of Range 23 East using the Bureau of Land Management's Public Lands Survey System.
Petroleum, MT All lands located west of Range 27 East using the Bureau of Land Management's Public Lands Survey System.
Phillips, MT All lands located south of Township 23 North, and west of Range 25 East using the Bureau of Land Management's Public Lands Survey System.
Pondera, MT All lands except those located west of Range 9 West, using the Bureau of Land Management's Public Lands Survey System.
Stillwater, MT All lands located north of Township 3 North, and west of Range 20 East using the Bureau of Land Management's Public Lands Survey System.
Sweet Grass, MT All lands located north of Township 3 North, and east of Range 12 East using the Bureau of Land Management's Public Lands Survey System.
Teton, MT All lands except those located west of Range 10 West using the Bureau of Land Management's Public Lands Survey System.
Toole, MT All lands except those located north of Township 34 North using the Bureau of Land Management's Public Lands Survey System.
Wheatland, MT All.
91st Missile Wing, Minot Air Force Base Missile Field (North Dakota) Bottineau, ND All lands except those located east of Range 77 West using the Bureau of Land Management's Public Lands Survey System.
Burke, ND All lands except those located west of Range 93 West using the Bureau of Land Management's Public Lands Survey System.
Dunn, ND All lands located north of Township 148 North, using the Bureau of Land Management's Public Lands Survey System.
McHenry, ND All lands except those located north of Township 156 North, and east of Range 80 West using the Bureau of Land Management's Public Lands Survey System.
McKenzie, ND All lands located east of Range 95 West, using the Bureau of Land Management's Public Lands Survey System.
McLean, ND All lands except those located south of Township 145 North using the Bureau of Land Management's Public Lands Survey System.
Mercer, ND All lands located north of Township 145 North, east of Range 90 West, using the Bureau of Land Management's Public Lands Survey System.
Mountrail, ND All.
Pierce, ND All lands located south of Township 155 North, west of Range 72 West using the Bureau of Land Management's Public Lands Survey System.
Renville, ND All.
Sheridan, ND All lands except those located south of Township 148 North, and east of Range 78 West using the Bureau of Land Management's Public Lands Survey System.
Ward, ND All lands except those located north of Township 155 North, and east of Range 83 West using the Bureau of Land Management's Public Lands Survey System.
Williams, ND All lands located south of Township 158 North, and east of Range 96 West using the Bureau of Land Management's Public Lands Survey System.
Boston Range Complex Offshore Massachusetts, New Hampshire, Maine.
Boston Operating Area Offshore Massachusetts, New Hampshire, Maine.
Charleston Operating Area Offshore North Carolina, South Carolina.
Cherry Point Operating Area Offshore North Carolina, South Carolina.
Corpus Christi Operating Area Offshore Texas.
Eglin Gulf Test and Training Range Offshore Florida.
Gulf of Mexico Range Complex Offshore Mississippi, Alabama, Florida.
Hawaii Range Complex Offshore Hawaii.
Jacksonville Operating Area Offshore Florida, Georgia.
Jacksonville Range Complex Offshore Florida.
Key West Operating Area Offshore Florida.
Key West Range Complex Offshore Florida.
Narragansett Bay Range Complex Offshore Connecticut, Massachusetts, New York, Rhode Island.
Narragansett Bay Operating Area Offshore Connecticut, Massachusetts, New York, Rhode Island.
New Orleans Operating Area Offshore Louisiana.
Northern California Range Complex Offshore California.
Northwest Training Range Complex Offshore Oregon, Washington.
Panama City Operating Area Offshore Florida.
Pensacola Operating Area Offshore Alabama, Florida.
Point Mugu Sea Range Offshore California.
Southern California Range Complex Offshore California.
Virginia Capes Operating Area Offshore Delaware, Maryland, North Carolina, Virginia.
Virginia Capes Range Complex Offshore Delaware, Maryland, North Carolina, Virginia.