Sale of vessel stricken from Naval Vessel Register

§ 7305. Sale of vessel stricken from Naval Vessel Register (a) This section does not apply to a vessel the disposal of which is authorized by the Federal Property and Administrative Services Act of 1949, as amended (40 U. S. C. 471 et seq.), if it is to be disposed of under that Act. (b) The Secretary of the Navy shall appraise each vessel stricken from the Naval Vessel Register under section 7304 of this title. If he considers that the sale of the vessel is in the best interest of the United States, he shall advertise it for sale. (c) The advertisement shall ask for sealed bids for the purchase of the vessel and shall be published for at least three months in newspapers used by the Department of the Navy for other advertisements. It shall— (1) state the name, location, and appraised value of the vessel to be sold; 452 (2) state the day, hour, and place for the opening of the bids; (3) state that the sale will be for cash to the bidder submitting the highest bid above the appraised value of the vessel; and (4) specify the period of time, after the opening of the bids, within which the successful bidder will be required to pay the remaining 90 percent of the amount bid by him. (d) The Secretary shall— (1) require that each bid be accompanied by a cash deposit of not less than 10 percent of the amount of the bid; and (2) require that each bid be accompanied by a bond, with two or more sureties to be approved by him, conditioned on the payment of the remaining 90 percent within the time specified in the advertisement. (e) The bids shall be opened at the time and place stated in the advertisement, and a record shall be made of them. (f) If the bidder whose bid is accepted defaults in the payment of all or part of the remaining 90 percent of the amount of his bid within the time specified, his cash deposit of 10 percent of that amount shall be forfeited to the United States and the Secretary shall advertise the vessel again and resell it in the manner prescribed in this section. (g) The cash deposit forfeited by a defaulting bidder shall be applied, first, to the payment of the expenses of the advertisement and resale of the vessel and, second, to the payment of the difference, if any, between the amount bid by the defaulting bidder and the amount for which the vessel is resold. Any balance remaining shall be covered into the Treasury. (h) This section does not prevent a suit for breach of any condition of a bond furnished by a bidder. (i) Each vessel sold as prescribed in this section shall be delivered to the purchaser upon full payment to the Secretary of the amount bid. (j) The net proceeds of each sale under this section shall be covered into the Treasury. (k) A sale under this section of a vessel the disposal of which is authorized by the Federal Property and Administrative Services Act of 1949, as amended (40 U. S. C. 471 et seq.), is subject to regulations under section 205 of that Act (40 U. S. C. 486). (l) Except as otherwise provided by law, no vessel of the Navy may be sold in any other manner than that provided by this section, or for less than its appraised value, unless the President so directs in writing.