---
kind: "section"
citation: "2 C.F.R. § 1138.505"
title: "2"
number: "1138.505"
heading: "Title to property under subawards."
url: "https://uscodex.org/cfr/2/1138.505"
---

# §1138.505. Title to property under subawards.

- (a) **Requirement.** A DoD Component's general terms and conditions must specify requirements related to title to property under subawards.
- (b) **Award terms and conditions—**
  - (1) **General.** A DoD Component's general terms and conditions must use the wording appendix E to this part provides as Section B of SUB Article V to specify the requirements concerning title to property that recipients must include in their subawards.
  - (2) **Exception.** If a DoD Component has the necessary statutory authority to do so and includes provisions in paragraph A.2 of PROP Article I to identify any property acquired under the award as exempt property, as described in [2 CFR 1130.105](/cfr/2/1130.105.md), the DoD Component may at its option insert wording in paragraph B.1.b of SUB Article V to allow recipients to pass through those provisions to subrecipients.
    - (i) It is critical, however, that the DoD Component ensures that the wording of paragraph B.1.b is consistent with the statutory authority.
    - (ii) For example, if the statutory authority is [31 U.S.C. 6306](/usc/31/6306.md)—as described in [2 CFR 1130.105(b)(2)(i)](/cfr/2/1130.105.md?p=b-2-i)—the wording of paragraph B.1.b of SUB Article V may permit a recipient to flow down the substance of the exempt property provision in paragraph A.2 of PROP Article I only to a subrecipient that is a nonprofit institution of higher education or nonprofit organization whose primary purpose is conducting scientific research.

## Notes

### Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

### Source

Source: 85 FR 51171, Aug. 19, 2020, unless otherwise noted.