---
kind: "section"
citation: "40 U.S.C. § 705"
title: "40"
title_heading: "Public Buildings, Property, and Works"
number: "705"
heading: "Handling of proceeds from disposal"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/40/705"
units:
  - "Subtitle I — Federal Property and Administrative Services"
  - "Chapter 7 — Foreign Excess Property"
---

# §705. Handling of proceeds from disposal

- (a) **In General.—** This section applies to proceeds from the sale, lease, or other disposition of [foreign excess property](/usc/40/102.md?p=6) under this chapter.
- (b) **Foreign Currencies or Credits.—** Proceeds in the form of foreign currencies or credits, must be administered in accordance with procedures that the Secretary of the Treasury may establish.
- (c) **United States Currency.—**
  - (1) **Separate fund in treasury.—** [Section 572(a) of this title](/usc/40/572.md?p=a) applies to proceeds of [foreign excess property](/usc/40/102.md?p=6) disposed of for United States currency under this chapter.
  - (2) **Deposited in treasury as miscellaneous receipts.—** Except as provided in [paragraph (1)](#c-1), proceeds in the form of United States currency, including foreign currencies or credits that are reduced to United States currency, must be deposited in the Treasury as miscellaneous receipts.
- (d) **Special Account for Refunds or Payments for Breach.—**
  - (1) **Deposits.—** A [federal agency](/usc/40/102.md?p=5) that disposes of [foreign excess property](/usc/40/102.md?p=6) under this chapter may deposit, in a special account in the Treasury, amounts of the proceeds of the dispositions that the agency decides are necessary to permit—
    - (A) appropriate refunds to purchasers for dispositions that are rescinded or that do not become final; and
    - (B) payments for breach of warranty.
  - (2) **Withdrawals.—** A [federal agency](/usc/40/102.md?p=5) that deposits proceeds in a special account under [paragraph (1)](#d-1) may withdraw amounts to be refunded or paid from the account without regard to the origin of the amounts withdrawn.

## Source credit

(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1127.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 705 | 40:513. | June 30, 1949, ch. 288, title IV, § 403, 63 Stat. 398. |

In subsection (d)(1), the words “in the Treasury” are substituted for “with the Treasurer of the United States” because of section 1 of Reorganization Plan No. 26 of 1950 (eff. July 31, 1950, 64 Stat. 1280), restated as section 321 of title 31.