10 U.S.C. § 8765 — Obsolete material and articles of historical interest: loan or gift

(a) Authority To Make Loans and Gifts. The Secretary of the Navy may lend or give away, at no cost to the government, the property described in (b), if the Navy no longer needs it, to any of these: (1) a state, commonwealth, U.S. possession, or one of their political subdivisions or municipalities; (2) the District of Columbia; (3) a library; (4) a historical society; (5) an educational institution whose graduates or students fought in a foreign war; (6) a servicemen's monument association; (7) a state museum; (8) a nonprofit museum or memorial used only for education; (9) a Veterans of Foreign Wars post; (10) an American Legion post; (11) any other recognized war veterans' association; or (12) a Sons of Veterans Reserve post. (b) Items Eligible for Disposal. This applies to: (1) captured, condemned, or obsolete ordnance material; and (2) captured, condemned, or obsolete combat or shipboard material. (c) Regulations. A loan or gift must follow regulations the Secretary sets, plus title 40, section 121. (d) Maintenance of the Records of the Government. Official government records, as defined in title 44, section 3301, cannot be given away under this section. (e) Alternative Authorities To Make Gifts or Loans. If both this section and section 2572 allow a gift or loan, the Secretary may use either one. (f) Authority To Transfer a Portion of a Vessel. The Secretary may lend, give, or otherwise transfer part of the hull or superstructure of a ship that has been struck from the Naval Vessel Register and marked for scrapping, to a qualifying organization listed in (a). The transfer agreement must require the recipient to keep the material in a condition that preserves its historical value and does not embarrass the Navy.