# 7 CFR § 1955.11: Conveyance of property to Rural Development by trustee in bankruptcy

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.11

## Section

- **Citation:** 7 CFR § 1955.11
- **Heading:** Conveyance of property to Rural Development by trustee in bankruptcy
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 7—Agriculture > Subtitle B—Regulations of the Department of Agriculture > CHAPTER XVIII—RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE > SUBCHAPTER H—PROGRAM REGULATIONS > PART 1955—PROPERTY MANAGEMENT > Subpart A—Liquidation of Loans Secured by Real Estate and Acquisition of Real and Chattel Property

## Text

(a) Authority. With the advice of OGC (and prior approval of the National Office for MFH, Community Programs, and insured B&I loans), the State Director within his/her authority is authorized to accept a conveyance of property to the Government by the Trustee in Bankruptcy, provided:
(1) The Bankruptcy Court has approved the conveyance;
(2) The conveyance will permit a substantial recovery on the Rural Development debt; and
(3) Rural Development will acquire title free of all liens and encumbrances except Rural Development iens.
(b) Fees and deed. (1) Rural Development may pay any necessary and proper fees approved by the bankruptcy court in connection with the conveyance. Before paying a fee to a trustee for a Trustee's Deed in excess of $300 for any loan type(s) other than Farmer Programs or $1,000 for Farmer Program loans, prior approval of the Administrator must be obtained. The State Director will process the necessary documents as outlined in § 1955.5(d) of this subpart for payment of fees as recoverable costs.
(2) Conveyance may be by Trustee's Deed instead of a warranty deed. If upon advice of OGC it is determined a deed from any other person or entity (including the borrower) is necessary to obtain clear title, a deed from such person or entity will be obtained.
(c) Acceptance. The conveyance will be accepted for an amount of credit to the borrower's Rural Development account(s) as set forth in § 1955.18(e)(4) of this subpart.
(d) Reporting. Acquisition of property under this section will be reported in accordance with § 1955.18(a) of this subpart.
[50 FR 23904, June 7, 1985, as amended at 53 FR 27827, July 25, 1988]

## Nearby sections

- [7 CFR § 1955.1 § 1955.1 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.1.md)
- [7 CFR § 1955.2 § 1955.2 Policy.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.2.md)
- [7 CFR § 1955.3 § 1955.3 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.3.md)
- [7 CFR § 1955.4 § 1955.4 Redelegation of authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.4.md)
- [7 CFR § 1955.5 § 1955.5 General actions.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.5.md)
- [7 CFR § 1955.9 § 1955.9 Requirements for voluntary conveyance of real property located within a federally recognized Indian reservation owned by a Native American borrower-owner.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.9.md)
- [7 CFR § 1955.10 § 1955.10 Voluntary conveyance of real property by the borrower to the Government.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.10.md)
- [7 CFR § 1955.11 § 1955.11 Conveyance of property to Rural Development by trustee in bankruptcy.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.11.md)
- [7 CFR § 1955.12 § 1955.12 Acquisition of property which served as security for a loan guarantee by Rural Development or at sale by another lienholder, bankruptcy trustee, or taxing authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.12.md)
- [7 CFR § 1955.13 § 1955.13 Acquisition of property by exercise of Government redemption rights.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.13.md)
- [7 CFR § 1955.15 § 1955.15 Foreclosure by the Government of loans secured by real estate.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.15.md)
- [7 CFR § 1955.18 § 1955.18 Actions required after acquisition of property.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.18.md)
- [7 CFR § 1955.20 § 1955.20 Acquisition of chattel property.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.20.md)
- [7 CFR § 1955.21 § 1955.21 Exception authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.21.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.11. Check the current official text before relying on it. Not legal advice.