# 7 CFR § 1955.5: General actions > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.5 ## Section - **Citation:** 7 CFR § 1955.5 - **Heading:** General actions - **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) Assignment of notes to Rural Development. When liquidation action is approved and the insured note is not held in the County or District Office, the approval official will request the Finance Office to purchase the note and forward it to the appropriate office. Voluntary conveyance may be closed pending receipt of the note(s), and foreclosure may also be processed pending receipt of the note(s), unless the original note is required in connection with the foreclosure action. (b) Execution of documents. (1) After liquidation of loans to individuals has been approved by the appropriate official, the County Supervisor is authorized to execute all necessary forms and documents except notices of acceleration required to complete transactions covered by this subpart. (2) After liquidation of loans to organizations has been approved by the appropriate official, the District Director is authorized to execute all forms and documents for completion of the liquidation except: (i) Notice of acceleration; or (ii) Other form or document which specifically required State or National Office approval because of monetary limits or policy statement established elsewhere in this subpart. (c) Unused loan funds. (1) Funds remaining in a supervised bank account will be handed in accordance with § 1902.15 of subpart A of part 1902 of this chapter before a voluntary conveyance or foreclosure is processed. (2) Funds remaining in a construction or other account will be applied to the borrower's Rural Development accounts. (d) Payment of costs. Costs related to liquidation of a loan or acquisition of property will be paid according to RD Instruction 2024-A as either a recoverable or nonrecoverable cost as defined in § 1955.3 of this subpart. (e) Escrow funds. Any funds remaining in the borrower's escrow account at the time of liquidation by voluntary conveyance or foreclosure are nonrefundable and will be credited to the borrower's loan account. [50 FR 23904, June 7, 1985, as amended at 56 FR 6953, Feb. 21, 1991, 57 FR 36590, Aug. 14, 1992] ## 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) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.5. Check the current official text before relying on it. Not legal advice.