# 7 CFR § 3.15: Liquidation of collateral

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-7-3.15

## Section

- **Citation:** 7 CFR § 3.15
- **Heading:** Liquidation of collateral
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 7—Agriculture > Subtitle A—Office of the Secretary of Agriculture > PART 3—DEBT MANAGEMENT > Subpart B—Standards for the Administrative Collection and Compromise of Claims

## Text

(a) In accordance with applicable laws and regulations, agencies may liquidate security or collateral through a sale or a nonjudicial foreclosure and apply the proceeds to the applicable debt(s), if the debtor fails to pay the debt(s) within a reasonable time after demand and if such action is in the interest of the United States. Collection from other sources, including liquidation of security or collateral, is not a prerequisite to requiring payment by a surety, insurer, or guarantor unless such action is expressly required by statute or contract.
(b) When an agency learns that a bankruptcy petition has been filed with respect to a debtor, the agency may request legal advice from OGC concerning the impact of the Bankruptcy Code, including, but not limited to, 11 U.S.C. 362, to determine the applicability of the automatic stay and the procedures for obtaining relief from such stay prior to proceeding under paragraph (a) of this section.

## Nearby sections

- [7 CFR § 3.1 § 3.1 Purpose and scope.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.1.md)
- [7 CFR § 3.2 § 3.2 Authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.2.md)
- [7 CFR § 3.3 § 3.3 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.3.md)
- [7 CFR § 3.4 § 3.4 Delegations of authority.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.4.md)
- [7 CFR § 3.10 § 3.10 Aggressive agency collection activity.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.10.md)
- [7 CFR § 3.11 § 3.11 Demand for payment.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.11.md)
- [7 CFR § 3.12 § 3.12 Reporting of debts to Credit Reporting Agencies.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.12.md)
- [7 CFR § 3.14 § 3.14 Suspension or revocation of eligibility for loans and loan guarantees, licenses, permits, or privileges.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.14.md)
- [7 CFR § 3.15 § 3.15 Liquidation of collateral.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.15.md)
- [7 CFR § 3.16 § 3.16 Collection in installments.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.16.md)
- [7 CFR § 3.17 § 3.17 Interest, penalties, and administrative costs.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.17.md)
- [7 CFR § 3.18 § 3.18 Use and disclosure of mailing addresses.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.18.md)
- [7 CFR § 3.19 § 3.19 Standards for the compromise of claims and debt settlement.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.19.md)
- [7 CFR § 3.20 § 3.20 Standards for suspending or terminating collection activities.](https://www.frixlaw.com/law-library/statutes/ecfr-7-3.20.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-7-3.15. Check the current official text before relying on it. Not legal advice.