# 7 U.S.C. § 907: Acquisition of property pledged for loans; disposition; sale of pledged property by borrower

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t7_s907

## Section

- **Citation:** 7 U.S.C. § 907
- **Heading:** Acquisition of property pledged for loans; disposition; sale of pledged property by borrower
- **Jurisdiction:** Federal
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** September 9, 2026
- **Source:** Publisher's official text
- **Location:** Title 7—AGRICULTURE > CHAPTER 31—RURAL ELECTRIFICATION AND TELEPHONE SERVICE > SUBCHAPTER I—RURAL ELECTRIFICATION

## Text

The Secretary is authorized and empowered to bid for and purchase at any foreclosure or other sale, or otherwise to acquire, property pledged or mortgaged to secure any loan made pursuant to this chapter; to pay the purchase price and any costs and expenses incurred in connection therewith from the sums authorized in section 903 of this title ; to accept title to any property so purchased or acquired in the name of the United States of America; to operate or lease such property for such period as may be deemed necessary or advisable to protect the investment therein, but not to exceed five years after the acquisition thereof; and to sell such property so purchased or acquired, upon such terms and for such consideration as the Secretary shall determine to be reasonable.

No borrower of funds under sections 904 or 922 of this title shall, without the approval of the Secretary, sell or dispose of its property, rights, or franchises, acquired under the provisions of this chapter, until any loan obtained from the Rural Electrification Administration, including all interest and charges, shall have been repaid.

( May 20, 1936, ch. 432 , title I, § 7, 49 Stat. 1365 ; Oct. 28, 1949, ch. 776 , §§ 2, 4(f), 63 Stat. 948 ; Pub. L. 103–354, title II, § 235(a)(13) , Oct. 13, 1994 , 108 Stat. 3221 .)

## Nearby sections

- [7 U.S.C. § 901 Short title](https://www.frixlaw.com/law-library/statutes/usc_t7_s901.md)
- [7 U.S.C. § 902 General authority of Secretary of Agriculture](https://www.frixlaw.com/law-library/statutes/usc_t7_s902.md)
- [7 U.S.C. § 903 Authorization of appropriations](https://www.frixlaw.com/law-library/statutes/usc_t7_s903.md)
- [7 U.S.C. § 904 Loans for electrical plants and transmission lines](https://www.frixlaw.com/law-library/statutes/usc_t7_s904.md)
- [7 U.S.C. § 905 Fees for certain loan guarantees](https://www.frixlaw.com/law-library/statutes/usc_t7_s905.md)
- [7 U.S.C. § 906 Funding for administrative expenses](https://www.frixlaw.com/law-library/statutes/usc_t7_s906.md)
- [7 U.S.C. § 906a Use of funds outside the United States or its territories prohibited](https://www.frixlaw.com/law-library/statutes/usc_t7_s906a.md)
- [7 U.S.C. § 907 Acquisition of property pledged for loans; disposition; sale of pledged property by borrower](https://www.frixlaw.com/law-library/statutes/usc_t7_s907.md)
- [7 U.S.C. § 908 Limitations on use of assistance](https://www.frixlaw.com/law-library/statutes/usc_t7_s908.md)
- [7 U.S.C. § 909 Administration on nonpolitical basis; dismissal of officers or employees for violating provision](https://www.frixlaw.com/law-library/statutes/usc_t7_s909.md)
- [7 U.S.C. § 910 Repealed. Pub. L. 104–127, title VII, § 777 , Apr. 4, 1996 , 110 Stat. 1150](https://www.frixlaw.com/law-library/statutes/usc_t7_s910.md)
- [7 U.S.C. § 911 Acceptance of services of Federal or State officers; application of civil service laws; expenditures for supplies and equipment](https://www.frixlaw.com/law-library/statutes/usc_t7_s911.md)
- [7 U.S.C. § 911a Repealed. Pub. L. 103–354, title II, § 235(a)(5) , Oct. 13, 1994 , 108 Stat. 3221](https://www.frixlaw.com/law-library/statutes/usc_t7_s911a.md)
- [7 U.S.C. § 912 Extension of time for repayment of loans](https://www.frixlaw.com/law-library/statutes/usc_t7_s912.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t7_s907. Check the current official text before relying on it. Not legal advice.