Acquisition of chattel property.

CFR · 2024-01-01 · US · Title 7

Every effort will be made to avoid acquiring chattel property by having the borrower or Rural Development liquidate the property according to subpart A of part 1962 of this chapter and apply the proceeds to the borrower's account(s). Methods of acquisition authorized are: (a) (2) Rural Development foreclosure sale conducted by the U.S. Marshal or sheriff in States where a State Supplement provides for sales to be conducted by them. (3) Sale by trustee in bankruptcy. (4) Public sale by prior lienholder. (5) Public sale conducted under the terms of Form RD 455-4, “Agreement for Voluntary Liquidation of Chattel Security,” the power of sale in security agreements or crop and chattel mortgage, or similar instrument, if authorized by State Supplement. (b) (1) (2) (3) (4) (c) (1) Attend all sales described in paragraph (a)(5) of this section unless an exception is authorized by the State Director because of physical danger to the Rural Development employee or adverse publicity would be likely. (2) Attend public sales by prior lienholders when the market value of the chattel property is significantly more than the amount of the prior lien(s). (3) Obtain the advice of the State Director on attending sales described in paragraphs (a) (1), (2), and (3) of this section. (d) (e) (f) (i) The market value of the item(s) less the estimated costs involved in the acquisition, care, and sale of the item(s) of security; or (ii) The unpaid balance of the borrower's secured Rural Development debt

official document · source cfr-2024 · id 7:§ 1955.20