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- Title 45. Public Welfare
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- Part 1177. Claims Collection
- Subpart B. Standards For the Administrative Collection of Claims
45 C.F.R. § 1177.15 Liquidation of Collateral
Library | Code of Federal Regulations |
Edition | 2023 |
Currency | Current through December 31, 2023 |
Citation | 45 C.F.R. § 1177.15 |
Year | 2023 |
(a) NEH will liquidate security or collateral through the exercise of a power of sale in the security instrument 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 best 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 NEH learns that a bankruptcy petition has been filed with respect to a debtor, the agency will seek legal advice from its Office of the General Counsel concerning the impact of the Bankruptcy Code...
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