§907 — Title 7 Agriculture | U.S. Code

Summary

The Secretary can buy or otherwise take property that was used as collateral for loans under this chapter. The Secretary may pay the purchase price and costs from the funds in section 903, accept title in the name of the United States of America, operate or lease the property to protect the investment for up to five years after acquisition, and later sell it on terms and for a price the Secretary finds reasonable. Borrowers under sections 904 or 922 may not sell or transfer property, rights, or franchises they acquired under this chapter without the Secretary’s approval until any loan from the Rural Electrification Administration, with all interest and charges, is repaid.

Title 7, §907

Agriculture — Source: USLM XML via OLRC

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 section 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.

Editorial Notes

Amendments

1994—Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing. 1949—Act Oct. 28, 1949, inserted “or section 922” after “904” in second par., and inserted “title I,” in credit of act May 20, 1936.

§907 Acquisition of property pledged for loans; disposition; sale of pledged property by borrower

Summary

Title 7, §907

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata