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Title 28, Judiciary and Judicial ProcedureRelease 119-110

§3007 Perishable Personal Property

Title 28 › PART VI — PARTICULAR PROCEEDINGS › CHAPTER 176 — FEDERAL DEBT COLLECTION PROCEDURE › SUBCHAPTER A — DEFINITIONS AND GENERAL PROVISIONS › § 3007

Last updated Sep 22, 2026|Official source

Summary

If a court finds that seized or held personal property is likely to spoil, be wasted or destroyed, or lose a lot of its value while a case is ongoing, the court must order a sale done in a commercially reasonable way. Within 5 days after the sale, the money must be given to the court clerk with a written statement signed by the United States marshal and filed in the case. The statement must say when and where the sale happened, who bought the item, how much was paid, and list the expenses. For the United States’ liability, the sale price is presumed to be the property’s fair market value.

Full Legal Text

Title 28, §3007

Judiciary and Judicial Procedure, Source: USLM XML via OLRC

(a)Authority To Sell.—
If at any time during any action or proceeding under this chapter the court determines on its own initiative or upon motion of any party, that any seized or detained personal property is likely to perish, waste, or be destroyed, or otherwise substantially depreciate in value during the pendency of the proceeding, the court shall order a commercially reasonable sale of such property.
(b)Deposit of Sale Proceeds.—
Within 5 days after such sale, the proceeds shall be deposited with the clerk of the court, accompanied by a statement in writing and signed by the United States marshal, to be filed in the action or proceeding, stating the time and place of sale, the name of the purchaser, the amount received, and an itemized account of expenses.
(c)Presumption.—
For purposes of liability on the part of the United States, there shall be a presumption that the price paid at a sale under subsection (a) is the fair market value of the property or portion.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 180 days after Nov. 29, 1990, and applicable with respect to certain actions for debts owed the United States pending in court on that

Effective Date

, see section 3631 of Pub. L. 101–647, set out as a note under section 3001 of this title.

Reference

Citations & Metadata

Citation

28 U.S.C. § 3007

Title 28, Judiciary and Judicial Procedure

Last Updated

Sep 22, 2026

Release point: 119-110