46 U.S.C. § 53725: Actions against obligor

Summary

If a borrower defaults on a guaranteed loan, the Secretary or Administrator can take steps needed to protect the U.S. Government. They may bring a civil lawsuit in the name of the United States or the lender. The lender must give the government all records and evidence needed for the case. The Secretary or Administrator may accept title and possession of property from the borrower or buy the property for no more than the unpaid principal and interest. If selling the property brings in more cash than the unpaid principal, unpaid interest, and collection costs, the extra money must be returned to the borrower.

Title 46, §53725

Shipping, Source: USLM XML via OLRC

(a)In General.—

For a default under a guaranteed obligation or related agreement, the Secretary or Administrator may take any action against the obligor or another liable party that the Secretary or Administrator considers necessary to protect the interests of the United States Government. A civil action may be brought in the name of the United States or the obligee. The obligee shall make available to the Government all records and evidence necessary to prosecute the action.

(b)Title, Possession, and Purchase.—

(1)In general.—

The Secretary or Administrator may—

(A)accept a conveyance of title to and possession of property from the obligor or another party liable to the Secretary or Administrator; and

(B)purchase the property for an amount not greater than the unpaid principal amount of the obligation and interest thereon.

(2)Payment of excess.—

If, through the sale of property, the Secretary or Administrator receives an amount of cash greater than the unpaid principal amount of the obligation, the unpaid interest on the obligation, and the expenses of collecting those amounts, the Secretary or Administrator shall pay the excess to the obligor.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5372546 App.:1275(e).June 29, 1936, ch. 858, title XI, § 1105(e), as added June 23, 1938, ch. 600, § 46, 52 Stat. 971; Aug. 15, 1953, ch. 513, § 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 5, 68 Stat. 1272; Aug. 7, 1956, ch. 1026, § 1(e)–(g), 70 Stat. 1087; Pub. L. 85–520, July 15, 1958, 72 Stat. 358; Pub. L. 91–469, § 33, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 915; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(11), Oct. 30, 1984, 98 Stat. 3131. In subsection (a), the words “may take any action” are substituted for “shall take such action . . . that, in his discretion, may be required” for clarity and to eliminate unnecessary words.

Editorial Notes

Amendments

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(F). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(F), into this section by inserting “or Administrator” after “Secretary” wherever appearing. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and

Construction

note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(F), which directed the amendment of section 1275(e) of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and

Historical and Revision Notes

above.

§53725 Actions Against Obligor

Summary

Title 46, §53725

Notes & Related Subsidiaries

Historical and Revision Notes

Editorial Notes

Amendments

Construction

Historical and Revision Notes

Citations & Metadata