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Title 7 — AgricultureRelease 119-73not60

§907 Acquisition of Property Pledged for Loans; Disposition; Sale of Pledged Property by Borrower

Title 7 › Chapter 31— RURAL ELECTRIFICATION AND TELEPHONE SERVICE › Subchapter I— RURAL ELECTRIFICATION › § 907

Last updated Apr 3, 2026|Official source

Summary

The Secretary may buy or otherwise take control of property that was pledged as loan security, including buying it at a foreclosure or other sale. The Secretary can pay the cost from funds under section 903, accept title in the name of the United States, operate or lease the property to protect the investment for up to five years, and later sell it on terms the Secretary finds reasonable. A borrower that got funds under sections 904 or 922 may not sell or give away property, rights, or franchises acquired under this chapter without the Secretary’s approval until any loan from the Rural Electrification Administration, with all interest and charges, is fully repaid.

Full Legal Text

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.

Legislative History

Notes & Related Subsidiaries

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.

Reference

Citations & Metadata

Citation

7 U.S.C. § 907

Title 7 — Agriculture

Last Updated

Apr 3, 2026

Release point: 119-73not60