---
kind: "section"
citation: "41 C.F.R. § 105-55.014"
title: "41"
number: "105-55.014"
heading: "Liquidation of collateral."
url: "https://uscodex.org/cfr/41/105-55.014"
---

# §105-55.014. Liquidation of collateral.

- (a) The General Services Administration (GSA) will liquidate security or collateral through the exercise of a power of sale in the security instrument or a non-judicial 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 GSA learns a bankruptcy petition has been filed with respect to a debtor, the Agency will ascertain the impact of the Bankruptcy Code, including, but not limited to, [11 U.S.C. 362](/usc/11/362.md), to determine the applicability of the automatic stay and the procedures for obtaining relief from such stay prior to proceeding under [paragraph (a)](#a) of this section.

## Notes

### Authority

Authority: 5 U.S.C. 552-553; 31 U.S.C. 321, 3701, 3711, 3716, 3717, 3718, 3719, 3720B, 3720D; 31 CFR parts 900-904.

### Source

Source: 68 FR 68741, Dec. 10, 2003, unless otherwise noted.