---
kind: "section"
citation: "45 C.F.R. § 30.16"
title: "45"
number: "30.16"
heading: "Liquidation of collateral."
url: "https://uscodex.org/cfr/45/30.16"
---

# §30.16. Liquidation of collateral.

- (a)
  - (1) The Secretary 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 interests of the United States.
  - (2) 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.
  - (3) The Secretary will give the debtor reasonable notice of the sale and an accounting of any surplus proceeds and will comply with other requirements under law or contract.
- (b) Where there is reason to believe that a bankruptcy petition has been filed with respect to a debtor, the Office of the General Counsel should be contacted for legal advice concerning the impact of the Bankruptcy Code, particularly with respect to the applicability of the automatic stay, [11 U.S.C. 362](/usc/11/362.md), and the procedures for obtaining relief from such stay prior to proceeding under [paragraph (a)](#a) of this section.

## Notes

### Authority

Authority: 31 U.S.C. 3711(d).

### Source

Source: 72 FR 10409, Mar. 8, 2007, unless otherwise noted.