---
kind: "section"
citation: "7 C.F.R. § 1955.11"
title: "7"
number: "1955.11"
heading: "Conveyance of property to Rural Development by trustee in bankruptcy."
url: "https://uscodex.org/cfr/7/1955.11"
---

# §1955.11. Conveyance of property to Rural Development by trustee in bankruptcy.

- (a) **Authority.** With the advice of OGC (and prior approval of the National Office for MFH, Community Programs, and insured B&I loans), the State Director within his/her authority is authorized to accept a conveyance of property to the Government by the Trustee in Bankruptcy, provided:
  - (1) The Bankruptcy Court has approved the conveyance;
  - (2) The conveyance will permit a substantial recovery on the Rural Development debt; and
  - (3) Rural Development will acquire title free of all liens and encumbrances except Rural Development iens.
- (b) **Fees and deed.**
  - (1) Rural Development may pay any necessary and proper fees approved by the bankruptcy court in connection with the conveyance. Before paying a fee to a trustee for a Trustee's Deed in excess of $300 for any loan type(s) other than Farmer Programs or $1,000 for Farmer Program loans, prior approval of the Administrator must be obtained. The State Director will process the necessary documents as outlined in [§ 1955.5(d)](/cfr/7/1955.5.md?p=d) of this subpart for payment of fees as recoverable costs.
  - (2) Conveyance may be by Trustee's Deed instead of a warranty deed. If upon advice of OGC it is determined a deed from any other person or entity (including the borrower) is necessary to obtain clear title, a deed from such person or entity will be obtained.
- (c) **Acceptance.** The conveyance will be accepted for an amount of credit to the borrower's Rural Development account(s) as set forth in [§ 1955.18(e)(4)](/cfr/7/1955.18.md?p=e-4) of this subpart.
- (d) **Reporting.** Acquisition of property under this section will be reported in accordance with [§ 1955.18(a)](/cfr/7/1955.18.md?p=a) of this subpart.

## Notes

### Amendments

[50 FR 23904, June 7, 1985, as amended at 53 FR 27827, July 25, 1988]

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

### Source

Source: 50 FR 23904, June 7, 1985, unless otherwise noted.

### Amendments

[50 FR 23904, June 7, 1985, as amended at 53 FR 27827, July 25, 1988]