---
kind: "section"
citation: "7 C.F.R. § 3.15"
title: "7"
number: "3.15"
heading: "Liquidation of collateral."
url: "https://uscodex.org/cfr/7/3.15"
---

# §3.15. Liquidation of collateral.

- (a) In accordance with applicable laws and regulations, agencies may liquidate security or collateral through a sale or a nonjudicial 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 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 an agency learns that a bankruptcy petition has been filed with respect to a debtor, the agency may request legal advice from OGC concerning 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. 301; 7 U.S.C. 1506, 1981, 1981a, 1981d, and 2008h; 15 U.S.C. 714b; 31 U.S.C. 3701, 3711, 3716-18, and 3720B; and 31 CFR parts 285 and 901-904.

### Source

Source: 85 FR 36672, June 17, 2020, unless otherwise noted.