§ 907. — Acquisition of property pledged for loans; disposition; sale of pledged property by borrower.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC907]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER I--RURAL ELECTRIFICATION
Sec. 907. Acquisition of property pledged for loans;
disposition; sale of pledged property by borrower
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 sections 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.
(May 20, 1936, ch. 432, title I, Sec. 7, 49 Stat. 1365; Oct. 28, 1949,
ch. 776, Secs. 2, 4(f), 63 Stat. 948; Pub. L. 103-354, title II,
Sec. 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)
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.
Section Referred to in Other Sections
This section is referred to in section 932 of this title.
