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§ 3760. —  Conduct of sale; adjournment.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC3760]

 
                       TITLE 12--BANKS AND BANKING
 
             CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
 
Sec. 3760. Conduct of sale; adjournment


(a) In general

                         (1) Manner and time

        A foreclosure sale pursuant to this chapter shall be held at 
    public auction and shall be scheduled to begin between the hours of 
    9 o'clock ante meridian and 4 o'clock post meridian local time.

                            (2) Location

        The foreclosure sale shall be held at a location specified in 
    the notice of default and foreclosure sale and such location shall 
    be at a place where foreclosure real estate auctions are customarily 
    held in the county or counties in which the property to be sold is 
    located, or at a courthouse therein, or at or on the property to be 
    sold. Sale of security property situated in two or more counties may 
    be held in any 1 of the counties in which any part of the security 
    property is situated.

                   (3) Sale of multiple properties

        The foreclosure commissioner may designate the order in which 
    multiple security properties are sold.

(b) Duties of foreclosure commissioner

                         (1) Conduct of sale

        (A) In general

            The foreclosure commissioner shall conduct the foreclosure 
        sale in accordance with the provisions of this chapter and in a 
        manner fair to both the mortgagor and the Secretary.

        (B) Written bids

            Written one-price sealed bids shall be accepted by the 
        foreclosure commissioner from the Secretary and other persons 
        for entry by announcement by the foreclosure commissioner at the 
        sale.

        (C) Auctioneer

            The foreclosure commissioner may serve as auctioneer, or, in 
        accordance with regulations of the Secretary, may employ an 
        auctioneer to be paid from the commission provided for in 
        section 3761(5) of this title.

                      (2) Eligible participants

        (A) In general

            The Secretary, and any other person who has submitted a 
        written one-price bid, may bid at the foreclosure sale.

        (B) Prohibited participants

            The foreclosure commissioner or any relative, related 
        business entity, or employee of the foreclosure commissioner or 
        a related business entity shall not be permitted to bid in any 
        manner on the security property subject to foreclosure sale, 
        except that the foreclosure commissioner or an auctioneer may be 
        directed by the Secretary to enter a bid on the Secretary's 
        behalf.

(c) Adjournment or cancellation of sale

                        (1) General authority

        The foreclosure commissioner may, before or at the time of the 
    foreclosure sale, adjourn or cancel the foreclosure sale if the 
    commissioner determines, in the commissioner's discretion, that--
            (A) circumstances are not conducive to a sale which is fair 
        to the mortgagor and the Secretary; or
            (B) additional time is necessary to determine whether the 
        security property should be withdrawn from foreclosure, as 
        provided in section 3759 of this title.

                (2) Adjournment to same or later day

        The foreclosure commissioner may adjourn a foreclosure sale to a 
    later hour the same day by announcing or posting the new time and 
    place of the foreclosure sale, or may adjourn the foreclosure sale 
    for not less than 9 and not more than 31 days, in which case the 
    commissioner shall serve a notice of default and foreclosure sale 
    revised to recite the fact that the foreclosure sale has been 
    adjourned to a specified date, as well as any other information the 
    foreclosure commissioner deems appropriate. Such notice shall be 
    served by publication and mailing in accordance with section 3758 of 
    this title, except that publication may be made on any of 3 separate 
    days before the revised date of foreclosure sale, and mailing may be 
    made at any time not less than 7 days before the date to which the 
    foreclosure sale has been adjourned.

(d) Cash deposits

    The foreclosure commissioner may require a bidder to make a cash 
deposit in an amount or percentage set by the foreclosure commissioner 
and stated in the notice of foreclosure sale before the bid is accepted. 
A successful bidder at the foreclosure sale who fails to comply with the 
terms of the sale may be required to forfeit the cash deposit or, at the 
election of the foreclosure commissioner after consultation with the 
Secretary, shall be liable to the Secretary for any costs incurred as a 
result of such failure.

(e) Presumption of validity of sale

    Any foreclosure sale held in accordance with this chapter shall be 
conclusively presumed to have been conducted in a legal, fair, and 
reasonable manner. The sale price shall be conclusively presumed to be 
reasonable and equal to the fair market value of the property.

(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)

                          Codification

    Section is based on section 811 of title VIII of S. 2281, One 
Hundred Third Congress, as reported July 13, 1994, which was enacted 
into law by Pub. L. 103-327.

                  Section Referred to in Other Sections

    This section is referred to in sections 3756, 3759, 3761, 3764 of 
this title.



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