[Code of Federal Regulations]
[Title 15, Volume 1]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR21.17]

[Page 203-204]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
PART 21--ADMINISTRATIVE OFFSET--Table of Contents
 
Sec. 21.17  Liquidation of collateral.

    If the Department holds security or collateral which may be 
liquidated through the exercise of a power of sale in the security 
instrument, or a nonjudicial foreclosure, liquidation should be 
accomplished by such procedures if the debtor fails to pay the debt 
within a reasonable time after demand or pursuant to the contract of the 
parties, unless the cost of disposing of the collateral would be 
disproportionate to its value or special circumstances require judicial 
foreclosure. The Department collection official should provide the 
debtor with reasonable notice of the

[[Page 204]]

sale, an accounting of any surplus proceeds, and any other procedures 
required by contract or law. Collection from other sources, including 
liquidation of security or collateral, is not a prerequisite to 
requiring payment by a surety or insurance concern unless such action is 
expressly required by statute or contract.