[Code of Federal Regulations]
[Title 8, Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 8CFR274.16]

[Page 635-636]
 
                     TITLE 8--ALIENS AND NATIONALITY
 
      CHAPTER I--DEPARTMENT OF HOMELAND SECURITY (IMMIGRATION AND 
                             NATURALIZATION)
 
PART 274_SEIZURE AND FORFEITURE OF CONVEYANCES--Table of Contents
 
Sec.  274.16  Mitigation.

    (a) The regional commissioner may grant mitigation of forfeiture of 
a seized conveyance to a petitioner, including a violator. To be 
eligible for the relief of mitigation of forfeiture, a petitioner must 
establish that transfer of ownership of the forfeited conveyance to the 
petitioner promotes the interests of justice and does not diminish the 
deterrent effect of section 274(b) of the Act.
    (b) A grant of mitigation of forfeiture shall be in the form of a 
monetary penalty imposed upon the petitioner in addition to any other 
amounts chargeable as a condition to the grant of the relief of 
remission of forfeiture. This penalty is considered as an item of cost 
payable by the petitioner.
    (c) Mitigation of forfeiture can only be granted after a seized 
conveyance has been declared forfeited.

[[Page 636]]

    (d) A grant of mitigation of forfeiture must be conditioned upon:
    (1) Execution of an instrument by the petitioner holding the United 
States, its agents and employees, harmless from all claims which may 
result from the grant of mitigation of forfeiture;
    (2) Execution of an agreement that no property interest in the 
conveyance will be transferred to any violator, or any other violator if 
the petitioner is a violator; and
    (3) Any other terms or conditions as the regional commissioner 
determines to be appropriate, including a provision for liquidated 
damages to guarantee compliance with any provisions of the agreement or 
terms and conditions of the mitigation of forfeiture.
    (e) The following provisions apply only to an owner-petitioner that 
is granted mitigation of forfeiture:
    (1) Within 20 days after receipt of the determination, that owner-
petitioner shall comply with the conditions of mitigation and take 
possession of the forfeited conveyance; and
    (2) If that owner-petitioner does not comply with the provisions of 
paragraph (e)(1) of this section, the forfeited conveyance shall be 
placed in official use, sold, or otherwise disposed of by the custodian 
under Sec.  274.3 of this part. The proceeds of a sale of the forfeited 
conveyance shall be applied first to all costs and expenses of the 
seizure, forfeiture, and sale and any remaining balance shall be paid to 
that owner-petitioner. If the forfeited conveyance is placed in official 
use or otherwise disposed of, that owner-petitioner shall be paid an 
amount equal to the appraised value of the conveyance minus all costs 
and expenses of the seizure, forfeiture, and disposal.
    (f) The following provisions apply only to a lienholder-petitioner 
that is granted mitigation of forfeiture:
    (1) That lienholder-petitioner shall receive payment of the net 
equity of that lienholder-petitioner, if the forfeited conveyance is 
retained for official use; or either possession of the forfeited 
conveyance, or a monetary amount not to exceed the net equity of that 
lienholder-petitioner from the sale of the forfeited conveyance;
    (2) Within 20 days after receipt of the determination, that 
lienholder-petitioner shall comply with the conditions of mitigation and 
take possession of the forfeited conveyance; and
    (3) If the lienholder-petitioner does not comply with the provisions 
of paragraph (f)(2) of this section, the forfeited conveyance shall be 
placed in official use, sold, or otherwise disposed of by the custodian 
as provided in Sec.  274.3 of this part. The proceeds of a sale shall be 
applied first to all costs and expenses of the seizure, forfeiture, and 
sale and any remaining balance not exceeding the net equity of that 
lienholder-petitioner shall be paid to that lienholder-petitioner. If 
the forfeited conveyance is placed in official use or otherwise disposed 
of, that lienholder-petitioner shall be paid the net equity of that 
lienholder-petitioner minus all costs and expenses of the seizure, 
forfeiture, and disposal.