[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-55.014]

[Page 410]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-55_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Sec. 105-55.014  Liquidation of collateral.

    (a) The General Services Administration (GSA) will liquidate 
security or collateral through the exercise of a power of sale in the 
security instrument or a non-judicial 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 best 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 GSA learns a bankruptcy petition has been filed with 
respect to a debtor, the Agency will ascertain the impact of the 
Bankruptcy Code, including, but not limited to, 11 U.S.C. 362, to 
determine the applicability of the automatic stay and the procedures for 
obtaining relief from such stay prior to proceeding under paragraph (a) 
of this section.

[[Page 411]]