[Code of Federal Regulations]

[Title 8, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 8CFR274.16]



[Page 638-639]

 

                     TITLE 8--ALIENS AND NATIONALITY

 

               CHAPTER I--DEPARTMENT OF HOMELAND SECURITY

 

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.

    (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



[[Page 639]]



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.