46 U.S.C. § 53725 - Actions against obligor

46 USC 53725 - Actions against obligor

(a) In General.— 
For a default under a guaranteed obligation or related agreement, the Secretary may take any action against the obligor or another liable party that the Secretary considers necessary to protect the interests of the United States Government. A civil action may be brought in the name of the United States or the obligee. The obligee shall make available to the Government all records and evidence necessary to prosecute the action.
(b) Title, Possession, and Purchase.— 

(1) In general.— 
The Secretary may
(A) accept a conveyance of title to and possession of property from the obligor or another party liable to the Secretary; and
(B) purchase the property for an amount not greater than the unpaid principal amount of the obligation and interest thereon.
(2) Payment of excess.— 
If, through the sale of property, the Secretary receives an amount of cash greater than the unpaid principal amount of the obligation, the unpaid interest on the obligation, and the expenses of collecting those amounts, the Secretary shall pay the excess to the obligor.

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