41 CFR § 105-55.014 - Liquidation of collateral.

---
identifier: "/us/cfr/t41/s105-55.014"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "41 CFR § 105-55.014 - Liquidation of collateral."
title_number: 41
title_name: "Public Contracts and Property Management"
section_number: "105-55.014"
section_name: "Liquidation of collateral."
chapter_number: 105
chapter_name: "GENERAL SERVICES ADMINISTRATION"
part_number: "105-55"
part_name: "55—COLLECTION OF CLAIMS OWED THE UNITED STATES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 552-553; 31 U.S.C. 321, 3701, 3711, 3716, 3717, 3718, 3719, 3720B, 3720D; 31 CFR parts 900-904."
regulatory_source: "68 FR 68741, Dec. 10, 2003, unless otherwise noted."
cfr_part: "105-55"
---


# 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.