7 U.S.C. § 907 : US Code - Section 907: Acquisition of property pledged for loans; disposition; sale of pledged property by borrower

Search 7 U.S.C. § 907 : US Code - Section 907: Acquisition of property pledged for loans; disposition; sale of pledged property by borrower

The Secretary is authorized and empowered to bid for and purchase
at any foreclosure or other sale, or otherwise to acquire, property
pledged or mortgaged to secure any loan made pursuant to this
chapter; to pay the purchase price and any costs and expenses
incurred in connection therewith from the sums authorized in
section 903 of this title; to accept title to any property so
purchased or acquired in the name of the United States of America;
to operate or lease such property for such period as may be deemed
necessary or advisable to protect the investment therein, but not
to exceed five years after the acquisition thereof; and to sell
such property so purchased or acquired, upon such terms and for
such consideration as the Secretary shall determine to be
reasonable.
No borrower of funds under sections 904 or 922 of this title
shall, without the approval of the Secretary, sell or dispose of
its property, rights, or franchises, acquired under the provisions
of this chapter, until any loan obtained from the Rural
Electrification Administration, including all interest and charges,
shall have been repaid.