{"identifier":"/us/usc/t46/s53722","title":46,"num":"\u00a7\u202f53722.","heading":"Actions by Secretary or Administrator","text":"\u00a7\u202f53722.\nActions by Secretary or Administrator\n(a)\nGeneral Authority.\u2014\nOn default under an obligation or related agreement between the Secretary or Administrator and the obligor, the Secretary or Administrator, on terms that may be provided in the obligation or agreement, may\u2014\n(1) assume the obligor\u2019s rights and duties under the obligation or agreement, make any payment in default, and notify the obligee or the obligee\u2019s agent of the default and the Secretary\u2019s or Administrator\u2019s assumption; or\n(2) notify the obligee or the obligee\u2019s agent of the default.\n(b)\nDemands by Obligees.\u2014\n(1)\nDemand.\u2014\nIf the Secretary or Administrator proceeds under subsection (a)(2), the obligee or the obligee\u2019s agent may demand that the Secretary or Administrator pay the unpaid principal amount of the obligation and the unpaid interest on the obligation. The demand must be made within the earlier of\u2014\n(A) a period that may be specified in the guarantee or a related agreement; or\n(B) 60 days from the date of the Secretary\u2019s or Administrator\u2019s notice.\n(2)\nPayment.\u2014\nIf a demand is made under paragraph (1), the Secretary or Administrator shall pay to the obligee or the obligee\u2019s agent the unpaid principal amount of the obligation and the unpaid interest on the obligation to the date of payment. Payment shall be made within the earlier of\u2014\n(A) a period that may be specified in the guarantee or a related agreement; or\n(B) 30 days from the date of the demand.\n(c)\nContinued Effect of Guarantee.\u2014\nA guarantee of an obligation remains in effect after an assumption of the obligation by the Secretary or Administrator.\n(d)\nAdditional Responses.\u2014\nIf there is a default on an obligation, the Secretary or Administrator shall conduct operations under this chapter in a manner that\u2014\n(1) maximizes the net present value return from the sale or disposition of assets associated with the obligation, including prompt referral to the Attorney General for collection as appropriate;\n(2) minimizes the amount of any loss realized in the resolution of the guarantee;\n(3) ensures adequate competition and fair and consistent treatment of offerors; and\n(4) requires appraisal of assets by an independent appraiser.","url":"https://projectusc.org/usc/t46/s53722.html","content":[{"t":"sec","id":"/us/usc/t46/s53722","children":[{"t":"num","text":"\u00a7\u202f53722."},{"t":"heading","text":"Actions by Secretary or Administrator"},{"t":"subsec","id":"/us/usc/t46/s53722/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"General Authority.\u2014"},{"t":"chapeau","text":"On default under an obligation or related agreement between the Secretary or Administrator and the obligor, the Secretary or Administrator, on terms that may be provided in the obligation or agreement, may\u2014"},{"t":"para","id":"/us/usc/t46/s53722/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" assume the obligor\u2019s rights and duties under the obligation or agreement, make any payment in default, and notify the obligee or the obligee\u2019s agent of the default and the Secretary\u2019s or Administrator\u2019s assumption; or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t46/s53722/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" notify the obligee or the obligee\u2019s agent of the default.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t46/s53722/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Demands by Obligees.\u2014"},{"t":"para","id":"/us/usc/t46/s53722/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Demand.\u2014"},{"t":"chapeau","text":"If the Secretary or Administrator proceeds under subsection (a)(2), the obligee or the obligee\u2019s agent may demand that the Secretary or Administrator pay the unpaid principal amount of the obligation and the unpaid interest on the obligation. The demand must be made within the earlier of\u2014"},{"t":"subpara","id":"/us/usc/t46/s53722/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a period that may be specified in the guarantee or a related agreement; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t46/s53722/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 60 days from the date of the Secretary\u2019s or Administrator\u2019s notice.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t46/s53722/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Payment.\u2014"},{"t":"chapeau","text":"If a demand is made under paragraph (1), the Secretary or Administrator shall pay to the obligee or the obligee\u2019s agent the unpaid principal amount of the obligation and the unpaid interest on the obligation to the date of payment. Payment shall be made within the earlier of\u2014"},{"t":"subpara","id":"/us/usc/t46/s53722/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a period that may be specified in the guarantee or a related agreement; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t46/s53722/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 30 days from the date of the demand.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t46/s53722/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Continued Effect of Guarantee.\u2014"},{"t":"content","text":"A guarantee of an obligation remains in effect after an assumption of the obligation by the Secretary or Administrator.","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t46/s53722/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Additional Responses.\u2014"},{"t":"chapeau","text":"If there is a default on an obligation, the Secretary or Administrator shall conduct operations under this chapter in a manner that\u2014"},{"t":"para","id":"/us/usc/t46/s53722/d/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" maximizes the net present value return from the sale or disposition of assets associated with the obligation, including prompt referral to the Attorney General for collection as appropriate;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t46/s53722/d/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" minimizes the amount of any loss realized in the resolution of the guarantee;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t46/s53722/d/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" ensures adequate competition and fair and consistent treatment of offerors; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t46/s53722/d/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" requires appraisal of assets by an independent appraiser.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}