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

(a) In General. — For a default under a guaranteed obligation^* or related agreement, the Secretary^* or Administrator^* may take any action against the obligor^* or another liable party that the Secretary or Administrator 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 must make available to the Government all records and evidence necessary to prosecute the action. (b) Title, Possession, and Purchase. — (1) In general. — The Secretary or Administrator may — (A) accept a conveyance of title to and possession of property from the obligor or another party liable to the Secretary or Administrator; 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 or Administrator 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 or Administrator must pay the excess to the obligor.