Seized currency, financial accounts, and financial instruments deposited into the Treasury Suspense Account must be transferred to the Treasury Forfeiture Fund upon forfeiture. The TEOAF Form #2, Disposition Instructions for Currency Held in Customs Suspense Account , is used to initiate the transfer of funds that have been forfeited from the Customs Suspense Account to the Treasury Forfeiture Fund (must be signed by the Asset Forfeiture Coordinator along with Form 1570, Declaration of Forfeiture, located in Document Manager. The Final Judgment or Final Order of Forfeiture must be sent by e-mail to the CI Headquarters (HQ)-Warrants and Forfeiture mailbox.

The number of equitable sharing requests filed that relate to the forfeited funds must be included on the form in addition to seizure and forfeiture related expenses (e.g., advertising and any other specific asset related costs), award payments made to Treasury, and prior reimbursements.

The Treasury Executive Office for Asset Forfeiture Form #2 is also used to instruct TEOAF to release funds on deposit in the Treasury Suspense Account to the owner or third parties. A court order generally must accompany instructions to release these funds. If the funds are to be released because of a declination by Division Counsel/Associate Chief Counsel to pursue forfeiture or pursuant to a quick release or through the petition for remission or mitigation process, the associated letter and/or memorandum from Division Counsel/Associate Chief Counsel and/or the AUSA must accompany a concurrence memo from the SAC through the Director, Warrants & Forfeiture to the Director, TEOAF. These documents along with TEOAF Form #2 must be sent by e-mail to the HQ-Warrants and Forfeiture mailbox.

The TEOAF Form #7, Request for Post Forfeiture Refund is used to request a refund of monies that were previously forfeited and deposited into the Treasury Forfeiture Fund. The Treasury Executive Office for Asset Forfeiture Form #7 must be sent by e-mail to the HQ-Warrants and Forfeiture mailbox. Supporting documentation for the request must be included with the instructions.

The TEOAF Form #3, Cost Bond Disposition Instructions, is used to initiate the disposition of a cost bond held in the Treasury Suspense Account . The Treasury Executive Office for Asset Forfeiture Form #3 must be sent by e-mail to the HQ-Warrant and Forfeiture mailbox with the court order providing instructions for the disposition of the cost bond (a current copy of this form is located on the CI Web on the Warrants and Forfeiture Web page).

The TEOAF Directive Number 31, Policy for the Liquidation of Seized and Forfeited United States Savings Bonds, sets forth procedures developed by Department of the Treasury and Department of Justice, the Bureau of the Public Debt, and the US Marshals Service to liquidate seized and forfeited US Savings Bonds (see Directive Number 31 on the CI Web on the Warrants and Forfeiture Web page).

After forfeiture, the US Savings Bond shall be hand delivered to TEOAF or sent by registered mail, return receipt requested, with the documentation required by TEOAF Directive Number 31. The TEOAF will process redemption of the bonds with the Bureau of the Public Debt. Upon receipt of payment from the Bureau of the Public Debt, TEOAF will deposit the funds into the Treasury Forfeiture Fund.

Criminal Investigation initiates the disposition of seized and/or forfeited property by furnishing the seized property contractor with a US Customs Disposition Form (Disposition Orders/Instructions) signed by the responsible AFC who is trained and certified as a field Designated Areal Representative (AFC/DAR). The seized property contractor will not act upon disposition orders received from any other entity. When directed by the AFC/DAR, the seized property contractor will perform a disposition analysis to determine and recommend the most cost-effective disposition available to CI.

The AFC/DAR may request that the seized property contractor dispose of seized property in one of the following ways:

The seized property contractor will remit seized property to the party designated, i.e., owner or third party, by the AFC/DAR on the Disposition Order/Instructions.

The seized property contractor will collect all associated costs including holding or direct costs. Direct costs include contracting fees, cost of transportation, storage, security, maintenance, and other miscellaneous charges attributable to a particular seizure. Approval to waive these direct costs is obtained in writing from the Director, Warrants and Forfeiture on the Disposition Order/Instructions. Approval from the Director, Warrants and Forfeiture is necessary to waive the direct costs. The AFC/DAR may not waive direct costs. The Disposition Order/Instructions with the Director's signature, approving waiver of the direct costs, will be sent to the seized property contractor.

The seized property contractor will:

Original Form 9573 must be returned to the AFC/DAR upon disposition of the seized property.

The seized property contractor will release seized or forfeited property to CI when designated on the Disposition Order/Instructions by the AFC/DAR. The seized property contractor will obtain the signature on the Form 9573 of the individual designated on the Disposition Order/Instructions. The original Form 9573 will be returned to the AFC/DAR upon disposition of the property.

For forfeited property retained by CI or other participating Treasury Forfeiture Fund law enforcement agency, the seized property contractor will not collect associated costs.

The seized property contractor, upon request, will arrange for packing, crating, and shipment of forfeited property designated for official use.

The seized property contractor will release property to other (non-Treasury) Federal, state, or local agencies designated on the Disposition Order/Instructions by the AFC/DAR. The seized property contractor will collect from the recipient agency all associated costs including holding costs (direct costs of transportation, storage, security, maintenance, and other miscellaneous charges attributable to the particular seizure) as established by CI, before releasing the property unless approval to waive these costs is obtained by the AFC/DAR from Warrants and Forfeiture in writing on the Disposition Order/Instructions. Approval from Warrants and Forfeiture is necessary to waive the holding costs. The AFC/DAR may not waive the holding costs.

The recipient agency will be required to pay all existing liens identified on the Disposition Order/Instructions and show proof of payment before the property is released directly to the recipient agency.

The seized property contractor will arrange for packing, crating, and shipment of forfeited property designated for official use. The receiving Federal, state, or local agency will pay transportation and packing costs unless otherwise directed by the AFC/COTR.

The seized property contractor will destroy seized and/or forfeited property as prescribed and directed by the AFC/DAR on the Disposition Order/Instructions. Property to be destroyed includes items unlawful to sell, items which constitute a safety hazard to the public, and forfeited items for which the seized property contractor's holding cost plus sales costs and overhead would exceed expected revenue.

Refer to the SOW for additional information regarding the destruction of property.

To ensure forfeited property is not sold to a criminal defendant or his/her agent, prospective bidders must complete and submit a bidder registration form to the seized property contractor. Completion of this form represents the bidder's certification that the bidder and/or the parties that the bidder is representing are not the individuals from whom the property was forfeited and the bidder is not bidding for or on behalf of those individuals.

When selling property forfeited by CI, the seized property contractor may hold the purchased property for three days after providing the name of the purchaser to CI. The seized property contractor may release the forfeited property to the purchaser at the close of business on the third day following the sale if no further instructions have been received from CI.

The TEOAF Directive Number 1, Purchase or Personal Use of Forfeited Property by Treasury Employees, prohibits employees and any members of their immediate family from purchasing property that has been forfeited and is being sold by the Department of the Treasury or its agents. This policy is intended to ensure that there is no actual or apparent use of inside information by employees wishing to purchase such property. The purpose of this policy is to protect the integrity of the asset forfeiture program.

If seized property is liable to perish, waste, or greatly depreciate in value during pendency of the forfeiture proceedings or if the expenses of keeping the property are excessive, the property may be sold and the proceeds of the sale treated as a substitute for the original property in the ensuing forfeiture.

As a general rule, seized property may be sold before forfeiture in two circumstances: a stipulated sale and an interlocutory sale. A stipulated sale occurs when all interested parties agree to the terms of sale and a district court approves the transaction. An interlocutory sale is ordered by the court and does not require agreement by all interested parties. This type of sale occurs when the seized property is "liable to perish or waste," is likely "to be greatly reduced in value by keeping" or "the expense of keeping the seized property is disproportionate to its value."

The TEOAF Directive Number 27, Processing Interlocutory Sales, provides policy guidance to law enforcement agencies and the seized property contractor for interlocutory sales.

The seized property contractor may sell seized property pursuant to an interlocutory sale. The AFC/DAR will provide the seized property contractor with the Disposition Order/Instructions, along with a copy of the interlocutory sale order from the court.

The seized property contractor will clearly identify any deposit and full payment for seized property from the stipulated or interlocutory sale to be deposited into the Treasury Suspense Account.

The seized property contractor will, upon receipt of the total net balance of the sale, and after deducting any payments for approved liens, taxes, mortgages, costs and legal fees associated with the closing, notify CI of the total net amount, identified as the "substitute res," so that the AFC/DAR can notify the court and update AFTRAK. The seized property contractor will deposit the total net balance of the sale into the Treasury Suspense Account .

The seized property contractor will plan sales on a continuing basis. Sale planning is designed to maximize net revenue by conducting timely sales, effectively managing the cost of sales, and by the use of other market techniques as needed. Pre-sale planning includes the evaluation of forfeited property for sale, selection of the most appropriate method and location for sale, and identification of actions needed to conduct a sale.

The seized property contractor will analyze forfeited property available for sale, schedule, market, advertise, and conduct sales in a way that maximizes and secures the greatest return to the government. The seized property contractor will operate a sales information program that provides accurate, timely sales information, including responses to all public inquires concerning the time, place, and nature of all sales.

The seized property contractor will provide the catalogs describing the forfeited property to be sold to the AFC/DAR prior to the sale.

Forfeited property is to be sold by the seized property contractor at public auction using competitive methods. Public auctions can be opened to prospective bidders in locations outside the local sale site by means of telecommunication or audio/visual networks.

The seized property contractor may use the following methods, further defined in the SOW, to sell forfeited property at public auction:

The seized property contractor will publicly advertise the sale of forfeited property in order to generate maximum competition and fulfill the legal requirements of 19 CFR 127.25.

The seized property contractor is required to respond by telephone or in writing to public inquiries regarding time, place, and nature of all sales.

The seized property contractor provides a subscription service whereby the public may purchase subscriptions to notices of all public sales.

The seized property contractor will ensure that all prospective bidders are given the opportunity to view, handle, and inspect all items designated for sale prior to any scheduled sale held at the contractor operated facilities and subcontractors' and vendors' facilities.

The AFC/DAR must place a minimum bid or reserve bid amount on the Disposition Order/Instructions directing the seized property contractor to sell the forfeited asset. The AFC/DAR should consult with the seized property contractor who will provide their recommendations prior to setting a minimum bid on forfeited property. After obtaining input from the seized property contractor, the AFC/DAR will indicate the minimum bid on the Disposition Order/Instructions provided to the seized property contractor prior to sale or auction of the property.

The seized property contractor will not schedule a sale until the AFC/DAR sets a minimum bid for the forfeited property.

For specific information regarding conduct of sale, refer to the SOW which contains several pages of requirements for the seized property contractor.

Forfeited property offered for sale and not sold will be re-offered for sale at the seized property contractor's next regularly scheduled auction. The AFC/DAR need not re-issue the Disposition Order/Instructions for resale of unsold items. However, the AFC/DAR needs to consider whether the minimum bid needs to be altered in consultation with the seized property contractor and/or Warrants and Forfeiture.

The seized property contractor will prepare the formal transfer of documents for all conveyances sold to the public and forward the documents to the AFC/DAR for approval. These documents, issued to the purchaser at the time of sale, will enable the seized property contractor to transfer title to the property from the government to a private entity.

The SAC has the authority to sign government title transfer documents (Delegation Order Number 9-2).

Upon receipt of the Disposition Order/Instructions along with a judgment or Final Order of Forfeiture from the AFC/DAR to sell real property, the seized property contractor will evaluate the property, analyze variables, and determine the appropriate method of sale (e.g., sell by auction or list with a local real estate broker and sell through usual real estate marketing procedures).

The seized property contractor will record the Final Order of Forfeiture with the appropriate authorities when requested by the AFC/DAR. The AFC/DAR will provide the seized property contractor with the Disposition Order/Instructions, and a certified copy of the final recorded order of forfeiture from the court.

It is the policy of the Department of the Treasury to sell forfeited real properties with title insurance to maximize the revenue from the sale. On occasion, some real properties are held for long periods of time while CI and the seized property contractor attempt to clear a "clouded" title to the property as interpreted by the title company. This results in increased property management costs and the inherent liabilities of maintaining vacant real properties in inventory for long periods of time.

Real property forfeited to the government in a judicial proceeding vests title in the United States. On occasion, title companies challenge the government's title for title insurance purposes because of perceived defects in notice, in the satisfaction of lienholder interest, or in the forfeiture process. As a result, these title companies will not issue title insurance for the property.

In order to expedite the disposition of properties with "clouded" titles, it is the policy of the Department of the Treasury to dispose of the property using a Special Warranty Deed and, if necessary, an Indemnification Agreement. This procedure, as detailed in TEOAF Directive Number 32, Use of Special Warranty Deed and Indemnification Agreement for the Sale of Real Property, should expedite the sale of such properties, but may not encourage a title company to issue title insurance (see TEOAF Directive Number 32 on the CI Web on the Warrants and Forfeiture Web page).

For guidance in disposing of real property contaminated with hazardous substances or lead based paint, or real property included in or eligible for the National Register of Historic Places, refer to TEOAF Directive Number 7, Seizure and Forfeiture of Real Property that is Potentially Contaminated or is Contaminated with Hazardous Substances; TEOAF Directive Number 25, Departmental Policy Regarding the Seizure and Forfeiture of Real Property that is Included in or Eligible for the National Register of Historic Places; and TEOAF Directive Number 30, Interim Guidelines re: Lead-Based Paint in Residential Property Built Prior to 1978 (see these Policy Directives on the CI Web on the Warrants and Forfeiture Web page).

The Department of the Treasury's policy on the payment of liens on forfeited motor vehicles is contained in TEOAF Directive Number 33, Seizure of Motor Vehicles, Payments of Liens and Official Use Requirements (see TEOAF Directive Number 33 on the CI Web on the Warrants and Forfeiture Web page).

Once a forfeited vehicle is sold, the AFC/DAR must forward, to the HQ-Warrants and Forfeiture e-mail box, a written request from the SAC; through the Director, Warrants and Forfeiture; to the Director, TEOAF: a copy of the Disposition Order/Instructions signed by the seized property contractor stating the gross sales proceeds; a statement indicating the appraised value at the time of seizure; and any other required information and documentation specified on the Lien Payment Checklist in TEOAF Directive Number 33.

It is the responsibility of the AFC/DAR to notify Warrants and Forfeiture when expedited action is required to comply with the terms of a court order. Criminal Investigation must communicate to the involved AUSA the need to include reasonable time limits for the accomplishment of lien payments in court orders. A 90 day time period from the date of issuance of a forfeiture order or from the date of sale is the recommended standard.

It is the responsibility of CI to ensure that requests for payment of liens do not occur until the subject vehicles are forfeited and that the amount of the payment requests do not exceed the lesser of the appraised value, net proceeds of sale, or the unpaid loan principal balance.

The TEOAF will be responsible for expeditiously approving all properly documented lien payment requests and ensuring that the approved requests are timely forwarded to NFC for payment processing.

There have been a number of situations where forfeited property was sold and the purchaser learned that the property was reported stolen or has a "salvage" title. This results in considerable difficulties for the purchaser and negative publicity for the asset forfeiture program.

The Treasury Executive Office for Asset Forfeiture Directive Number 29, Seizure and Disposition of Properties Subject to Title Restrictions, requires participating Treasury Forfeiture Fund law enforcement agencies to determine at the time property is seized for forfeiture whether or not a particular seized property was reported as "stolen" in situations involving vehicles, vessels, and aircraft or as salvage in cases involving conveyances. The Treasury Executive Office for Asset Forfeiture Directive Number 29 requires that the status of these properties be checked again at the time of disposition to ensure that no reports identifying these properties as "stolen" or as "salvage" were reported to law enforcement, licensing, or titling agencies after seizure.

Any properties identified as "stolen" or "salvage" will not be sold, retained for official use, or transferred to another Federal, state, or local law enforcement agency through equitable sharing without a written request for approval from the SAC; through the Director, Warrants and Forfeiture; to the Director, TEOAF.

Both TEOAF Directive Number 17 and the DOJ Policy set forth nine general policies. Highlights of four of those policies are listed below:

A settlement that purports to "forfeit" property only binds the parties to that agreement; therefore, it is necessary to complete the forfeiture action so that a forfeiture of the property occurs. In civil forfeiture cases, the AUSA must assure that a valid and complete forfeiture occurs by:

If the settlement occurs in the context of a criminal investigation by way of a plea agreement, the AUSA must remember that a defendant can agree to forfeit only that interest in the property that belongs to him/her. Any settlement in the context of a plea agreement technically results in a forfeiture of only the defendant's interest in the property with the interests of third parties to be resolved in an ancillary proceeding. Accordingly, the AUSA must ensure that a valid forfeiture results through a plea agreement by:

Criminal Investigation may place forfeited property that has a law enforcement purpose into official use. Neither cash nor proceeds from the sale of forfeited property may be transferred to or retained by the participating Treasury Forfeiture Fund enforcement agency. Cash and proceeds must be deposited into the Treasury Forfeiture Fund.

Requests to retain or transfer real property to other Federal agencies may be considered if such transfers will serve a significant and continuing Federal purpose. Requests to place real property into official use must be submitted by memorandum from the SAC; through the Director, Warrants and Forfeiture; to the Director, TEOAF.

No seized property will be placed into official use until a final judgment or Final Order of Forfeiture has been entered and the request to place the property into official use has been approved by the appropriate official. Likewise, other Federal, state, or local law enforcement agencies acting in the capacity of a substitute custodian may not use such property for any purpose before completion of the forfeiture. However, the Director, TEOAF, may grant exceptions in certain situations, such as the seizure of a ranch or business where continued operation of the enterprise is necessary to maintain the value of property.

The TEOAF requires each participating Treasury Forfeiture Fund enforcement agency to establish internal guidelines consistent with the following guidelines governing the placement of property into official use.

All official use guidelines shall:

The Secretary of the Treasury has delegated the authority to place real property into official use to the Under Secretary (Terrorism and Financial Intelligence). The Under Secretary (Terrorism and Financial Intelligence) has delegated this authority to the Director, TEOAF.

The Secretary of the Treasury has delegated the authority to place non-cash personal property into official use to the head of the participating Treasury Forfeiture Fund law enforcement agency responsible for the seizure.

Requests to place non-cash personal property into official use in CI must be submitted by memorandum from the SAC of the field office responsible for the forfeiture to the Director, Field Operations, with the concurrence of the CI Headquarters Section responsible for that program area (i.e., undercover assets through Special Investigative Techniques, equipment and vehicles through Investigative Equipment Section, justifying and detailing the reasons why the forfeited property should be placed into official use.

The TEOAF Directive Number 33, Seizure of Motor Vehicles, Payment of Liens and Official Use Requirements, permits participating Treasury Forfeiture Fund enforcement agencies to determine whether a forfeited vehicle is suitable for retention for official use based on the agencies' internal guidelines.

The year, mileage, and the effect on the field office fleet are criteria that should be considered before placing a forfeited vehicle into official use. In addition, a cost benefit analysis will be performed by the Finance and Investigative Equipment sections to determine if it is appropriate to place the specific vehicle into official use.

Luxury vehicles will not be placed into official use except for specific unique use such as undercover operations. See IRM 9.11.3, Investigative Property, for more information about luxury vehicles.

When the established criteria in Directive Number 33, Seizure of Motor Vehicles, Payment of Liens and Official Use Requirements, is met, TEOAF will pay liens on forfeited vehicles to be placed in official use by CI. The Director, TEOAF, will not authorize payment of liens to retain vehicles for official use when net equity is less than $5,000.

A request to pay a lien to retain a forfeited vehicle for official use should be sent by memorandum from the SAC, through the Director, Warrants and Forfeiture, to the Director, TEOAF. The request should include a copy of the request and approval to place the vehicle into official use signed by the Director, Field Operations, which certifies that the vehicle is suitable for official use. A detailed memorandum that articulates the justification for the request must accompany any request for payment of a lien for more than $25,000.

Once a vehicle designated for official use is forfeited, CI must obtain a written agreement from the lienholder to accept payment of the lesser amount of the unpaid principal balance or the appraised value before submitting a request for payment of the lien to TEOAF. If the lienholder refuses to provide such an agreement, they should be notified that the vehicle will be sold at auction and that the lien will be satisfied from the net proceeds of the sale.

If the lienholder agrees to accept payment of the lesser of the unpaid principle balance or appraised value to satisfy the lien, then CI should forward that agreement along with the required documentation and information specified on the Lien Payment Checklist to the Warrants and Forfeiture mailbox for review. The request should specify to whom to make the check or Electronic Funds Transfer payable and to what address or account the payment is to be sent.

When CI seeks to place forfeited property into official use and another Federal, state, local agency, or foreign country has filed a request for an equitable share of the property, the SAC, with assistance from the AFC/DAR and investigating agent, may refer to the Guidelines for Seized and Forfeited Property located on TEOAF's Web site in the Red Book, for factors to consider in making a determination regarding the disposition of the property.

The Secretary of the Treasury has delegated responsibility for the operation and administration of the Treasury Forfeiture Fund to the Under Secretary (Terrorism and Financial Intelligence) who has re-delegated these functions and duties to the Director, TEOAF.

The Under Secretary (Terrorism and Financial Intelligence), or designee, makes all determinations regarding distributions from the Treasury Forfeiture Fund. As part of this process, TEOAF prepares annual budget estimates for the Treasury Forfeiture Fund based on information submitted by participating Treasury Forfeiture Fund law enforcement agencies.

The TEOAF is responsible for preparing and submitting to Congress annual budgets and reports on the Treasury Forfeiture Fund. The participating Treasury Forfeiture Fund law enforcement agencies, including CI, provide the necessary information to TEOAF for preparation of these reports.

The Treasury Forfeiture Fund is a special fund. Special funds are Federal fund collections that are earmarked by law for specific purposes. Title 31 USC §9703 defines the purposes for which revenue forfeited by the Department of the Treasury may be used.

The three types of spending authority of the Treasury Forfeiture Fund are:

The following is a summarized list of mandatory authority expenses that qualify for reimbursement from the Treasury Forfeiture Fund with respect to seizures and forfeitures effected by CI or another participating Treasury Forfeiture Fund law enforcement agency:

For a detailed list of the expenses and whether they qualify, refer to the Guidelines for Seized and Forfeited Property and 31 USC §9703(a)(1) or consult Warrants and Forfeiture.

In addition to payments and reimbursements for expenses of a seizure and forfeiture not effected by CI or another participating Treasury Forfeiture Fund law enforcement agency, expenses not payable from the Treasury Forfeiture Fund include, but are not limited to:

The Secretary of the Treasury has the discretion to make payments from the Treasury Forfeiture Fund for other specifically authorized expenses (see 31 USC §9703(a)(2)) when funds are appropriated for that purpose. Congress has not appropriated funds for such purpose since fiscal year 1997. Should funds be appropriated for this purpose, those funds shall be made available to meet authorized expenses identified by the law.

The field office program analyst and the AFC/DAR will coordinate the monthly reporting of seizure and forfeiture expenses that qualify for reimbursement from the Treasury Forfeiture Fund for preparation of the Treasury Forfeiture Fund-Reimbursement Report (see the CI Web on the Warrants and Forfeiture Web page for a current copy of the report). This report, approved by the SAC, is submitted monthly to Warrants and Forfeiture. For a detailed list of the expenses and whether they qualify, refer to the Guidelines for Seized and Forfeited Property and 31 USC §9703(a)(1) or consult Warrants and Forfeiture.