InfoSight Spotlight: Forfeiture of vehicles and other property

The latest edition of InfoSight newsletter includes a new topic. Forfeiture of Vehicles and Other Property has been added to the Loans and Leasing channel. Federal statutes authorize the government to seize and have declared forfeited any aircraft, vehicle or vessel used in connection with the violation of certain federal or state laws

The most common forfeitures are for violation of customs law (19 U.S.C. 1594), unlawful transportation of liquor (18 U.S.C. 3667, 3669), unlawful transportation of narcotics or other drugs (21 U.S.C. 881, 888), transportation of illegal aliens (8 U.S.C. 1324), and under 18 U.S.C. 981, altering or removing automobile VIN numbers, importing or exporting stolen vehicles, carjacking and transporting, selling or receiving stolen vehicles.

REMISSION OF FORFEITURE
Since forfeiture is a severe penalty and since the interests of innocent third parties are usually involved, the statutes provide for remission and mitigation of forfeiture.  Generally, a secured party, such as a credit union, may on a proper showing to the Treasury Department, or, in a court action:

1. recover the seized property;
2. recover the proceeds of sale of the forfeited property; or
3. obtain a reduction of the penalty.

Read more in the current InfoSight newsletter.