Department of the Treasury 

Executive Office for Asset Forfeiture 

Directive Number: 38 

DATE: November 7, 2003 

SUBJECT: Disposition Procedures for Non-Forfeited Personal Property' 

This directive establishes policies and procedures for the disposition of personal 

property items that are held with items seized for forfeiture by law enforcement bureaus 

participating in the Treasury Forfeiture Fund. Generally, the governing regulations for 

the disposition of such articles are the Federal Property Management Regulations 

maintained by the General Services Administration (GSA). See 41 CFR Ch. 101 

Subparts 101-48.1, 101-48.2, and 101-48.3. The procedures for handling property 

governed by this directive are explained below. 

GENERAL POLICY 

To ensure that personal property is handled in such a manner that the rights of 

individuals who have a legitimate claim for such property are protected in 

accordance with the law. To ensure that such property does not delay the 

disposition of property seized for forfeiture and that the handling and storage of 

such property does not create an economic burden for the Treasury Department 

and the bureaus participating in the Treasury Forfeiture Fund. 

II DEFINITIONS 

A. Voluntarily Abandoned Property- Personal property abandoned to a 

Federal agency in such a manner as to vest title thereto in the United States. In 

general, when an individual signs a document stating that they relinquish all title 

to a designated piece of property, that property is considered to be voluntarily 

abandoned. 41 CFR 101-48.001-8. 

B. Abandoned or Unclaimed Personal Property - Property that has not been 

seized as evidence or for forfeiture but is in the possession of the seizing 

agency. Examples are furniture, appliances, and other household items inside a 

seized residence; suitcases left at an airport by an arrestee; clothing, suitcases 

or other personal objects left in vehicle, etc. 41 CFR 101-48.001-1. 2 

1 This Directive applies to a type of property often possessed by law enforcement agencies and 

most accurately identified as "non-forfeited personal property." The abbreviated term "personal 

property" is used throughout this Directive to track the language of and to ensure compliance 

with the appropriate GSA regulations governing the disposition of such property. "Personal 

effects," a term used by some agencies when referring to non-forfeited personal property, are 

personal property covered by this Directive. 

2 The definition in the GSA regulations states that abandoned or unclaimed personal property is 

personal property found on premises owned or leased by the government. law enforcement 
Ill RESPONSIBILITIES 

A. Agencies that participate in the Treasury Forfeiture Fund (TFF) will develop 

internal procedures for carrying out the policies and procedures outlined in this 

directive. 

B. The Treasury Forfeiture Fund will provide funds for the National Seized 

Property Contractors to manipulate and otherwise assist in the disposition of 

personal property, which is directly impeding the disposition of a forfeited asset 

or which is in the possession of the seizing agency due to the seizure of an 

asset(s) for forfeiture. 

C. A special identifier will be used at the Bureau of Customs and Border Patrol 

for the deposit of proceeds from any sale of voluntarily abandoned property, or of 

abandoned or unclaimed property. The National Finance Center (NFC) and 

other appropriate personnel will develop a plan for ultimately transferring these 

proceeds to the general fund of the U.S. Treasury. 

IV PROCEDURE 

A. Voluntarily Abandoned Property 

The bureaus are encouraged to use the voluntary abandonment procedure to 

the greatest extent possible. In general, property that has been voluntarily 

abandoned to the United States may be disposed of immediately in the same 

manner as excess property is handled. Regulations governing disposition of 

excess property are 41 CFR 102-36.245 to 102-6.280. Bureaus will enact 

procedures and maintain adequate records to show that the property has been 

voluntarily abandoned by the rightful owner(s). Normally, such property will 

remain in the custody of and be the responsibility of the holding agency. 

B. Abandoned or Unclaimed Personal Property 

Bureaus are encouraged to minimize the amount of such property in their 

custody. Whenever possible, personal property should be removed from 

residences, autos, vessels, etc, as soon as possible by the rightful owner(s) or 

their representatives. 

actions often involve the seizure of assets not on government property. Normally those assets 

are brought to a government facility for storage. For example, a vehicle containing personal 

property is seized and brought to the national seized property contractor's holding facility. In this 

situation, it is the position of the Treasury Department that the asset is considered found on 

property owned or leased by the government, and the procedures outlined in this directive 

should be employed to dispose of the personal property. 

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Before disposal can occur, title to the property must become vested in the United 

States. Title vests in the United States after the property has been held for a 

period of thirty days. However, even after the thirty-day time period has passed, 

title reverts to an owner when a proper claim is filed. 41 CFR 101-48.102-1. A 

claim can be filed up to three years after the thirty-day period. 41 CFR 101-

48.306-1, 

In the event that a claim is filed and the personal property is no longer available 

to be remitted to its rightful owner, the claim will be satisfied in accordance with 

the procedures defined in the GSA's regulations in 41 CFR 101-48.306-1. 

Specifically, the proceeds from any sale of abandoned or other unclaimed 

property shall be kept in a suspense fund by the National Finance Center for 

deposits of such proceeds. Reimbursement of a proper claim will come from this 

fund, and shall not exceed the proceeds realized from the disposal of the 

property, minus disposal costs and costs of the care and handling of such 

property. 

Notice prior to disposal of abandoned or other unclaimed property. 

Bureaus will develop procedures to ensure that every reasonable attempt has 

been made to notify the rightful owner(s) of abandoned or unclaimed property in 

their custody. Adequate records will be maintained to properly document these 

attempts. At a minimum, at least one written notification will be provided to the 

rightful owner(s) and any known representatives (e.g., counsel) of the pending 

action. The notification will advise all parties that unless a proper claim is filed 

within 30 days of the receipt of the notification, that title will vest in the United 

States and appropriate disposition actions will commence. The notification 

should clearly state what types of disposition may occur (e.g., sale, destruction, 

donation, etc.). The notification should also advise the parties how to make a 

proper claim and where such claim must be filed. Once the thirty-day time frame 

for claim filing has passed, bureaus will immediately commence an appropriate 

disposition action. Sample notice letters are attached to this directive 

[Attachments A and B]. 

C. Note on Personal Property Located Inside or Related to Real Property 

Subject to Forfeiture 

In general, when real property is seized for forfeiture, no action should be taken 

with regard to any personal property until the forfeiture has been perfected. 

Bureaus are encouraged to include all personal property located in or related to 

the real property in the Final Order of Forfeiture, if they are subject to forfeiture. 

Such property shall be disposed of using the normal forfeited property 

disposition procedures. 

If the personal property is not included in the Final Order of Forfeiture, then once 

the real property is forfeited, the procedures outlined in this directive should be 

employed to dispose of the personal property. That is, first seek voluntary 

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abandonment of such property. If that does not occur, then send notice, and 

treat the property as abandoned or other unclaimed property pursuant to this 

policy directive. 

D. Disposition 

Voluntarily abandoned property, and abandoned and other unclaimed 

personal property: Bureaus should use existing excess property procedures 

for disposition of voluntarily abandoned and abandoned and other unclaimed 

property. 3 There are generally three options for disposal of the property: 

(1) destruction; (2) sale; (3) donation. 

Importance of Value: Each bureau will develop procedures to ensure that all 

personal property taken into their custody has been evaluated with a fair market 

value. The value in relation to the cost of care and handling of, including storing, 

the personal property is a large factor in determining the procedures for 

destruction of voluntarily abandoned or abandoned or unclaimed personal 

property. For additional guidance, see GSA's abandonmenUdestruction 

regulations at 41 CFR 102-36.305 through 102-36.330. 

1. Destruction: It is recommended that bureaus destroy all property that is 

deemed appropriate for destruction. When considering destruction of property, 

bureaus should follow these recommended guidelines, which are based on GSA 

regulations. To determine if the property is appropriate for destruction, the 

agency must make a written determination that the property has no commercial 

value4 or that the estimated cost of its continued care and handling5 would 

exceed the estimated proceeds from its sale. 41 CFR 102-36.305; 40 USC 527. 

This written determination must be made by an authorized official of your 

agency, and must be approved by a reviewing official who is not directly 

accountable for the property. 41 CFR 102-36.310. Once this determination has 

been made and approved, the agency may destroy or dispose of the property in 

accordance with the excess property regulations pursuant to 41 CFR 102-36.245 

through 102-36.280. Property deemed suitable for destruction need not be 

reported to GSA. 31 CFR 102-36.220. 

3 GSA regulations allow voluntarily abandoned property to be handled as excess property. 

Further, 40 USC 102(3) defines excess property as "property under the control of a federal 

agency that the head of the agency determines is not required to meet the agency's needs or 

responsibilities." Therefore, abandoned or other unclaimed property may also be disposed of in 

the same m1mner as excess property. 

4 An item has no commercial value when it has neither utility nor monetary value ( either as an 

item or as scrap). 41 CFR 102-36.305. 

5 "Care and handling" includes completing, repairing, converting, rehabilitating, operating, 

preserving, protecting, insuring, packing, storing, handling, conserving, and transporting such 

property, and destroying or rendering innocuous property which is dangerous to public health or 

safety. 41 CFR 102-36.45(d)(3). 

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If abandoned and other unclaimed personal property is not deemed appropriate 

for destruction (i.e., because the value of the property exceeds the cost of its 

continued care and handling, or because it has commercial value), then the 

property may be considered for sale or donation. GSA reporting requirements 

would apply to such property. 

2. Sale: It is important to note that if property is sold, then the proceeds from 

that sale must remain available in a special fund for possible future claims. 41 

CFR 101-48.306-1. Those proceeds will not be deposited into the Treasury 

Forfeiture Fund, but rather into a suspense account at the National Finance 

Center. See Section IV.B above. Bureaus are encouraged to minimize 

disposition expenses to the greatest extent possible by destroying low valued 

property and considering donation whenever possible. 

Sale of personal effects pursuant to this directive may be handled in the same 

manner as sale of forfeited property, including posting notice of such sale and 

the preferred use of public auctions. Because of the costs associated with 

advertising and sale of property, sale should be considered only when the value 

of the property is significantly higher than the cost of care and handling of the 

property. 

3. Donation: Donation of such property is encouraged where appropriate. 

Procedures for donation are governed by 41 CFR 102-36.320, and 41 CFR part 

102-37. 

4. Use of National Seized Property Contractor: The National Seized Property 

contractors may be tasked (at the expense of the Treasury Forfeiture Fund) to 

provide services to assist in disposition activities, provided the property is directly 

impeding the disposition of associated assets seized for forfeiture. Any 

expenses incurred by the contractor should be applied against the asset seized 

for forfeiture. 

5. Reporting and Record Keeping: Bureaus must file reports as required by 

GSA. We anticipate that most property covered by this directive will be 

considered appropriate for destruction and therefore will not be required to be 

reported. For those items of property that are not appropriate for destruction, 

i.e., because the value of the property exceeds the cost of care and handling, 

GSA reporting requirements must be met. As always, bureaus must keep 

accurate records of all property in its custody, its value, the costs incurred in the 

care and handling of the property, the disposition of such property, and the 

proceeds received as a result of any sale of the property. Bureaus may task the 

National Seized Property Contractor to keep such records. 

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