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DEPARTMENT OF THE TREASURY 

EXECUTIVE OFFICE FOR ASSET FORFEITURE 

DIRECTIVE NO. 20 

DATE: July 9, 2015 

SUBJECT: Net Equity Requirements for Seized Property 

1. PURPOSE. This Deparlment of the Treasury Executive Office for Asset Forfeiture (TEOAF) Directive 

No. 20 establishes Treasury policy for the net equity requirements of seized property. 

2. SCOPE. This Directive applies to seizures initialed by seizing agencies participating in lhe Treasury 

Forfeiture Fund (TFF) as well as slate and local seizures adopted by these agencies. 

3. POLICY. The minimum net equity levels established in this Directive generally shall be met before 

property is seized unless it WOlild compromise a law enforcement investigation, in which case it shall be 

established as soon as practicable after seizure. The net equity values are intended lo decrease the 

number of federal seizures, thereby enhancing case quality and expediting processing of lhe cases 

initiated. The thresholds are also intended to encourage stale and local law enforcement agencies to use 

slate forfeiture laws for their seizures. 

4. SEIZING AGENCY RESPONSIBILITIES. The seizing agency is responsible for ensuring that the net 

equity requirements are met as established in this Directive. The seizing agency is also responsible for 

ensuring that current and accurate information on the ownership of, and any encumbrances against, 

property targeted for forfeiture is compiled prior to seizure whenever practicable, or as soon as possible 

following the seizure. 

In deciding whether to proceed with the seizure or forfeiture of properly that is near the minimum equity 

threshold, the seizing agency must evaluate and consider the forfeitable net equity and the law 

enforcement purposes to be served in light of the potential liability issues and estimated costs of postseizure management and disposition. Depending on the circumstances, this evaluation may require 

consultation with the national seized property contractor and the U.S. Attorney. 

5, PROCEDURES. 

A. Asset-specific Net Equity Thresholds 

In general, the minimum net equity requirements are: 

(1) Residential/Commercial real property and vacant land-minimum net equity must be at least 20 

percent of the appraised value or $30,000, whichever is greater.' No property with a net equity of less 

than $30,000 should be federally forfeited. 

1 As ageneral rule, the TFF law enforcement agencies do not seize or adopt contaminated real properly. See 

TEOAF Directive 7, Seizure and Forfeiture of Real Properly That Is Potentially Contaminated or Is Contaminated with 

Hazardous Substances. 

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(2) Vehicles-minimum net equity must be at least $5,000 (based on National Automobile Dealers 

Association (NADA) "Trade-In Value"). The value of multiple vehicles seized at the same time cannot be 

aggregrated for the purpose of meeting this minimum. 

(3) Currency, financial accounts, and financial instruments-minimum amount must be at least $5,000, 

unless the person from whom the item was seized either was, or is, being criminally prosecuted by slate 

or federal authorities for criminal activities related to the property, in which case the amount must be at 

least $1,000. 

(4) Aircraft-minimum net equity must be at least $30,000. Note that failure to obtain the log books for 

the aircraft will reduce the aircraft's value significantly. 

(5) Vessels-minimum net equity must be at least $15,000. 

(6) All other personal property-minimum net equity must be at least $1,000, or $5,000 in the aggregate. 

A United States Attorney may institute higher district-wide thresholds for judicial forfeiture cases. 

Investigative personnel at the seizing agency should be familiar with their judicial district's thresholds. 

B. Deviation from Net Equity Requirements 

(1) While deviation from the net equity requirements is generally prohibited, in some circumstances law, 

regulation, or an overriding law enforcement interest may require or compel the seizure/forfeiture of an 

asset that does not meet these criteria (e.g., instrumentalilies of the crime, forfeiture of a "crack house," a 

conveyance with hidden compartments, a computer or Internet domain name seized to disrupt a majo_r 

fraud scheme, assets connected to a child pornography ring or a terrorist organization, or real property 

used to harbor illegal aliens). Treasury policy does not preclude seizure in such circumstances. 

(2) Deviation may also be acceptable in circumstances where the collective value of a group of related 

assets meets the threshold and seizure of the group does not materially increase the Government's 

costs, risk, or property management burden (e.g. 20 items of jewelry, each valued at $500, might be 

seized, as the total value of the items is $10,000 and the cost, risk, and property management burden of 

storing 20 small items of jewelry is not materially higher than for a single piece of jewelry. However the 

seizure of two $4,000 vehicles cannot be justified solely by their collective value, because the 

Government's risk, cost, and property management burden increases materially with each additional 

vehicle seized). 

(3) All deviations from the net equity requirements must be approved by the seizing agency's 

supervisory-level official. Both the name of the approving official and t11e reason for the deviation must be 

noted in the case file. 

C. Ownership and Encumbrances 

The identification of owners and those with a financial interest in property is a critical component of the 

agency's and the U.S. Attorney's decision to seize property. 

(1) The investigative agency is responsible for ensuring that current and accurate information on the 

ownership of, and any encumbrances against, personal property and conveyances targeted for forfeiture 

is compiled prior to seizure whenever practicable. 

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(2) In cases where information relating to titles and liens cannot be acquired without compromising an 

investigation, the investigating agency shall obtain the data as soon as possible following the seizure. 

Tl1ese post-seizure inquiries shall also apply to seizures of personal/general property and conveyances at 

border situations as appropriate. 

(3) In instances where real properly and businesses are targeted for seizure, the investigating agency 

will have primary responsibility for ensuring that a title search, a fair market appraisal, and an 

environmental study are performed prior to seizure, as appropriate in individual cases. 

See TEOAF Directive No. 29, "Seizure and Disposition of Properties Subject to Title Restrictions," for 

additional details on ownership and encumbrances. 

6. AUTHORITY. 31 U.S.C. § 9703: Treasury Directive 27-03, "Organizations and Function of the Office 

of the Assistant Secretary (Enforcement)"; Delegation Memorandum dated May 19, 1995, "Technical 

Correction to EOAF Delegation of Authority"; and Treasury Order 102-14, March 24, 2007, "Delegation of 

Authority with Respect to the Department of the Treasury Forfeiture Fund." 

7. INFORMATION CONTACT. Any inquiries pertaining to this Directive should be directed to TEOAF's 

Seized Property Team at (202) 622-9600. 

8. CANCELLATION. TEOAF Directive No. 20, "Net Equity Requirements for Seized Property," 

September 23, 1994 (revised 3/21/1997, and 6/3/2014), is hereby superseded. This Directive also 

supersedes our previous guidance on Minimum Monetary Thresholds for Adoptive Cases specified on 

page 8 of The Department of the Treasury Guide to Equitable Sharing for Foreign Countries and Federal. 

State, local law Enforcement Agencies, April 2004. 

9. EFFECTIVE DATE., August 1, 2015. 

/SI. 

John Farley 

Acting Director 

TEOAF 

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