Potential Liquidation Value Law and Legal Definition

According to 7 CFR 761.2 [Title 7 – Agriculture; Subtitle B Regulations of The Department of Agriculture; Chapter VII Farm Service Agency, Department of Agriculture; Subchapter D Special Programs; Part 761 General Program Administration; Subpart A General Provisions], potential liquidation value is “the amount of a lender's protective bid at a foreclosure sale. Potential liquidation value is determined by an independent appraiser using comparables from other forced liquidation sales.”