Our bank is currently looking to list some of our repo'd assets on Craigslist for sale. Does anyone know of any federal or state laws that might hinder this sale? Has anyone had experience in selling repo'd items on Craigslist or Ebay?

At a prior bank, we did quite a bit of Dealer Paper lending and we had good success selling cars, pickups, and travel trailers on EBAY.
I am not aware of any laws or regs that would prevent this; it definitely creates an arms length sale and is a public auction where you get the highest price you could.

Since we own the collateral and its in our possession i didn't see any problem doing it. I just wanted to see if anyone had had experience with it in the past. Thanks for your input.

At my prior bank, we sold repo'd cars on ebay, too. Quite successfully. We had a blurb on there about being a bank and selling the car as repo'd, etc. We had a specific e-mail address set for this type of use. Several of us were designated as possible receivers of mail from ebay and paypal.

Ebay is a public auction. Craigslist is not. At a minimum, you should read the part of your note (if it is specific) about repossession and sale of collateral following default. Preferably, this is the type of question that should go to your bank's attorney. Even though there are no regulatory "do's and dont's" and your state law probably says nothing on point, there's a risk that some court could declare your property disposal method to be inadequate and order you to forgive or reduce the deficiency balance on the defaulted debt. Only your attorney can advise you of the magnitude of this risk.