[Code of Federal Regulations]
[Title 14, Volume 5, Parts 1200 to end]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1261.410]

[Page 340-341]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                          SPACE ADMINISTRATION
 
PART 1261--PROCESSING OF MONETARY CLAIMS (GENERAL)--Table of Contents
 
Subpart 1261.4--Collection of Civil Claims of the United States Arising 
      Out of the Activities of the National Aeronautics and Space 
                          Administration (NASA)
 
Sec. 1261.410  Suspension or revocation of license or eligibility; liquidation of collateral.

    (a) In seeking the collection of statutory penalties, forfeitures, 
or debts provided for as an enforcement aid or for compelling 
compliance, NASA will give serious consideration to the suspension or 
revocation of licenses or other privileges for any inexcusable, 
prolonged, or repeated failure of a debtor to pay such a claim. In the 
case of a contractor under 48 CFR chapter 18, NASA will comply with the 
debarment, suspension, and ineligibility requirements of the NASA 
Federal Acquisition Regulation Supplement (NASA/FAR Supplement) at 48 
CFR 1809.4. Likewise, in making, guaranteeing, insuring, acquiring, or 
participating in loans, NASA will give serious consideration to 
suspending or disqualifying any lender, contractor, broker, borrower, or 
other debtor from doing further business with it or engaging in programs 
sponsored by it if such a debtor fails to pay its debts to the 
Government within a reasonable time. The failure of any surety to honor 
its obligations in accordance with 31 U.S.C. 9305 must be reported to 
the Treasury Department at once. Notification that a surety's 
certificate of authority to do business with the Federal Government has 
been revoked or forfeited by the Treasury Department will be forwarded 
by that Department to all interested agencies.
    (b) If NASA is holding security or collateral which may be 
liquidated and the proceeds applied on debts due it through the exercise 
of a power of sale in the security instrument or a nonjudicial 
foreclosure, it should do so by such procedures if the debtor fails to 
pay the debt within a reasonable time

[[Page 341]]

after demand, unless the cost of disposing of the collateral will be 
disproportionate to its value or special circumstances require judicial 
foreclosure. NASA will provide the debtor with reasonable notice of the 
sale, an accounting of any surplus proceeds, and any other procedures 
required by applicable contract or law. Collection from other sources, 
including liquidation of security or collateral, is not a prerequisite 
to requiring payment by a surety or insurance concern unless such action 
is expressly required by statute or contract.