[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: 14CFR1261.411]

[Page 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. 1261.411  Collection in installments.

    (a) Whenever feasible, and except as otherwise provided by law, 
debts owed to the United States, together with interest penalties, and 
administrative costs as required by Sec. 1261.412, should be collected 
in full in one lump sum. This is true whether the debt is being 
collected by administrative offset or by another method, including 
voluntary payment. However, if the debtor is financially unable to pay 
the indebtedness in one lump sum, payment may be accepted in regular 
installments. Debtors who represent that they are unable to pay the debt 
in one lump sum must submit financial statements. If NASA agrees to 
accept payment in regular installments, it will obtain a legally 
enforceable written agreement from the debtor which specifies all of the 
terms of the arrangement and which contains a provision accelerating the 
debt in the event the debtor defaults. The size and frequency of 
installment payments should bear a reasonable relation to the size of 
the debt and the debtor's ability to pay. If possible, the installment 
payments should be sufficient in size and frequency to liquidate the 
Government's claim in not more than 3 years. Installment payments of 
less than $50 per month should be accepted only if justifiable on the 
grounds of financial hardship or for some other reasonable cause. If the 
claim is unsecured, an executed confess-judgment note, comparable to the 
Department of Justice Form USA-70a, should be obtained from a debtor 
when the total amount of the deferred installments will exceed $750. 
Such notes may be sought when an unsecured obligation of a lesser amount 
is involved. When attempting to obtain confess-judgment notes, the 
debtor should be provided with written explanation of the consequences 
of signing the note, and documentation should be maintained sufficient 
to demonstrate that the debtor has signed the note knowingly and 
voluntarily. Security for deferred payments other than a confess-
judgment note may be accepted in appropriate cases. NASA, at its option, 
may accept installment payments notwithstanding the refusal of a debtor 
to execute a confess-judgment note or to give other security.
    (b) If the debtor owes more than one debt and designates how a 
voluntary installment payment is to be applied as among those debts, 
that designation must be followed. If the debtor does not designate the 
application of the payment, agencies should apply payments to the 
various debts in accordance with the best interests of the United 
States, as determined by the facts and circumstances of the particular 
case, paying special attention to applicable statutes of limitations.