[Code of Federal Regulations]
[Title 33, Volume 1]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 33CFR25.123]

[Page 96-97]
 
                TITLE 33--NAVIGATION AND NAVIGABLE WATERS
 
          CHAPTER I--COAST GUARD, DEPARTMENT OF TRANSPORTATION
 
PART 25--CLAIMS--Table of Contents
 
                           Subpart A--General
 
Sec. 25.123  Settlement and notice to claimant.

    (a) If the settlement authority determines that the full amount 
claimed should be paid, the settlement authority forwards the claim to 
the disbursing officer for payment. If the time involved in settling the 
claim has been extensive, the settlement authority notifies the 
claimant.

[[Page 97]]

    (b) If the settlement authority determines that less than the full 
amount claimed should be paid, the settlement authority:
    (1) Notifies the claimant in writing of the proposed settlement.
    (2) Obtains from the claimant written acceptance and release for 
payment of the claim in the reduced amount.
    (3) Advises the claimant, in the event claimant does not desire to 
accept the offer, to reply within 45 days giving reasons for rejection.
    (4) Except upon a showing of good cause for delay in accepting a 
proposed settlement within 45 days, treats the non-acceptance as a 
rejection. Rejection by a claimant of an offer of settlement renders the 
offer void.
    (5) If a claimant rejects a proposed settlement or fails to reply 
within 45 days, the settlement authority may make further efforts to 
settle the claim. When the settlement authority determines that further 
efforts to settle the claim are not warranted, the settlement authority 
notifies the claimant in writing by registered or certified mail, return 
receipt requested, that the claim has been denied because the amount 
claimed is excessive.
    (c) If the claim is denied, the settlement authority notifies the 
claimant in writing by registered or certified mail, return receipt 
requested.