[Code of Federal Regulations]
[Title 15, Volume 1]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR21.18]

[Page 204]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
PART 21--ADMINISTRATIVE OFFSET--Table of Contents
 
Sec. 21.18  Collection in installments.

    (a) Whenever feasible, and unless otherwise provided by law, debts 
owed to the United States, together with interest, penalties, and 
administrative costs should be collected 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, the 
responsible Departmental official(s) may accept repayment in regular 
installments (See Sec. 21.6). Prior to approving such repayments, 
financial statements shall be required from the debtor who represents 
that he/she is unable to pay the debt in one lump sum. A responsible 
Departmental official who agrees to accept payment in regular 
installments should 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 relationship 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 
three 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 debt is an unsecured claim for 
administrative collection, attempts should be made to obtain an executed 
confess-judgment note, comparable to the Department of Justice Form USA-
70a, 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, Departmental units should provide their debtors with 
written explanation of the consequences of signing the note, and should 
maintain documentation 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. A Departmental units head (or designee) 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, the Department debt collection official 
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.