[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: 15CFR21.6]

[Page 199-200]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
PART 21--ADMINISTRATIVE OFFSET--Table of Contents
 
Sec. 21.6  Written agreement to repay debt.

    (a) A debtor will be provided with an opportunity to enter into a 
written agreement with the responsible Departmental official(s) to repay 
the debt owed if the following conditions are met and if specific 
conditions exist that limit his or her ability to immediately repay the 
debt.
    (1) Notification by debtor. The debtor may, in response to the first 
written demand or Notice of Intent, propose a written agreement for 
delayed lump sum or installment payments to repay the debt as an 
alternative to administrative offset. Any debtor who wishes to do this 
must submit a proposed written agreement signed by the debtor to repay 
the debt, including interest, penalties, and administrative costs 
determined by the Department as due. This proposed written agreement 
must be

[[Page 200]]

received by the workout group individual specified in Sec. 21.4(b)(4) 
within 60 calendar days of the date of the Department's initial written 
demand letter, or if in response to the Notice of Intent, within 30 
calendar days of the date of the Department's Notice of Intent.
    (2) Department response. In response to timely notification by the 
debtor as described in paragraph (a)(1) of this section, the 
Departmental unit head (or designee) will notify the debtor within 30 
calendar days whether the debtor's proposed written agreement for 
repayment is acceptable. It is within the discretion of the Departmental 
unit head (or designee) to accept a repayment agreement instead of 
proceeding by offset. However, if the debt is delinquent and the debtor 
has not disputed its existence or amount, the Departmental unit head (or 
designee) should accept a repayment agreement instead of offset only if 
the debtor is able to establish that offset would result in undue 
financial hardship or would be against equity and good conscience. 
Before accepting a repayment agreement, the Departmental unit head (or 
designee) will also consider factors such as the financial statements 
provided by the debtor, the amount of the debt, the length of the 
proposed repayment period (generally not to exceed 3 years), whether the 
debtor is willing to sign a confess-judgment note or give collateral, 
and past dealings with the debtor. In making this determination, the 
Departmental unit head (or designee) will balance the Department's 
interest in collecting the debt against the financial hardship to the 
debtor (see Sec. 21.18). A Departmental unit head (or designee) may deem 
a repayment plan to be abrogated if the debtor should, after the 
repayment plan is signed, fail to comply with the terms of the plan.
    (b) [Reserved]