[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1261.410]

[Page 350-351]
 
                     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

[[Page 351]]

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Government has been revoked or forfeited by the Treasury Department will 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 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.