[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR2506.15]

[Page 562-563]
 
                        TITLE 45--PUBLIC WELFARE
 
       CHAPTER XXV--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
 
PART 2506_COLLECTION OF DEBTS--Table of Contents
 
                      Subpart B_General Provisions.
 
Sec. 2506.15  What will the notice tell me regarding collection actions 

that might be taken if the debt is not paid within 60 days of the notice, 
or 
          arrangements to pay the debt are not made within 60 days of 
          the notice?

    The notice provided under Sec. 2506.14 will advise you that, within 
60 days of the date of the notice, your debt (including any interest, 
penalty charges, and administrative costs) must be paid or you must 
enter into a voluntary repayment agreement. If you do not pay the debt 
or enter into the agreement within that deadline, the Corporation may 
enforce collection of the debt by any or all of the following methods:
    (a) By transferring the debt to the Treasury for collection, 
including under a cross-servicing agreement with the Treasury (see Sec. 
2506.10);
    (b) By referral to a credit reporting agency (see Sec. 2506.12), 
private collection contractor (see Sec. 2506.13), or the DOJ (see Sec. 
2506.11);
    (c) If you are a Corporation employee, by deducting money from your 
disposable pay account until the debt (and all accumulated interest, 
penalty charges, and administrative costs) is paid in full (see subpart 
C of this part). The Corporation will specify the

[[Page 563]]

amount, frequency, approximate beginning date, and duration of the 
deduction. 5 U.S.C. 5514 and 31 U.S.C. 3716 govern such proceedings;
    (d) If you are an employee of a Federal agency other than the 
Corporation, by initiating certification procedures to implement a 
salary offset by that Federal agency (see subpart C of this part). 5 
U.S.C. 5514 governs such proceedings;
    (e) By referring the debt to the Treasury for offset against any 
refund of overpayment of tax (see subpart D of this part);
    (f) By administrative offset (see subpart E of this part);
    (g) By administrative wage garnishment (see subpart F of this part); 
or
    (h) By liquidation of security or collateral. The Corporation has 
the right to hold security or collateral, liquidate it, and apply the 
proceeds to your debt through the exercise of a power of sale in the 
security instrument or a foreclosure. The Corporation will not follow 
the procedures in this paragraph (h) if the cost of disposing of the 
collateral will be disproportionate to its value.