[Code of Federal Regulations]
[Title 7, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR3.25]

[Page 266]
 
                          TITLE 7--AGRICULTURE
 
PART 3_DEBT MANAGEMENT--Table of Contents
 
                        Subpart B_Debt Collection
 
Sec. 3.25  Notice requirements before offset.

    (a) Before an agency effects administrative offset, the creditor 
agency must provide the debtor with a minimum of 30 calendar days' 
written notice that unpaid debt amounts will be collected by 
administrative offset against any money that the United States is going 
to pay to the debtor, unless the creditor agency determines immediate 
action is necessary under Sec. 3.26, or the debtor enters into a 
repayment agreement or requests review.
    (b) The Notice of Intent to Collect by Administrative Offset must be 
served on the debtor by personal delivery, first class mail, or 
certified mail and will state:
    (1) The amount of the debt, the date it was incurred, the name and 
address of the offsetting agency, and the program under which the debt 
was incurred.
    (2) The rate of interest accrued from the date of mailing or other 
delivery of the initial demand letter, and the amount of any other 
penalties or administrative costs added to the principal debt.
    (3) The creditor agency's intention to collect the debt by 
administrative offset against any funds that might become available, 
until the principal debt and all accumulated interest and other charges 
are paid in full.
    (4) The date on which administrative offset will be effected, unless 
the creditor agency determines immediate action is necessary under Sec. 
3.26, or the debtor enters into a repayment agreement or requests a 
review.
    (5) That the debtor has a right to inspect and copy agency or other 
Department records related to the debt. The debtor must pay copying 
costs unless they are waived by the agency.
    (6) That the debtor may enter into a written agreement to repay the 
debt, which must be approved by the creditor agency.
    (7) That the debtor has a right to obtain review of the agency's 
determination that the debt exists and the propriety of administrative 
offset.
    (8) That a repayment agreement or request for review may be sought 
only from the creditor agency and not the offsetting agency.
    (9) Time limitations and other procedures or conditions imposed by 
the agency.
    (10) The address to which the debtor should send all correspondence 
relating to the offset.
    (c) Any demand for payment will include a Notice of Intent to 
Collect by Administrative Offset, even if the debt is not delinquent at 
the time the letter is sent.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990; 
62 FR 60451, Nov. 10, 1997]