[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: 7CFR3.26]

[Page 266]
 
                          TITLE 7--AGRICULTURE
 
PART 3_DEBT MANAGEMENT--Table of Contents
 
                        Subpart B_Debt Collection
 
Sec. 3.26  Exceptions to notice requirements.

    (a) When the procedural requirements of Sec. 3.25 have been met by 
the creditor agency or under some other statutory or regulatory 
authority, an agency need not duplicate the notice before effecting 
administrative offset.
    (b) A USDA agency may effect administrative offset against a payment 
to be made to a debtor before completion of the procedures in Sec. 3.25 
when the agency finds, or is advised by the requesting creditor agency, 
that:
    (1) Failure to take the offset would substantially prejudice the 
Government's ability to collect the debt, such as where possible 
insolvency of the debtor might encourage competition among creditors for 
funds, or where expiration of a statute of limitations is imminent; and
    (2) The time before the payment is to be made does not reasonably 
permit the completion of these procedures.
    (c) The finding required by paragraph (b) of this section must be 
furnished by the offsetting agency to the debtor in writing as soon as 
reasonably possible after the offset is effected. Promptly after 
administrative offset is effected under this subsection, the creditor 
agency must give the debtor the notice required by Sec. 3.25.
    (d) An offsetting USDA agency may rely on the information contained 
in a creditor agency's request for administrative offset under this 
section.