[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR901.6]



[Page 965]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

   CHAPTER IX--FEDERAL CLAIMS COLLECTION STANDARDS (DEPARTMENT OF THE 

                    TREASURY--DEPARTMENT OF JUSTICE)

 

PART 901_STANDARDS FOR THE ADMINISTRATIVE COLLECTION OF CLAIMS--Table 

of Contents

 

Sec. 901.6  Suspension or revocation of eligibility for loans and loan 

guaranties, licenses, permits, or privileges.



    (a) Unless waived by the head of the agency, agencies are not 

permitted to extend financial assistance in the form of a loan, loan 

guarantee, or loan insurance to any person delinquent on a nontax debt 

owed to a Federal agency. This prohibition does not apply to disaster 

loans. The authority to waive the application of this section may be 

delegated to the Chief Financial Officer and redelegated only to the 

Deputy Chief Financial Officer of the agency. Agencies may extend credit 

after the delinquency has been resolved. The Secretary may exempt 

classes of debts from this prohibition and has prescribed standards 

defining when a ``delinquency'' is ``resolved'' for purposes of this 

prohibition. See 31 CFR 285.13 (Barring Delinquent Debtors From 

Obtaining Federal Loans or Loan Insurance or Guarantees).

    (b) In non-bankruptcy cases, agencies seeking the collection of 

statutory penalties, forfeitures, or other types of claims should 

consider the suspension or revocation of licenses, permits, or other 

privileges for any inexcusable or willful failure of a debtor to pay 

such a debt in accordance with the agency's regulations or governing 

procedures. The debtor should be advised in the agency's written demand 

for payment of the agency's ability to suspend or revoke licenses, 

permits, or privileges. Any agency making, guaranteeing, insuring, 

acquiring, or participating in, loans should consider suspending or 

disqualifying any lender, contractor, or broker from doing further 

business with the agency or engaging in programs sponsored by the agency 

if such lender, contractor, or broker fails to pay its debts to the 

Government within a reasonable time or if such lender, contractor, or 

broker has been suspended, debarred, or disqualified from participation 

in a program or activity by another Federal agency. The failure of any 

surety to honor its obligations in accordance with 31 U.S.C. 9305 should 

be reported to the Treasury. The Treasury will forward to all interested 

agencies notification that a surety's certificate of authority to do 

business with the Government has been revoked by the Treasury.

    (c) The suspension or revocation of licenses, permits, or privileges 

also should extend to Federal programs or activities that are 

administered by the states on behalf of the Federal Government, to the 

extent that they affect the Federal Government's ability to collect 

money or funds owed by debtors. Therefore, states that manage Federal 

activities, pursuant to approval from the agencies, should ensure that 

appropriate steps are taken to safeguard against issuing licenses, 

permits, or privileges to debtors who fail to pay their debts to the 

Federal Government.

    (d) In bankruptcy cases, before advising the debtor of an agency's 

intention to suspend or revoke licenses, permits, or privileges, 

agencies should seek legal advice from their agency counsel concerning 

the impact of the Bankruptcy Code, particularly 11 U.S.C. 362 and 525, 

which may restrict such action.