[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: 31CFR901.8]



[Page 966]

 

                  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. 901.8  Collection in installments.



    (a) Whenever feasible, agencies shall collect the total amount of a 

debt in one lump sum. If a debtor is financially unable to pay a debt in 

one lump sum, agencies may accept payment in regular installments. 

Agencies should obtain financial statements from debtors who represent 

that they are unable to pay in one lump sum and independently verify 

such representations whenever possible (see Sec. 902.2(g) of this 

chapter). Agencies that agree to accept payments in regular installments 

should obtain a legally enforceable written agreement from the debtor 

that specifies all of the terms of the arrangement and that contains a 

provision accelerating the debt in the event of default.

    (b) The size and frequency of installment payments should bear a 

reasonable relation to the size of the debt and the debtor's ability to 

pay. If possible, the installment payments should be sufficient in size 

and frequency to liquidate the debt in three years or less.

    (c) Security for deferred payments should be obtained in appropriate 

cases. Agencies may accept installment payments notwithstanding the 

refusal of the debtor to execute a written agreement or to give 

security, at the agency's option.