[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-55.015]

[Page 411]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-55_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Sec. 105-55.015  Collection in installments.

    (a) Whenever feasible, the General Services Administration (GSA) 
will 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, GSA may accept payment 
in regular installments. GSA may obtain financial statements from 
debtors who represent they are unable to pay in one lump sum and 
independently verify such representations whenever possible (see Sec. 
105-55.020(g)). When GSA agrees to accept payments in regular 
installments, a legally enforceable written agreement from the debtor 
will be obtained specifying all of the terms of the arrangement and 
containing a provision accelerating the debt in the event of default. If 
the debtor's financial statement discloses the ownership of assets which 
are free and clear of liens or security interests, or assets in which 
the debtor owns an equity, the debtor may be asked to secure the payment 
of an installment note by executing a Security Agreement and Financing 
Statement transferring to the United States a security interest in the 
asset until the debt is paid.
    (b) The size and frequency of installment payments will bear a 
reasonable relation to the size of the debt and the debtor's ability to 
pay. The installment payments will be sufficient in size and frequency 
to liquidate the debt in three years or less, unless circumstances 
warrant a longer period.
    (c) Security for deferred payments may be obtained in appropriate 
cases. GSA may accept installment payments notwithstanding the refusal 
of the debtor to execute a written agreement or to give security, at the 
Agency's option.