[Code of Federal Regulations]

[Title 44, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 44CFR11.42]



[Page 118-119]

 

              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE

 

 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 

                                SECURITY

 

PART 11_CLAIMS--Table of Contents

 

     Subpart C_Collection of Debts by the Government Under the Debt 

                         Collection Act of 1982

 

Sec. 11.42  Demand for payment of debts.



    (a) Initial demand. An initial demand shall be made in writing and 

sent by certified mail, return receipt requested, or delivered by hand 

to the debtor identifying the debt and advising that the full amount due 

should be paid by a specified date, not less than 30 days from the date 

of mailing or the



[[Page 119]]



hand delivery. If the debtor is other than a State or local government 

or an agency of the United States, the initial demand notice shall also 

advise the debtor that interest, calculated at rates provided by 31 

U.S.C. 3717(a), shall be assessed if the debt is not paid in full by the 

due date. Interest shall be charged on the outstanding balance due at 

the rate prescribed by the Secretary of the Treasury in accordance with 

31 U.S.C. 3717(a), beginning on the date that the first notice was 

mailed to the debtor. The debtor shall also be advised that if any 

portion of the debt remains unpaid for 90 days after the due date, 

without a repayment schedule satisfactory to the Agency being arranged, 

then additional penalties, as described in 31 U.S.C. 3717(e)(2), of 6 

percent per year shall be charged on the unpaid balance of principal and 

interest.

    (b) Subsequent demands. If the debt is not paid by the due date or 

if a repayment program acceptable to the ACO, has not been arranged with 

the debtor, then an initial demand shall be made followed by two 

progressively stronger written demands at not more than 30-day 

intervals, will be made unless a response to the initial or subsequent 

demands indicates that further demands would be futile and that the 

debtor's response does not require rebuttal.

    (c) Debts arising from contracts executed on or before October 25, 

1982. If the claim arises from a contract executed before October 25, 

1982, then the initial and subsequent demands shall mention nothing 

about the imposition of penalties or interest, prior to rendering of 

judgment by a court of competent jurisdiction.

    (d) Waiver of subsequent written demands. If there is valid reason, 

the sending of second and third demand letters may be waived. Such 

reasons may include, but are not be limited to, statute of limitations 

being about to run.



[49 FR 38267, Sept. 28, 1984, as amended at 53 FR 47211, Nov. 22, 1988; 

57 FR 54715, Nov. 20, 1992]