[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

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

[CITE: 24CFR17.72]



[Page 216-217]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 17_ADMINISTRATIVE CLAIMS--Table of Contents

 

   Subpart C_Procedures for the Collection of Claims by the Government

 

Sec.  17.72  Methods of collection and imposition of late charges.



    (a) Demand for payment. Appropriate written demands shall be made 

upon the debtor which shall include information relating to the 

consequences of his failure to cooperate.

    (b) Methods of collection: Administrative and salary offset. The 

Department may use administrative offset and salary offset procedures as 

alternative methods for the collection of money owed the Department from 

those set out in this section. For specific procedures on administrative 

offset see Sec. Sec.  17.100 through 17.118. For specific procedures on 

salary offset see Sec. Sec.  17.125 through 17.140.

    (c) Method of collection: Liquidation of collateral. Where the 

Department holds security or collateral that may be liquidated and the 

proceeds applied on debts due it through the exercise of a power of sale 

in the security instrument, such procedures will be followed if the 

debtor fails to pay his or her debt within a reasonable time after 

demand, unless the cost of disposing of the collateral will be 

disproportionate to its value, or unless special circumstances require 

judicial foreclosure.



[[Page 217]]



    (d) Collection in installments. Claims with accrued interest should 

be collected in full in one lump sum whenever this is possible. However, 

if the debtor is financially unable to pay the indebtedness in one lump 

sum, payment may be accepted in regular installments.

    (e) Interest. Where prejudgment interest is not mandated by statute, 

contract or regulation, the minimum rate of interest to be charged on 

delinquent debts is the Tax and Loan Account Rate for the U.S. Treasury 

(also known as the Current Value of Funds rate) as prescribed and 

published semiannually by the Secretary of the Treasury in the Federal 

Register, in accordance with 31 U.S.C. 3717. Prejudgment interest may be 

waived as an inducement to voluntary payment. In such cases demand 

letters should inform the debtor that prejudgment interest will be 

collected if suit becomes necessary. When a debt is paid in installments 

and interest is collected, installment payments will first be applied to 

the payment of accrued interest and then to principal unless a different 

rule is prescribed by statute, contract or regulation. Prejudgment 

interest shall not be demanded or collected on civil penalty and 

forfeiture claim unless the statute under which the claim arises 

authorizes the collection of such interest.

    (f) Omission not a defense. Failure of HUD to comply with any 

standard prescribed in 4 CFR parts 101 through 105 or in this subpart 

shall not be available as a defense to any debtor.



[36 FR 24427, Dec. 22, 1971. Redesignated and amended at 49 FR 32349, 

32350, Aug. 14, 1984; 59 FR 34580, July 6, 1994]