[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: 24CFR17.74]



[Page 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.  17.74  Standards for suspension or termination of collection action.



    (a) Suspension of collection action. Collection action shall be 

suspended temporarily on a claim when the debtor cannot be located after 

diligent effort but there is reason to believe that future collection 

action may be sufficiently productive to justify periodic review and 

action on the claim, having consideration for its size and the amount 

which may be realized. Collection action may be suspended temporarily on 

a claim when the debtor owns no substantial equity in realty and is 

presently unable to make payment on the Department's claim or effect a 

compromise, but his future prospects justify retention of the claim for 

periodic review and action and (1) the applicable statute of limitations 

has been tolled or started anew or (2) future collection can be effected 

by offset notwithstanding the statute of limitations. Suspension as to a 

particular debtor should not defer the early liquidation of security for 

the debt.

    (b) Termination of collection action. Collection action may be 

terminated and the Department file closed for the following reasons: (1) 

No substantial amount can be collected; (2) the debtor cannot be 

located; (3) the cost will exceed recovery; (4) the claim is legally 

without merit; or (5) the claim cannot be substantiated by evidence.