[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

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

[CITE: 14CFR1261.410]



[Page 345-346]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

PART 1261_PROCESSING OF MONETARY CLAIMS (GENERAL)--Table of Contents

 

 Subpart 1261.4_Collection of Civil Claims of the United States Arising 

      Out of the Activities of the National Aeronautics and Space 

                          Administration (NASA)

 

Sec. 1261.410  Suspension or revocation of license or eligibility; 

liquidation of collateral.



    (a) In seeking the collection of statutory penalties, forfeitures, 

or debts provided for as an enforcement aid or for compelling 

compliance, NASA will give serious consideration to the suspension or 

revocation of licenses or other privileges for any inexcusable, 

prolonged, or repeated failure of a debtor to pay such a claim. In the 

case of a contractor under 48 CFR chapter 18, NASA will comply with the 

debarment, suspension, and ineligibility requirements of the NASA 

Federal Acquisition Regulation Supplement (NASA/FAR Supplement) at 48 

CFR 1809.4. Likewise, in making, guaranteeing, insuring, acquiring, or 

participating in loans, NASA will give serious



[[Page 346]]



consideration to suspending or disqualifying any lender, contractor, 

broker, borrower, or other debtor from doing further business with it or 

engaging in programs sponsored by it if such a debtor fails to pay its 

debts to the Government within a reasonable time. The failure of any 

surety to honor its obligations in accordance with 31 U.S.C. 9305 must 

be reported to the Treasury Department at once. Notification that a 

surety's certificate of authority to do business with the Federal 

Government has been revoked or forfeited by the Treasury Department will 

be forwarded by that Department to all interested agencies.

    (b) If NASA is holding security or collateral which may be 

liquidated and the proceeds applied on debts due it through the exercise 

of a power of sale in the security instrument or a nonjudicial 

foreclosure, it should do so by such procedures if the debtor fails to 

pay the debt within a reasonable time after demand, unless the cost of 

disposing of the collateral will be disproportionate to its value or 

special circumstances require judicial foreclosure. NASA will provide 

the debtor with reasonable notice of the sale, an accounting of any 

surplus proceeds, and any other procedures required by applicable 

contract or law. Collection from other sources, including liquidation of 

security or collateral, is not a prerequisite to requiring payment by a 

surety or insurance concern unless such action is expressly required by 

statute or contract.