[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: 14CFR1261.411]



[Page 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. 1261.411  Collection in installments.



    (a) Whenever feasible, and except as otherwise provided by law, 

debts owed to the United States, together with interest penalties, and 

administrative costs as required by Sec. 1261.412, should be collected 

in full in one lump sum. This is true whether the debt is being 

collected by administrative offset or by another method, including 

voluntary payment. However, if the debtor is financially unable to pay 

the indebtedness in one lump sum, payment may be accepted in regular 

installments. Debtors who represent that they are unable to pay the debt 

in one lump sum must submit financial statements. If NASA agrees to 

accept payment in regular installments, it will obtain a legally 

enforceable written agreement from the debtor which specifies all of the 

terms of the arrangement and which contains a provision accelerating the 

debt in the event the debtor defaults. The size and frequency of 

installment payments should bear a reasonable relation to the size of 

the debt and the debtor's ability to pay. If possible, the installment 

payments should be sufficient in size and frequency to liquidate the 

Government's claim in not more than 3 years. Installment payments of 

less than $50 per month should be accepted only if justifiable on the 

grounds of financial hardship or for some other reasonable cause. If the 

claim is unsecured, an executed confess-judgment note, comparable to the 

Department of Justice Form USA-70a, should be obtained from a debtor 

when the total amount of the deferred installments will exceed $750. 

Such notes may be sought when an unsecured obligation of a lesser amount 

is involved. When attempting to obtain confess-judgment notes, the 

debtor should be provided with written explanation of the consequences 

of signing the note, and documentation should be maintained sufficient 

to demonstrate that the debtor has signed the note knowingly and 

voluntarily. Security for deferred payments other than a confess-

judgment note may be accepted in appropriate cases. NASA, at its option, 

may accept installment payments notwithstanding the refusal of a debtor 

to execute a confess-judgment note or to give other security.

    (b) If the debtor owes more than one debt and designates how a 

voluntary installment payment is to be applied as among those debts, 

that designation must be followed. If the debtor does not designate the 

application of the payment, agencies should apply payments to the 

various debts in accordance with the best interests of the United 

States, as determined by the facts and circumstances of the particular 

case, paying special attention to applicable statutes of limitations.



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