[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: 14CFR1261.417]



[Page 352-354]

 

                     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. 1261.417  Referral to Department of Justice (DJ) or General 

Accounting Office (GAO).



    (a) Prompt referral. Except as provided in paragraphs (b) and (c) of 

this section, claims on which aggressive collection action has been 

taken in accordance with Sec. 1261.406 and which cannot be compromised, 

or on which collection action cannot be suspended or terminated, in 

accordance with Sec. Sec. 1261.414 and 1261.416, shall be promptly 

referred to the Department of Justice for litigation.

    (1) Claims for which the gross original amount is over $200,000 

shall be referred to the Commercial Litigation Branch, Civil Division, 

Department of Justice, Washington, DC 20530.

    (2) Claims for which the gross original amount is $200,000 or less 

shall be referred to the United States Attorney in whose judicial 

district the debtor can be found. Referrals should be made as early as 

possible, consistent with aggressive agency collection action and the 

observance of the regulations contained in this subpart, and in any



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event, well within the period for bringing a timely suit aqainst the 

debtor. Ordinarily, referrals should be made within l year of the 

agency's final determination of the fact and the amount of the debt.

    (3) Minimum amount. NASA is not to refer claims of less than $600, 

exclusive of interest, penalties, and administrative costs, for 

litigation unless:

    (i) Referral is important to a significant enforcement policy; or

    (ii) The debtor not only has the clear ability to pay the claim but 

the Government can effectively enforce payment, having due regard for 

the exemptions available to the debtor under State and Federal law and 

the judicial remedies available to the Government.

    (b) Claims arising from audit exceptions taken by the GAO to 

payments made by agencies must be referred to the GAO for review and 

approval prior to referral to the Department of Justice for litigation, 

unless NASA has been granted an exception by the GAO. Referrals shall 

comply with instructions, including monetary limitations, contained in 

the GAO Policy and Procedures Manual for Guidance to Federal Agencies 

and paragraphs (e) and (f) of this section.

    (c) When the merits of the claim, the amount owed on the claim, or 

the propriety of acceptance of a proposed compromise, suspension, or 

termination are in doubt, the designated official should refer the 

matter to the General Accounting Office for resolution and instructions 

prior to proceeding with collection action and/or referral to the 

Department of Justice for litigation.

    (d) Once a claim has been referred to GAO or to the Department of 

Justice pursuant to this section, NASA shall refrain from having any 

contact with the debtor about the pending claim and shall direct the 

debtor to GAO or to the DJ, as appropriate, when questions concerning 

the claim are raised by the debtor. GAO or the DJ, as appropriate, shall 

be immediately notified by NASA of any payments which are received from 

the debtor subsequent to referral of a claim under this section.

    (e) Claims Collection Litigation Report (CCLR). Unless an exception 

has been granted by the Department of Justice in consultation with the 

General Accounting Office, the Claims Collection Litigation Report 

(CCLR), which was officially implemented by NASA, effective March 1, 

1983, shall be used with all referrals of administratively uncollectible 

claims. As required by the CCLR, the following information must be 

included:

    (1) Report of prior collection actions. A checklist or brief summary 

of the actions previously taken to collect or compromise the claim. If 

any of the administrative collection actions have been omitted, the 

reason for their omission must be provided. GAO, the United States 

Attorney, or the Civil Division of the Department of Justice may return 

claims at their option when there is insufficient justification for the 

omission of one or more of the administrative collection actions 

enumerated in this subpart (see 4 CFR part 102).

    (2) Current address of debtor. The current address of the debtor, or 

the name and address of the agent for a corporation upon whom service 

may be made. Reasonable and appropriate steps will be taken to locate 

missing parties in all cases. Referrals to the Department of Justice for 

the commencement of foreclosure of other proceedings, in which the 

current address of any party is unknown, will be accompanied by a 

listing of the prior known addresses of such party and a statement of 

the steps taken to locate that party.

    (3) Credit data. Reasonably current credit data which indicates that 

there is a reasonable prospect of effecting enforced collection from the 

debtor, having due regard for the exemptions available to the debtor 

under State and Federal law and the judicial remedies available to the 

Government. Such credit data may take the form of:

    (i) A commercial credit report;

    (ii) An agency investigative report showing the debtor's assets, 

liabilities, income, and expenses;

    (iii) The individual debtor's own financial statement executed under 

penalty of perjury reflecting the debtor's assets, liabilities, income, 

and expenses; or

    (iv) An audited balance sheet of a corporate debtor.

    (4) Reasons for credit data omissions. The credit data may be 

omitted if:



[[Page 354]]



    (i) A surety bond is available in an amount sufficient to satisfy 

the claim in full;

    (ii) The forced sale value of the security available for application 

to the Government's claim is sufficient to satisfy the claim in full;

    (iii) NASA wishes to liquidate loan collateral through judicial 

foreclosure but does not desire a deficiency judgment;

    (iv) The debtor is in bankruptcy or receivership;

    (v) The debtor's liability to the Government is fully covered by 

insurance, in which case NASA will furnish such information as it can 

develop concerning the identity and address of the insurer and the type 

and amount of insurance coverage; or

    (vi) The status of the debtor is such that credit data is not 

normally available or cannot reasonably be obtained, for example, a unit 

of State or local government.

    (f) Preservation of evidence. Care will be taken to preserve all 

files, records, and exhibits on claims referred or to be referred to the 

Department of Justice for litigation. Under no circumstances should 

original documents be sent to the Department of Justice or the United 

States Attorney without specific prior approval to do so. Copies of 

relevant documents should be sent whenever necessary.