[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: 14CFR1261.502]



[Page 354-355]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

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

 

             Subpart 1261.5_Administrative Offset of Claims

 

Sec. 1261.502  Notification procedures.



    (a) Before collecting any claims through administrative offset, a 

30-day written notice must be sent to the debtor by certified mail, 

return receipt requested. The notice must include:

    (1) The nature and amount of the debt;



[[Page 355]]



    (2) NASA's intention to collect by administrative offset; and

    (3) An explanation of the debtor's rights under 31 U.S.C. 3716(a), 

or other relied upon statutory authority, which must include a statement 

that the debtor has the opportunity, within the 30-day notice period, 

to:

    (i) Inspect and copy records of NASA with respect to the debt;

    (ii) Request a review by NASA of its decision related to the claim; 

and

    (iii) Enter into a written agreement with the designated official 

(see Sec. 1261.402) to repay the amount of the claim. However, sound 

judgment should be exercised in determining whether to accept a 

repayment agreement in lieu of offset. The determination should balance 

the Government's interest in collecting the debt against fairness to the 

debtor. If the debt is delinquent and the debtor has not disputed its 

existence or amount, NASA should accept a repayment agreement in lieu of 

offset only if the debtor is able to establish that offset would result 

in undue financial hardship or would be against equity and good 

conscience.

    (b) NASA may effect administrative offset against a payment to be 

made to a debtor prior to the completion of the procedures required by 

paragraph (a) of this section if:

    (1) Failure to take the offset would substantially prejudice the 

Government's ability to collect the debt; and

    (2) The time before the payment is to be made does not reasonably 

permit the completion of those procedures. Such prior offset must be 

promptly followed by the completion of those procedures. Amounts 

recovered by offset but later found not to be owed to the Government 

shall be promptly refunded.

    (3) In cases where the procedural requirements of paragraph (a) of 

this section had previously been provided to the debtor in connection 

with the same debt under some other statutory or regulatory authority, 

such as pursuant to a notice of audit disallowance or salary offset 

under Sec. 1261.603, the agency is not required to duplicate those 

requirements before taking administrative offset.