[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR240.10]

[Page 89-90]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 240_INDORSEMENT AND PAYMENT OF CHECKS DRAWN ON THE UNITED STATES 
 
Sec.  240.10  Offset.

    (a) If a reclamation debt remains unpaid for 120 days after the 
reclamation date, Treasury will refer the reclamation debt, if eligible, 
to Treasury's centralized offset program (see 31 CFR part 285) or 
another Federal agency for offset in accordance with 31 U.S.C. 3716. 
Prior to making a referral for offset, Treasury, in accordance with 
Sec.  240.9(a)(3), will send at least one monthly statement to the 
reclamation debtor informing the reclamation debtor that Treasury 
intends to collect the reclamation debt by administrative offset and 
Treasury Check Offset.
    (b) If a reclamation debtor wishes to make payment on a reclamation 
debt referred for offset, the reclamation debtor should contact Treasury 
at the address listed in Sec.  240.9(b) to resolve the debt and avoid 
offset.
    (c) If Treasury is unable to collect a reclamation debt by use of 
the offset described in paragraph (a) of this section, Treasury shall 
take such action against the reclamation debtor as may be necessary to 
protect the interests of the United States, including, but not limited 
to, Treasury Check Offset in accordance with Sec.  240.11, or referral 
to the Department of Justice.
    (d) If Treasury effects offset under this section and it is later 
determined that the reclamation debtor already had paid the amount of 
the reclamation debt, or that a reclamation debtor which had timely 
filed a protest was not liable for the amount of the reclamation, 
Treasury will promptly refund to the reclamation debtor the

[[Page 90]]

amount of its payment. Treasury may refund the amount either by applying 
the amount to another reclamation debt owed by the reclamation debtor in 
accordance with this Part or other applicable law, or by returning the 
amount to the reclamation debtor.