[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR608.839]

[Page 44-45]
 
                       TITLE 12--BANKS AND BANKING
 
                 CHAPTER VI--FARM CREDIT ADMINISTRATION
 
PART 608_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
                     Subpart C_Offset Against Salary
 
Sec. 608.839  Procedures for salary offset.

    (a) The Chairman, or designee of the Chairman, shall determine the 
amount of an employee's disposable pay and the amount to be deducted 
from the employee's disposable pay at regular pay intervals.
    (b) Deductions shall begin within three official pay periods 
following the date of mailing or delivery of the Notice of Intent to 
Collect by Salary Offset.

[[Page 45]]

    (c)(1) If the amount of the debt is equal to or is less than 15 
percent of the employee's disposable pay, such debt should be collected 
in one lump-sum deduction.
    (2) If the amount of the debt is not collected in one lump-sum 
deduction, the debt shall be collected in installment deductions over a 
period of time not greater than the anticipated period of employment. 
The size and frequency of installment deductions will bear a reasonable 
relation to the size of the debt and the employee's ability to pay. 
However, the amount deducted from any pay period will not exceed 15 
percent of the employee's disposable pay for that period, unless the 
employee has agreed in writing to the deduction of a greater amount.
    (3) A deduction exceeding the 15-percent disposable pay limitation 
may be made from any final salary payment pursuant to 31 U.S.C. 3716 in 
order to liquidate the debt, whether the employee is being separated 
voluntarily or involuntarily.
    (4) Whenever an employee subject to salary offset is separated from 
the FCA and the balance of the debt cannot be liquidated by offset of 
the final salary check pursuant to 31 U.S.C. 3716, the FCA may offset 
any later payments of any kind against the balance of the debt.
    (d) In instances where two or more creditor agencies are seeking 
salary offsets against current employees of the FCA or where two or more 
debts are owed to a single creditor agency, the FCA, at its discretion, 
may determine whether one or more debts should be offset simultaneously 
within the 15-percent limitation. Debts owed to the FCA should generally 
take precedence over debts owed to other agencies.