[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR608.821]



[Page 42-43]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 608_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents

 

                     Subpart B_Administrative Offset

 

Sec. 608.821  Collection by offset.



    (a) Collection of a debt by administrative [or salary] offset shall 

be accomplished in accordance with the provisions of these regulations, 

of 4 CFR 102.3, and 5 CFR part 550, subpart K. It is not necessary for 

the debt to be reduced to judgment or to be undisputed for offset to be 

used.



[[Page 43]]



    (b) The Chairman, or designee of the Chairman, may determine that it 

is feasible to collect a debt to the United States by offset against 

funds payable to the debtor.

    (c) The feasibility of collecting a debt by offset will be 

determined on a case-by-case basis. This determination shall be made by 

considering all relevant factors, including the following:

    (1) The degree to which the offset can be accomplished in accordance 

with law. This determination should take into consideration relevant 

statutory, regulatory, and contractual requirements;

    (2) The degree to which the FCA is certain that its determination of 

the existence and amount of the debt is correct;

    (3) The practicality of collecting the debt by offset. The cost, in 

time and money, of collecting the debt by offset and the amount of money 

which can reasonably be expected to be recovered through offset will be 

relevant to this determination; and

    (4) Whether the use of offset will substantially interfere with or 

defeat the purpose of a program authorizing payments against which the 

offset is contemplated. For example, under a grant program in which 

payments are made in advance of the grantee's performance, the 

imposition of offset against such a payment may be inappropriate.

    (d) The collection of a debt by offset may not be feasible when 

there are circumstances which would indicate that the likelihood of 

collection by offset is less than probable.

    (e) The offset will be effected 31 days after the debtor receives a 

Notice of Intent to Collect by Administrative Offset (or Notice of 

Intent to Collect by Salary Offset if the offset is a salary offset), or 

upon the expiration of a stay of offset, unless the FCA determines under 

Sec. 608.824 that immediate action is necessary.

    (f) If the debtor owes more than one debt, amounts recovered through 

offset may be applied to them in any order. Applicable statutes of 

limitation would be considered before applying the amounts recovered to 

any debts owed.