CFR Subpart E

CFR Subpart E
in effect

22 C.F.R. § 213.29 Suspension—general.

The CFO may suspend or terminate the Agency's collection actions on a debt where the outstanding debt principal does not exceed $100,000. Unless otherwise provided by DOJ delegations or procedures, the CFO refers requests for suspension of debts exceeding $100,000 to the Commercial Litigation Branch, Civil Division, Department of Justice, for approval. If prior to referral to DOJ, USAID determines that a debt is plainly erroneous or clearly without legal merit, the agency may terminate collection activity regardless of the amount involved without obtaining DOJ concurrence. The CFO may waive the assessment of interest, penalties, and administrative costs during the period of the suspension. Suspension will be for an established time period and generally will be reviewed at least every six months to ensure the continued propriety of the suspension.

22 C.F.R. § 213.30 Standards for suspension of collection action.

(a) The CFO may suspend collection action on a debt when: (1) The debtor cannot be located; (2) The debtor's financial condition is expected to improve; or (3) The debtor has requested a waiver or review of the debt. (b) Based on the current financial condition of the debtor, the CFO may suspend collection activity on a debt when the debtor's future prospects justify retention of the claim for periodic review, and: (1) The applicable statute of limitations has not expired; or (2) Future collection can be effected by offset, notwithstanding the 10-year statute of limitations for administrative offsets; or (3) The debtor agrees to pay interest on the debt and suspension is likely to enhance the debtor's ability to fully pay the principal amount of the debt with interest at a later date. (c) The CFO will suspend collection activity during the time required for waiver consideration or administrative review prior to agency collection of a debt if the statute under which the request is sought prohibits USAID from collecting the debt during that time. The CFO will ordinarily suspend collection action during the pendency of his or her consideration of a waiver request or administrative review where statute and regulation preclude refund of amounts collected by the Agency should the debtor prevail. (d) The CFO may suspend collection activities on debts of $100,000 or less during the pendency of a permissive waiver or administrative review when there is no statutory requirement and he or she determines that: (1) There is a reasonable possibility that waiver will be granted and the debtor may be found not owing the debt (in whole or in part); (2) The Government's interest is protected, if suspension is granted, by the reasonable assurance that the debt can be recovered if the debtor does not prevail; or (3) Collection of the debt will cause undue hardship to the debtor. (e) The CFO will decline to suspend collection when he or she determines that the request for waiver or administrative review is frivolous, or that the debtor made it primarily to delay collection.

22 C.F.R. § 213.31 Termination—general.

The CFO may terminate collection actions including accrued interest, penalties and administrative costs, where the debt principal does not exceed $100,000. If the debt exceeds $100,000, USAID obtains the approval of DOJ in order to terminate further collection actions. Unless otherwise provided for by DOJ regulations or procedures, requests to terminate collection on debts in excess of $100,000 are referred to the Commercial Litigation Branch, Civil Division, Department of Justice, for approval.

22 C.F.R. § 213.32 Standards for termination of collection action.

The CFO may terminate collection action on a debt when he or she determines that: (a) The Government cannot collect or enforce collection of any significant sum from the debtor, having due regard for available judicial remedies, the debtor's ability to pay, and the exemptions available to the debtor under State and Federal law; (b) The debtor cannot be located, there is no security remaining to be liquidated, and the prospects of collecting by offset are too remote to justify retention of the claim; (c) The cost of further collection action is likely to exceed the amount recoverable; (d) The claim is determined to be legally without merit or enforcement of the debt is barred by any applicable statute of limitations; (e) The evidence necessary to prove the claim cannot be produced or the necessary witnesses are unavailable and efforts to induce voluntary payment have failed; or (f) The debt against the debtor has been discharged in bankruptcy.

22 C.F.R. § 213.33 Permitted actions after termination of collection activity.

Termination of collection activity ceases active collection of the debt. Termination does not preclude the agency from retaining a record of the account for purposes of: (a) Selling the debt if the CFO determines that such sale is in the best interests of USAID; (b) Pursuing collection at a subsequent date in the event there is a change in the debtor's status or a new collection tool becomes available; (c) Offsetting against future income or assets not available at the time of termination of collection activity; or (d) Screening future applicants for prior indebtedness.

22 C.F.R. § 213.34 Debts discharged in bankruptcy.

The CFO generally terminates collection activity on a debt discharged in bankruptcy, regardless of the amount. USAID may continue collection activity, however, subject to the provisions of the Bankruptcy Code for any payments provided under a plan of reorganization. The CFO will seek legal advice by the Office of the USAID General Counsel if he or she believes that any claims or offsets might have survived the discharge of a debtor.

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