have the option of obtaining possession of the property or a monetary amount up to the lienholder's net equity following the sale of the property. Within 20 days following the granting of the petition, the petitioner can obtain possession of the property after paying the costs and expenses incident to the seizure and forfeiture or an amount by which the appraised value exceeds the petitioner's net equity, whichever is greater.

(3) Where the lienholder does not comply with the conditions imposed upon the release of the property, the property is to be sold after forfeiture. From the proceeds of the sale all costs incident to the seizure, forfeiture and sale shall first be deducted, and the balance up to the net equity shall be paid to the petitioner.

(c) Where a complaint for forfeiture has been filed with the District Court, but no judgment of forfeiture has been ordered, a lienholder shall also be required to furnish the U.S. Attorney with:

(1) An instrument executed by the registered owner and any other known claimant of an interest in the property, if they are not in default, releasing their interest in such property, or

(2) If the registered owner or any other known claimant is in default, an agreement to save the government, its agents and employees harmless from any and all claims which might result from the grant of remission.

(d) Alternatively, a lienholder may elect to permit the litigation to proceed to judgment. In that event, the court shall be advised that the Department has granted the petition for remission of the forfeiture and shall be requested to recognize the granting of the petition in its order of forfeiture. Alternatively, in administrative forfeitures, or where a judicial forfeiture judgment has been rendered, the lienholder may elect to have the property sold at public sale. Pursuant to either alternative, the proceeds of such sales will be distributed as follows:

(1) Payment to the petitioner of an amount up to his net equity if the proceeds are sufficient after deducting from the gross sales proceeds an amount equal to the government's costs and expenses incident to the sei

zure, forfeiture and sale, including court costs and storage charges, if any;

(2) Payment of such costs and expenses;

(3) Payment of the balance remaining, if any, to the Department of Justice Assets Forfeiture Fund.

(e) If a complaint for forfeiture has not been filed, a petitioner who is a lienholder, in addition to paying an amount equal to all costs and expenses incident to the seizure, including any court costs and accrued storage charges, or an amount by which the appraised value of the property exceeds the net equity therein, whichever is greater, shall:

(1) Furnish an instrument executed by the registered owner and any other known claimant of an interest in the property releasing their interest in such property, or

(2) Furnish an agreement to hold the government, its agents and employees harmless from any and all claims which might result from the grant of remission.

(f) The determining official may impose such other terms and conditions as may be appropriate.

(g) Upon compliance with the terms and conditions of remission or mitigation in cases subject to judicial forfeiture proceedings, the U.S. Attorney shall take appropriate action to effect the release to the petition of the property involved and to dismiss the complaint if one has been filed or otherwise dispose of the matter by forfeiture, sale and distribution of the proceeds therefrom as set forth herein.

(h) In any case, if the owner of record or any other claimant wishes to contest the forfeiture, judicial condemnation of the property shall be consummated, the court shall be apprised of the granting and terms of the remission or mitigation by the Attorney General, and the court shall be requested to frame its decree of forfeiture accordingly.

§ 10.1 Form of registration statement.

Every organization required to submit a registration statement' to the Attorney General for filing in compliance with the terms of section 2 of the act approved October 17, 1940, entitled, "An act to require the registration of certain organizations carrying on activities within the United States, and for other purposes" (Pub. L. 772, 80th Cong.; 18 U.S.C. 2386), and the rules and regulations issued pursuant thereto, shall submit such statement on such forms as are prescribed by the Attorney General. Every statement required to be filed with the Attorney General shall be subscribed

1Filed as a part of the original document. Copies may be obtained from the Department of Justice.

under oath by all of the officers of the organization registering.

§ 10.2 Language of registration statement. Registration statements must be in English if possible. If in a foreign language they must be accompanied by an English translation certified under oath by the translator, before a notary public or other person authorized by law to administer oaths for general purposes as a true and adequate translation. The statements, with the exception of signature, must be typewritten if practicable but will be accepted if written legibly in ink.

§ 10.3 Effect of acceptance of registration statement.

Acceptance by the Attorney General of a registration statement submitted for filing shall not necessarily signify a full compliance with the said act on the part of the registrant, and such acceptance shall not preclude the Attorney General from seeking such additional information as he deems necessary under the requirements of the said act, and shall not preclude prosecution as provided for in the said act for a false statement of a material fact, or the willful omission of a material fact required to be stated therein, or necessary to make the statements made not misleading.

§ 10.4 Date of filing.

The date on which a registration statement properly executed is accepted by the Attorney General for filing shall be considered the date of the filing of such registration statement pursuant to the said act. All statements must be filed not later than thirty days after January 15, 1941.

§ 10.5 Incorporation of papers previously filed.

Papers and documents already filed with the Attorney General pursuant to the said act and regulations issued pursuant thereto may be incorporated by reference in any registration statement subsequently submitted to the Attorney General for filing, provided such papers and documents are adequately identified in the registration

statement in which they are incorporated by reference.

§ 10.6 Necessity for further registration.

The filing of a registration statement with the Attorney General as required by the act shall not operate to remove the necessity for filing a registration statement with the Attorney General as required by the act of June 8, 1938, as amended, entitled "An act to require the registration of certain persons employed by agencies to disseminate propaganda in the United States and for other purposes" (52 Stat. 631, 56 Stat. 248; 22 U.S.C. 611), or for filing a notification statement with the Secretary of State as required by the act of June 15, 1917 (40 Stat. 226).

[13 FR 8292, Dec. 24, 1948]

§ 10.7 Cessation of activity.

The chief officer or other officer of the registrant organization must notify the Attorney General promptly upon the cessation of the activity of the organization, its branches, chapters, or affiliates by virtue of which registration has been required pursuant to the act.

SUPPLEMENTAL REGISTRATION

STATEMENT

§ 10.8 Information to be kept current. A supplemental statement must be filed with the Attorney General within thirty days after the expiration of each period of six months succeeding the original filing of a registration statement. Each supplemental statement must contain information and documents as may be necessary to make information and documents previously filed accurate and current with respect to the preceding six months' period.

§ 10.9 Requirements for supplemental registration statement.

The rules and regulations in this part with respect to registration statements submitted to the Attorney General under section 2 of the said act shall apply with equal force and effect to supplemental registration statements required thereunder to be filed with the Attorney General.

§ 11.1 Delegation of authority.

The Assistant Attorney General for Administration shall exercise the full authority of the Attorney General to develop and administer the Department of Justice pilot program for debt collection by private counsel. This authority shall include, but is not limited to, the authority to set policies and procedures for the program, and to enter into contracts for the retention of private counsel. The Assistant Attorney General for Adminstration can in turn delegate authority regarding debt collection to subordinate officials as appropriate. Existing delegations of authority with respect to settlement determinations on disputed claims shall remain in force. See generally, 28 CFR 0.160 et seq.

$11.2 Pilot program.

The Assistant Attorney General for Administration, in consultation with the Executive Office for United States Attorneys, shall designate the districts that will participate in the pilot program. U.S. Attorneys in the districts chosen for the pilot program, shall direct the full cooperation and assistance of their respective offices in implementing the program. Among other things, the U.S. Attorneys shall designate an Assistant U.S. Attorney to serve as the Contracting Officer's Technical Representative (COTR) on the contracts with private debt collection lawyers in their respective districts. The COTRS will be responsible for assisting the contracting officer by supervising the work of the private counsel in their respective districts and providing necessary approvals with respect to the initiation or settlement of lawsuits or similar matters.

§ 11.3 Compliance with existing laws.

The procurement of the services of private attorneys for debt collection shall be accomplished in accordance with the competitive procurement procedures mandated by Federal law, and set forth in the Federal Property and Administrative Services Act of 1949, 41 U.S.C. 251 et seq. Best efforts shall be made to encourage extensive participation by law firms owned and controlled by socially and economically disadvantaged individuals in the competition for award of these contracts in the pilot districts. Such efforts shall include, at minimum, publication of the requirement for these services in the Commerce Business Daily and in a selection of pertinent legal publications likely to reach socially and economically disadvantaged firms, as well as sending written notice of the requirements to bar associations that have a significant socially and economically disadvantaged membership in the pilot districts. These special recruitment efforts will not authorize or permit preferential consideration to any bidders in selection for award of these contracts. The Department's Office of Small and Disadvantaged Business Utilization shall also make its resources available to assist in encour

aging broad participation in this competition.

Subpart B-[Reserved]

Subpart C-Tax Refund Offsets

11.10 Procedures for tax refund offsets for the collection of judgments.

(a) The Department may refer any past-due, non-paid final civil or criminal judgment debts imposed by a court of the United States against an individual to the Secretary of the Treasury for offset. (Judgments in amounts lower than $25.00 or outstanding for longer than ten years are not subject to referral.)

(b) The Department will provide the civil or criminal judgment debtor with written notice of its intent to offset before initiating the offset. Notice will be mailed to the debtor at the current address of the debtor, as determined from information obtained from the IRS' prior year's tax records or from information regarding the debt maintained by the Department of Justice. The notice sent to the debtor will inform the debtor that:

(1) The civil or criminal judgment debt is past due;

(2) The Department intends to refer the civil or criminal judgment to the Secretary of the Treasury for offset from income tax refunds that may be due to individuals;

(3) The debtor, within 65 days of the date on the written notice, has an opportunity to:

(i) Present evidence that all or part of a civil judgment debt or a criminal fine and/or assessment is not past-due;

(ii) Present evidence that the amount of the civil judgment debt or criminal fine and/or assessment, as reported to the IRS, is not the amount currently owed;

(iii) Present evidence that the judgment debt has been stayed or satisfied.

(4) If the civil or criminal judgment debtor wishes to contest the offset, he or she must present evidence set forth under paragraph (b)(3) of this section by a date specified in the notice. The debtor must present such evidence to the Assistant Attorney General for Administration at the address speci

counterespionage, or sabotage service or tactics of a foreign government or foreign political party.

(b) The term Attorney General means the Attorney General of the United States.

(c) The term rules and regulations refers to all rules, regulations, registration forms, and instruction to forms made and prescribed by the Attorney General pursuant to the act.

(d) The term registration statement means the registration required to be filed with the Attorney General under section 2 of the act.

(e) The term registrant means the person by whom a registration statement is filed pursuant to the provisions of the act.

§ 12.2 Administration of act.

The administration of the act is assigned to the Registration Unit of the Internal Security Section, Criminal Division, Department of Justice. Communications with respect to the act shall be addressed to the Registration Unit Internal Security Section, Criminal Division, Department of Justice, Washington, D.C. 20530. Copies of the act, the regulations contained in this part, including the forms mentioned therein, may be obtained upon request without charge.

[Order No. 524-73, 38 FR 18235, July 9, 1973]

§ 12.3 Prior registration with the Foreign Agents Registration Unit.

No person who has filed a registration statement under the terms of the Foreign Agents Registration Act of 1938, as amended by section 20(a) of the Internal Security Act of 1950, shall be required to file a registration statement under the act, unless otherwise determined by the Chief, Registration Unit.

[21 FR 5928, Aug. 8, 1956, as amended by Order No. 524-73, 38 FR 18235, July 9, 1973; Order No. 960-81, 46 FR 52355, Oct. 27, 1981]