Claims on which collection action has been taken in accordance with Part 102 of this chapter and which cannot be compromised, or on which collection action cannot be suspended or terminated, in accordance with Parts 103 and 104 of this chapter, will be referred to the General Accounting Office in accordance with R.S. 236, as amended, 31 U.S.C. 71, or to the Department of Justice, if the agency concerned has been granted an exception from referrals to the General Accounting Office. Such referrals should be made as early as possible consistent with aggressive agency collection action and the observance of the regulations contained in this chapter and in any event well within the time limited for bringing a timely suit against the debtor. § 105.2 Current address of debtor.

Referrals to the General Accounting Office, and to the Department of Justice for litigation, will be accompanied by the current address of the debtor or the name and address of the agent for a corporation upon whom service may be made. Reasonable and appropriate steps will be taken to locate missing parties in all cases. Referrals to the General Accounting Office, and referrals to the Department of Justice for the institution of foreclosure or other proceedings, in which the current address of any party is unknown will be accompanied by a listing of the prior known addresses of such a party and a statement of the steps taken to locate him.

(a) Claims referred to the General Accounting Office, and to the Department of Justice for litigation, will be accompanied by reasonably current credit data indicating that there is a reasonable prospect of effecting enforced collections from the debtor, having due regard for the exemptions available to the debtor under State and Federal law and the judicial remedies available to the Government.

(b) Such credit data may take the form of (1) a commercial credit report, (2) an agency investigative report showing the debtor's assets and liabilities and his income and expenses, (3) the individual debtor's own financial statement executed under penalty of perjury reflecting his assets and liabilities and his income and expenses, or (4) an audited balance sheet of a corporate debtor.

(c) Such credit data may be omitted if (1) a surety bond is available in an amount sufficient to satisfy the claim in full, (2) the forced sale value of the security available for application to the Government's claim is sufficient to satisfy its claim in full, (3) the referring agency wishes to liquidate loan collateral through judicial foreclosure but does not desire a deficiency judgment, (4) the debtor is in bankruptcy or receivership, or (5) the debtor's liability to the Government is fully covered by insurance, in which case the agency will furnish such information as it can develop concerning the identity and address of the insurer and the type and amount of insurance coverage.

§ 105.4 Report of prior collection actions.

A checklist or brief summary of the actions previously taken to collect or compromise a claim will be forwarded with the claim upon its referral to the General Accounting Office or to the Department of Justice. If any of the administrative collection actions enumerated in Part 102 of this chapter have been omitted, the reason for their omission will be given with the referral. The General Accounting Office and the Department of Justice may return or retain claims at their option when there is in

§ 201.1

Prescription of standards.

The regulations in this chapter issued by the Comptroller General of the United States under Public Law 90-616, approved October 21, 1968, 82 Stat. 1212, which amended subchapter VIII of chapter 55 of title 5, United States Code by adding a new section, section 5584, prescribe standards for the waiver of claims of the United States against a person arising out of an erroneous payment of pay, on or after July 1, 1960, to an employee of an executive agency, the collection of which would be against equity and good conscience and not in the best interests of the United States. § 201.2

Definitions.

In this chapter:

(a) "Employee" means an employee as defined in 5 U.S.C. 5581 who is or was employed in a civilian capacity by an executive agency as defined in 5 U.S.C. 105.

(b) "Pay" means salary, wages, pay, compensation, emoluments, and remuneration for services. It includes overtime pay; night, Sunday standby, irregular and hazardous duty differential; pay for Sunday and holiday work; payment for accumulated and accrued leave; and severance pay. It does not include expenses of travel and transportation or expenses of transportation of household goods.

(c) Employees of the Architect of the Capitol, the Government Printing Office, the U.S. Botanic Garden and other employees of the legislative branch of the Government except employees of the General Accounting Office.

(d) Employees of the Administrative Office of the U.S. Courts, the Federal Judicial Center, and other employees of the judicial branch.

§ 201.4

Waiver of claims for erroneous payment of pay.

(a) The Comptroller General of the United States may waive in whole or in part a claim of the United States in any amount arising out of an erroneous payment of pay to an employee when all of the conditions set out in § 201.5 are present. Claims referred to the Attorney General for litigation will not be considered for waiver by the Comptroller General of the United States without first having obtained permission from the Attorney General.

(b) The head of an executive agency may waive in whole or in part a claim of the United States in an amount aggregating not more than $500. without regard to any repayments, against any person arising out of an erroneous payment of pay to an employee of such agency when all of the conditions set out in § 201.5 are present except that he may not waive such a claim which is the subject of an exception made by the Comptroller General in the account of any accountable official, or, which has been transmitted to the General Accounting Office for collection or to the Attorney General for litigation.

§ 201.5 Conditions for waiver of claims.

Claims of the United States arising out of an erroneous payment of pay may be waived in whole or in part in accordance with the provisions of § 201.4 whenever:

(a) The claim arises out of an erroneous payment of pay made to an employee of an executive agency on or after July 1, 1960, except that waiver action may not be taken under the provisions of these regulations after the expiration of 3 years immediately following the date on which the erroneous payment of pay was discovered or after October 21, 1971, whichever is later.