§ 101.15. Penalties on default.
454 words·~2 min read·
/us/cfr/t25/s§ 101.15·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Unless otherwise provided in the loan agreement between the United States and a borrower, failure on the part of a borrower to conform to the terms of the loan agreement will be deemed grounds for the taking of any one or all of the following steps by the Commissioner:
(a)Discontinue any further advance of funds contemplated by the loan agreement.
(b)Take possession of any or all collateral given as security and in the case of individuals, corporation, partnerships or cooperative associations, the property purchased with the borrowed funds.
(c)Prosecute legal action against the borrower or against officers of corporations, tribes, bands, credit associations, cooperative associations, and other organizations.
(d)Declare the entire amount advanced immediately due and payable.
(e)Prevent further disbursement of credit funds under the control of the borrower.
(f)Withdraw any unobligated funds from the borrower.
(g)Require relending organizations conducting a relending program to apply all collections on loans to liquidate the debt to the United States.
(h)Take possession of the assets of a relending organization conducting a relending program and exercise or arrange to exercise its powers until the Commissioner has received acceptable assurance of its repayment of the revolving loan and compliance with the provisions of the terms of the loan agreement.
(i)Liquidate, operate or arrange for the operation of economic enterprises financed with revolving loans made to individuals, tribes, corporations, partnerships and cooperative associations until the indebtedness is paid or until the Commissioner has received acceptable assurance of its repayment and compliance with the terms of the loan agreement.
(j)Report the name and account information of a delinquent borrower to a credit bureau.
(k)Assess additional interest and penalty charges for the period of time that payment is not made.
(l)Assess charges to cover additional administrative costs incurred by the Government to service the account.
(m)Offset amounts owed the borrower under other Federal programs including other programs administered by the Bureau of Indian Affairs.
(n)Refer the account to a private collection agency to collect the amount due.
(o)Refer the account to the U.S. Department of Justice for collection by litigation.
(p)If the borrower is a current or retired Federal employee, take action to offset the borrower's salary or civil service retirement benefits.
(q)Refer the debt to the Internal Revenue Service for offset against any amount owed the borrower as an income tax refund.
(r)Report any written-off debt to the Internal Revenue Service as taxable income to the borrower.
(s)Recommend suspension or debarment from conducting further business with the Federal Government. \[40 FR 3587, Jan. 23, 1975. Redesignated at 47 FR 13327, Mar. 30, 1982, as amended at 57 FR 46472, Oct. 8, 1992\]