Will a debtor who owes a Treasury debt be ineligible for Federal loan
assistance or Federal licenses, permits or privileges?
(a) Delinquent debtors barred from obtaining Federal loans or loan
insurance or guaranties. As required by 31 U.S.C. 3720B and 31 CFR 901.6 ,
Treasury entities will not extend financial assistance in the form of a loan, loan
guarantee, or loan insurance to any person delinquent on a debt owed to a Federal
agency. This prohibition does not apply to disaster loans. Treasury entities may
extend credit after the delinquency has been resolved. See 31 CFR 285.13 for
standards defining when a “delinquency” is “resolved” for purposes of this
(b) Suspension or revocation of eligibility for licenses, permits, or
privileges. Unless prohibited by law, Treasury entities should suspend or
revoke licenses, permits, or other privileges for any inexcusable or willful failure
of a debtor to pay a debt. The Treasury entity responsible for distributing the
licenses, permits, or other privileges will establish policies and procedures
governing suspension and revocation for delinquent debtors. If applicable, Treasury
entities will advise the debtor in the notice required by § 5.4 of this part of the
Treasury entities' ability to suspend or revoke licenses, permits or privileges. See § 5.4(a)(16) of this part.
Title 31 published on 2012-07-01
no entries appear in the Federal Register after this date.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.