# Servicing and Collections-Unauthorized Recipients of Financial Assistance
> **Rural Housing Service** · Final rule. · Published 2006-12-19 · Effective 2006-12-19 · 71 FR 75851
## Document
- **Document number:** 06-9763
- **Category:** other
- **Sub-agency:** Rural Housing Service
- **Federal Register citation:** 71 FR 75851
- **CFR reference:** 7 CFR 1951
- **Publication date:** 2006-12-19
- **Effective date:** 2006-12-19
## Abstract

This action amends the servicing regulations that apply when it is determined that unauthorized recipients have received financial assistance under USDA Business, Cooperative, and Community Facility loan and grant programs. The changes make clear that the first demand letter notifying the recipient of the Agency's determination serves as the initial step in the Agency's collection efforts, and that it may serve as the basis for the recipient's appeal rights. The terms of the first demand letter remain in full force and effect, unless the demand letter is subsequently amended in writing by the Agency after discussions with the recipient or modified as a result of judicial proceedings.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2006/12/19/06-9763/servicing-and-collections-unauthorized-recipients-of-financial-assistance)
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