Debt Settlement Policies and Procedures

A proposed rule was published in the Federal Register on August 24, 1994, at 59 FR 43504, amending 7 CFR parts 792 and 1403, which set forth the debt settlement policies and procedures of the Consolidated Farm Service Agency (CFSA) and the Commodity Credit Corporation (CCC), respectively. This final rule adopts the provisions of the proposed rule. This final rule amends CCC's debt settlement policies and procedures to remove references to Internal Revenue Service Notices of Levy, except to exempt them from coverage, and revises the rate of interest to be charged on delinquent debts. This final rule also amends CFSA's and CCC's debt settlement policies and procedures to provide for offset of a debtor's pro rata share of payments due any entity which the debtor participates in, either directly or indirectly. This regulation protects the financial integrity of many Federal agricultural programs by ensuring the Government will be able to collect, or otherwise settle, debts owed it by any person, organization, corporation, or other legal entity.