§ 30.21 - When may the Secretary offset a debt?  


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  • § 30.21 When may the Secretary offset a debt?

    (a) The Secretary may offset a debt if:

    (1) The debt is liquidated or certain in amount; and

    (2) Offset is feasible and not otherwise prohibited.

    (b)

    (1) Whether offset is feasible is determined by the Secretary in the exercise of sound discretion on a case-by-case basis, either:

    (i) For each individual debt or offset; or

    (ii) For each class of similar debts or offsets.

    (2) The Secretary considers the following factors in making this determination:

    (i) Whether offset can be practically and legally accomplished.

    (ii) Whether offset will further and protect the interests of the United States.

    (c) The Secretary may switch advance funded grantees to a reimbursement payment system before initiating an offset.