Title 31 — Money and Finance — § 3711. Collection and compromise
Summary
This page reproduces § 3711, Collection and compromise, from Title 31 (Money and Finance) of the United States Code, with its historical and amendment notes, followed by the start of § 3712. Section 3711(a) directs the head of an executive, judicial, or legislative agency to try to collect a claim of the United States Government for money or property and allows the agency to compromise a claim of not more than $100,000 (excluding interest) or a higher amount the Attorney General may prescribe. It sets the notice steps before an agency discloses to a consumer reporting agency that a person is responsible for a claim, with disclosure not less than 60 days after the notice. Subsection (g) sets rules for a nontax debt or claim that has been delinquent for a period of 180 days.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Page 305 TITLE 31—MONEY AND FINANCE § 3711
subsection (a) [amending this section] shall apply with is not recovered because of a compromise under
respect to claims against the United States presented this section.
to the Secretary of Defense under section 3702 of title (d) The head of an executive, judicial, or legis-
31, United States Code, on or after the date of the en-
lative agency acts under—
actment of this Act [Dec. 2, 2002].’’
(1) regulations prescribed by the head of the
EFFECTIVE DATE OF 1987 AMENDMENT agency; and
Amendment by Pub. L. 100–86 effective 6 months after (2) standards that the Attorney General, the
Aug. 10, 1987, or on such later date as the Secretary of Secretary of the Treasury, may prescribe.1
the Treasury may prescribe in regulations, see section (e)(1) When trying to collect a claim of the
1006 of Pub. L. 100–86, set out as a note under section Government under a law except the Internal
3328 of this title.
Revenue Code of 1986 (26 U.S.C. 1 et seq.), the
EFFECTIVE DATE OF 1983 AMENDMENT head of an executive, judicial, or legislative
Amendment effective Sept. 13, 1982, see section 2(i) of agency shall disclose to a consumer reporting
Pub. L. 97–452, set out as a note under section 3331 of agency information from a system of records
this title. that a person is responsible for a claim if—
(A) notice required by section 552a(e)(4) of
REGULATIONS
title 5 indicates that information in the sys-
For provision permitting Secretary of the Treasury tem may be disclosed to a consumer reporting
to prescribe rules, regulations, and procedures as nec- agency;
essary to implement amendment by section 1004(b) of (B) the head of the agency has reviewed the
Pub. L. 100–86, including recertification of Treasury
checks which have been canceled or for which a claim
claim and decided that the claim is valid and
has been asserted or barred, see section 1005 of Pub. L. overdue;
100–86, set out as a note under section 3328 of this title. (C) the head of the agency has notified the
person in writing—
SUBCHAPTER II—CLAIMS OF THE UNITED (i) that payment of the claim is overdue;
STATES GOVERNMENT (ii) that, within not less than 60 days after
sending the notice, the head of the agency
§ 3711. Collection and compromise intends to disclose to a consumer reporting
(a) The head of an executive, judicial, or legis- agency that the person is responsible for the
lative agency— claim;
(1) shall try to collect a claim of the United (iii) of the specific information to be dis-
States Government for money or property closed to the consumer reporting agency;
arising out of the activities of, or referred to, and
the agency; (iv) of the rights the person has to a com-
(2) may compromise a claim of the Govern- plete explanation of the claim, to dispute in-
ment of not more than $100,000 (excluding in- formation in the records of the agency about
terest) or such higher amount as the Attorney the claim, and to administrative repeal or
General may from time to time prescribe that review of the claim;
has not been referred to another executive or (D) the person has not—
legislative agency for further collection ac- (i) repaid or agreed to repay the claim
tion, except that only the Comptroller General under a written repayment plan that the
may compromise a claim arising out of an ex- person has signed and the head of the agency
ception the Comptroller General makes in the has agreed to; or
account of an accountable official; and (ii) filed for review of the claim under
(3) may suspend or end collection action on paragraph (2) of this subsection;
a claim referred to in clause (2) of this sub- (E) the head of the agency has established
section when it appears that no person liable procedures to—
on the claim has the present or prospective (i) disclose promptly, to each consumer re-
ability to pay a significant amount of the porting agency to which the original disclo-
claim or the cost of collecting the claim is sure was made, a substantial change in the
likely to be more than the amount recovered. condition or amount of the claim;
(b)(1) The head of an executive, judicial, or (ii) verify or correct promptly information
legislative agency may not act under subsection about the claim on request of a consumer re-
(a)(2) or (3) of this section on a claim that ap- porting agency for verification of informa-
pears to be fraudulent, false, or misrepresented tion disclosed; and
by a party with an interest in the claim, or that (iii) get satisfactory assurances from each
is based on conduct in violation of the antitrust consumer reporting agency that the agency
laws. is complying with all laws of the United
(2) The Secretary of Transportation may not States related to providing consumer credit
compromise for less than $500 a penalty under information; and
section 21302 of title 49 for a violation of chapter (F) the information disclosed to the con-
203, 205, or 207 of title 49 or a regulation or re- sumer reporting agency is limited to—
quirement prescribed or order issued under any (i) information necessary to establish the
of those chapters. identity of the person, including name, ad-
(c) A compromise under this section is final dress, and taxpayer identification number;
and conclusive unless gotten by fraud, misrepre- (ii) the amount, status, and history of the
sentation, presenting a false claim, or mutual claim; and
mistake of fact. An accountable official is not
liable for an amount paid or for the value of 1 So in original. Probably should be ‘‘Attorney General and the
property lost or damaged if the amount or value Secretary of the Treasury may prescribe jointly.’’
§ 3711 TITLE 31—MONEY AND FINANCE Page 306
(iii) the agency or program under which (A) the head of the executive, judicial, or
the claim arose. legislative agency that administers the pro-
(2) Before disclosing information to a con- gram that gave rise to the debt or claim shall
sumer reporting agency under paragraph (1) of transfer the debt or claim to the Secretary of
this subsection and at other times allowed by the Treasury; and
law, the head of an executive, judicial, or legis- (B) upon such transfer the Secretary of the
lative agency shall provide, on request of a per- Treasury shall take appropriate action to col-
son alleged by the agency to be responsible for lect or terminate collection actions on the
the claim, for a review of the obligation of the debt or claim.
person, including an opportunity for reconsider- (2) Paragraph (1) shall not apply—
ation of the initial decision on the claim. (A) to any debt or claim that—
(3) Before disclosing information to a con- (i) is in litigation or foreclosure;
sumer reporting agency under paragraph (1) of (ii) will be disposed of under an asset sales
this subsection, the head of an executive, judi- program within 1 year after becoming eligi-
cial, or legislative agency shall take reasonable ble for sale, or later than 1 year if consistent
action to locate a person for whom the head of with an asset sales program and a schedule
the agency does not have a current address to established by the agency and approved by
send the notice under paragraph (1)(C). the Director of the Office of Management
(4) The head of each executive agency shall re- and Budget;
quire, as a condition for insuring or guaran- (iii) has been referred to a private collec-
teeing any loan, financing, or other extension of tion contractor for collection for a period of
credit under any law to a person, that the lender time determined by the Secretary of the
provide information relating to the extension of Treasury;
credit to consumer reporting agencies or com- (iv) has been referred by, or with the con-
mercial reporting agencies, as appropriate. sent of, the Secretary of the Treasury to a
(5) The head of each executive agency may debt collection center for a period of time
provide to a consumer reporting agency or com- determined by the Secretary of the Treas-
mercial reporting agency information from a ury; or
system of records that a person is responsible (v) will be collected under internal offset,
for a claim which is current, if notice required if such offset is sufficient to collect the
by section 552a(e)(4) of title 5 indicates that in- claim within 3 years after the date the debt
formation in the system may be disclosed to a or claim is first delinquent; and
consumer reporting agency or commercial re-
porting agency, respectively. (B) to any other specific class of debt or
(f)(1) The Secretary of Defense may suspend or claim, as determined by the Secretary of the
terminate an action by the Secretary or by the Treasury at the request of the head of an exec-
Secretary of a military department under sub- utive, judicial, or legislative agency or other-
section (a) to collect a claim against the estate wise.
of a person who died while serving on active (3) For purposes of this section, the Secretary
duty as a member of the Army, Navy, Air Force, of the Treasury may designate, and withdraw
Marine Corps, Space Force, or Coast Guard dur- such designation of debt collection centers oper-
ing a period when the Coast Guard is operating ated by other Federal agencies. The Secretary of
as a service in the Navy if the Secretary deter- the Treasury shall designate such centers on the
mines that, under the circumstances applicable basis of their performance in collecting delin-
with respect to the deceased person, it is appro- quent claims owed to the Government.
priate to do so. (4) At the discretion of the Secretary of the
(2) The Secretary of Homeland Security may Treasury, referral of a nontax claim may be
suspend or terminate an action by the Secretary made to—
under subsection (a) to collect a claim against (A) any executive department or agency op-
the estate of a person who died while serving on erating a debt collection center for servicing,
active duty as a member of the Coast Guard if collection, compromise, or suspension or ter-
the Secretary determines that, under the cir- mination of collection action;
cumstances applicable with respect to the de- (B) a private collection contractor operating
ceased person, it is appropriate to do so. under a contract for servicing or collection ac-
(3) The Secretary of Veterans Affairs may sus- tion; or
pend or terminate an action by the Secretary (C) the Department of Justice for litigation.
under subsection (a) to collect a claim against
the estate of a person who died while serving on (5) Nontax claims referred or transferred under
active duty as a member of the Army, Navy, Air this section shall be serviced, collected, or com-
Force, Marine Corps, Space Force, or Coast promised, or collection action thereon sus-
Guard during a period when the Coast Guard is pended or terminated, in accordance with other-
operating as a service in the Navy if the Sec- wise applicable statutory requirements and au-
retary determines that, under the circumstances thorities. Executive departments and agencies
applicable with respect to the deceased person, operating debt collection centers may enter into
it is appropriate to do so. agreements with the Secretary of the Treasury
(4) In this subsection, the term ‘‘active duty’’ to carry out the purposes of this subsection. The
has the meaning given that term in section 101 Secretary of the Treasury shall—
of title 10. (A) maintain competition in carrying out
(g)(1) If a nontax debt or claim owed to the this subsection;
United States has been delinquent for a period (B) maximize collections of delinquent debts
of 180 days— by placing delinquent debts quickly;
Page 307 TITLE 31—MONEY AND FINANCE § 3711
(C) maintain a schedule of private collection (A) administrative offset,
contractors and debt collection centers eligi- (B) tax refund offset,
ble for referral of claims; and (C) Federal salary offset,
(D) refer delinquent debts to the person most (D) referral to private collection contrac-
appropriate to collect the type or amount of tors,
claim involved. (E) referral to agencies operating a debt col-
lection center,
(6) Any agency operating a debt collection
(F) reporting delinquencies to credit report-
center to which nontax claims are referred or
ing bureaus,
transferred under this subsection may charge a (G) garnishing the wages of delinquent debt-
fee sufficient to cover the full cost of imple- ors, and
menting this subsection. The agency transfer- (H) litigation or foreclosure.
ring or referring the nontax claim shall be
charged the fee, and the agency charging the fee (10) To carry out the purposes of this sub-
shall collect such fee by retaining the amount of section, the Secretary of the Treasury may pre-
the fee from amounts collected pursuant to this scribe such rules, regulations, and procedures as
subsection. Agencies may agree to pay through the Secretary considers necessary and transfer
a different method, or to fund an activity from such funds from funds appropriated to the De-
another account or from revenue received from partment of the Treasury as may be necessary
the procedure described under section 3720C of to meet existing liabilities and obligations in-
this title. Amounts charged under this sub- curred prior to the receipt of revenues that re-
section concerning delinquent claims may be sult from debt collections.
considered as costs pursuant to section 3717(e) of (h)(1) The head of an executive, judicial, or
this title. legislative agency acting under subsection (a)(1),
(7) Notwithstanding any other law concerning (2), or (3) of this section to collect a claim, com-
the depositing and collection of Federal pay- promise a claim, or terminate collection action
ments, including section 3302(b) of this title, on a claim may obtain a consumer report (as
agencies collecting fees may retain the fees that term is defined in section 603 of the Fair
from amounts collected. Any fee charged pursu- Credit Reporting Act (15 U.S.C. 1681a)) or com-
ant to this subsection shall be deposited into an parable credit information on any person who is
account to be determined by the executive de- liable for the claim.
partment or agency operating the debt collec- (2) The obtaining of a consumer report under
tion center charging the fee (in this subsection this subsection is deemed to be a circumstance
referred to in this section 2 as the ‘‘Account’’). or purpose authorized or listed under section 604
Amounts deposited in the Account shall be of the Fair Credit Reporting Act (15 U.S.C.
available until expended to cover costs associ- 1681b).
ated with the implementation and operation of (i)(1) The head of an executive, judicial, or leg-
Governmentwide debt collection activities. islative agency may sell, subject to section
Costs properly chargeable to the Account in- 504(b) of the Federal Credit Reform Act of 1990
clude— and using competitive procedures, any nontax
(A) the costs of computer hardware and soft- debt owed to the United States that is delin-
ware, word processing and telecommuni- quent for more than 90 days. Appropriate fees
cations equipment, and other equipment, sup- charged by a contractor to assist in the conduct
plies, and furniture; of a sale under this subsection may be payable
(B) personnel training and travel costs; from the proceeds of the sale.
(C) other personnel and administrative (2) After terminating collection action, the
costs; head of an executive, judicial, or legislative
(D) the costs of any contract for identifica- agency shall sell, using competitive procedures,
tion, billing, or collection services; and any nontax debt or class of nontax debts owed to
(E) reasonable costs incurred by the Sec- the United States, if the Secretary of the Treas-
retary of the Treasury, including services and ury determines the sale is in the best interests
utilities provided by the Secretary, and ad- of the United States.
ministration of the Account. (3) Sales of nontax debt under this sub-
section—
(8) Not later than January 1 of each year, (A) shall be for—
there shall be deposited into the Treasury as (i) cash, or
miscellaneous receipts an amount equal to the (ii) cash and a residuary equity or profit
amount of unobligated balances remaining in participation, if the head of the agency rea-
the Account at the close of business on Sep- sonably determines that the proceeds will be
tember 30 of the preceding year, minus any part greater than sale solely for cash,
of such balance that the executive department
or agency operating the debt collection center (B) shall be without recourse, but may in-
determines is necessary to cover or defray the clude the use of guarantees if otherwise au-
costs under this subsection for the fiscal year in thorized, and
which the deposit is made. (C) shall transfer to the purchaser all rights
(9) Before discharging any delinquent debt of the Government to demand payment of the
owed to any executive, judicial, or legislative nontax debt, other than with respect to a re-
agency, the head of such agency shall take all siduary equity or profit participation under
appropriate steps to collect such debt, including subparagraph (A)(ii).
(as applicable)— (4)(A) Within one year after the date of enact-
ment of the Debt Collection Improvement Act of
2 So in original. 1996, each executive agency with current and de-
§ 3711 TITLE 31—MONEY AND FINANCE Page 308
linquent collateralized nontax debts shall report 566; Pub. L. 110–389, title VIII, § 801(a), Oct. 10,
to the Congress on the valuation of its existing 2008, 122 Stat. 4185; Pub. L. 116–283, div. A, title
portfolio of loans, notes and guarantees, and IX, § 927(d)(2), Jan. 1, 2021, 134 Stat. 3831.)
other collateralized debts based on standards de-
HISTORICAL AND REVISION NOTES
veloped by the Director of the Office of Manage-
1982 ACT
ment and Budget, in consultation with the Sec-
retary of the Treasury. Revised
Source (U.S. Code) Source (Statutes at Large)
(B) The Director of the Office of Management Section
and Budget shall determine what information is 3711(a) ..... 31:952(a)(less words July 19, 1966, Pub. L. 89–508,
required to be reported to comply with subpara- between 1st and § 3, 80 Stat. 309.
2d commas),
graph (A). At a minimum, for each financing ac- (b)(1st sentence
count and for each liquidating account (as those less words be-
tween 6th and 7th
terms are defined in sections 502(7) and 502(8), re- commas).
spectively, of the Federal Credit Reform Act of 3711(b) ..... 31:952(b)(2d sen-
tence, last sen-
1990) the following information shall be re- tence words after
ported: semicolon).
3711(c)(1) 31:952(b)(last sen-
(i) The cumulative balance of current debts tence words be-
outstanding, the estimated net present value fore semicolon).
3711(c)(2) 31:952(note). July 8, 1976, Pub. L. 94–348,
of such debts, the annual administrative ex- § 3(e), 90 Stat. 818.
penses of those debts (including the portion of 3711(d) ..... 31:952(c).
3711(e) ..... 31:952(a)(words be-
salaries and expenses that are directly related tween 1st and 2d
thereto), and the estimated net proceeds that commas), (b)(1st
sentence words
would be received by the Government if such between 6th and
debts were sold. 7th commas).
(ii) The cumulative balance of delinquent
debts, debts outstanding, the estimated net In the section, the words ‘‘executive or legislative
agency’’ are substituted for ‘‘agency’’ because of the re-
present value of such debts, the annual admin-
statement. The words ‘‘or his designee’’ are omitted as
istrative expenses of those debts (including unnecessary.
the portion of salaries and expenses that are In subsection (a), the word ‘‘Government’’ is added
directly related thereto), and the estimated for consistency. In clause (2), the words ‘‘including the
net proceeds that would be received by the General Accounting Office’’ are omitted as surplus. In
Government if such debts were sold. clause (3), the word ‘‘financial’’ is omitted as surplus.
(iii) The cumulative balance of guaranteed In subsections (b) and (d), the word ‘‘official’’ is sub-
loans outstanding, the estimated net present stituted for ‘‘officer’’ for consistency.
value of such guarantees, the annual adminis- In subsection (b), the words ‘‘Comptroller General’’
are substituted for ‘‘General Accounting Office’’ for
trative expenses of such guarantees (including consistency. The words ‘‘has the same authority that
the portion of salaries and expenses that are the head of the agency has’’ are substituted for ‘‘have
directly related to such guaranteed loans), and the foregoing authority’’ for clarity. The words ‘‘by an-
the estimated net proceeds that would be re- other agency’’ are omitted as surplus. The words ‘‘only
ceived by the Government if such loan guaran- . . . may compromise’’ are substituted for ‘‘nor shall
tees were sold. the head of an agency, other than . . . have authority
(iv) The cumulative balance of defaulted to compromise’’ to eliminate unnecessary words.
loans that were previously guaranteed and In subsection (c)(1), the words ‘‘that appears to be
fraudulent, false, or misrepresented by’’ are substituted
have resulted in loans receivables, the esti- for ‘‘as to which there is an indication of fraud, the
mated net present value of such loan assets, presentation of a false claim, or misrepresentation on
the annual administrative expenses of such the part of’’ to eliminate unnecessary words. The words
loan assets (including the portion of salaries ‘‘the debtor or . . . other’’ and ‘‘in whole or in part’’ are
and expenses that are directly related to such omitted as surplus.
loan assets), and the estimated net proceeds In subsection (c)(2), the words ‘‘Notwithstanding any
that would be received by the Government if provision of the Federal Claims Collection Act of 1966’’
such loan assets were sold. are omitted as unnecessary. The words ‘‘arising’’ and
‘‘an amount’’ are omitted as surplus.
(v) The marketability of all debts.
In subsection (d), the words ‘‘effected . . . authority
(5) This subsection is not intended to limit ex- conferred by’’, ‘‘on the debtor and on all officials, agen-
isting statutory authority of agencies to sell cies, and courts of the United States’’, ‘‘destroyed’’,
loans, debts, or other assets. and ‘‘with a person primarily responsible’’ are omitted
as surplus.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 971; Pub. In subsection (e), the words ‘‘in conformity with’’ are
L. 97–452, § 1(15), Jan. 12, 1983, 96 Stat. 2470; Pub. omitted as surplus.
L. 98–216, § 1(5), Feb. 14, 1984, 98 Stat. 4; Pub. L.
1983 ACT
99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L.
101–552, § 8(b), Nov. 15, 1990, 104 Stat. 2746; Pub. L. Revised Source (U.S. Code) Source (Statutes at Large)
102–365, § 4(a)(4), Sept. 3, 1992, 106 Stat. 973; Pub. Section
L. 103–272, § 5(i)(1), July 5, 1994, 108 Stat. 1375; 3711(f)(1) 31 App.:952(d)(1). July 19, 1966, Pub. L. 89–508, 80
Pub. L. 104–106, div. A, title X, § 1089, Feb. 10, Stat. 308, § 3(d)(1)–(3); added
Oct. 25, 1982, Pub. L. 97–365,
1996, 110 Stat. 459; Pub. L. 104–134, title III, § 3, 96 Stat. 1749.
§ 31001(c)(1), (g)(1)(C), (k), (m)(1), (p), Apr. 26, 3711(f)(2) 31 App.:952(d)(2).
3711(f)(3) 31 App.:952(d)(3).
1996, 110 Stat. 1321–359, 1321–363, 1321–365, 1321–366,
1321–371; Pub. L. 104–201, div. A, title X, § 1010, In subsection (f)(1), before clause (A), the word ‘‘Gov-
Sept. 23, 1996, 110 Stat. 2635; Pub. L. 104–316, title ernment’’ is substituted for ‘‘United States’’ for con-
I, § 115(g)(1), Oct. 19, 1996, 110 Stat. 3834; Pub. L. sistency in the revised title and with other titles of the
109–241, title IX, § 902(b)(4), July 11, 2006, 120 Stat. United States Code. The words ‘‘subsection (a) of this
Page 309 TITLE 31—MONEY AND FINANCE § 3711
section, or under any other’’ are omitted as surplus. ecutive, judicial, or legislative agency’’ for ‘‘the head
The word ‘‘law’’ is substituted for ‘‘statutory author- of an executive or legislative agency’’ wherever appear-
ity’’ to eliminate unnecessary words. In clause (A), the ing, was executed in introductory provisions by sub-
words ‘‘for the system of records’’ are omitted as sur- stituting ‘‘The head of an executive, judicial, or legisla-
plus. In clause (C)(iii), the word ‘‘intended’’ is omitted tive agency’’ for ‘‘The head of an executive or legisla-
as surplus. In clause (E)(ii), the words ‘‘as appropriate’’ tive agency’’, to reflect the probable intent of Congress.
and ‘‘any or all’’ are omitted as surplus. In clause Subsec. (e)(2). Pub. L. 104–134, § 31001(g)(1)(C), inserted
(E)(iii), the words ‘‘all laws of the United States’’ are ‘‘, the Secretary of the Treasury,’’ after ‘‘Attorney
coextensive with and substituted for ‘‘the Fair Credit General’’.
Reporting Act (15 U.S.C. 1681 et seq.) and any other Subsec. (f). Pub. L. 104–316, § 115(g)(1)(C), redesignated
Federal law’’. the subsec. (g), relating to authority to suspend or ter-
minate collection actions against deceased members, as
1984 ACT (f). Former subsec. (f) redesignated (e).
This is necessary to reflect the transfer of the non- Subsec. (f)(1). Pub. L. 104–134, § 31001(c)(1), (k)(1), (2),
positive law provisions of title 49 to title 49 appendix. in introductory provisions substituted ‘‘the head of an
executive, judicial, or legislative agency shall’’ for ‘‘the
Editorial Notes head of an executive or legislative agency may’’ and ‘‘a
person’’ for ‘‘an individual’’.
REFERENCES IN TEXT Subsec. (f)(1)(C), (D), (F). Pub. L. 104–134, § 31001(k)(3),
Sections 502(7), 502(8), and 504(b) of the Federal Credit substituted ‘‘the person’’ for ‘‘the individual’’ wherever
Reform Act of 1990, referred to in subsec. (i)(1), (4)(B), appearing.
are classified to sections 661a(7), 661a(8), and 661c(b), re- Subsec. (f)(2). Pub. L. 104–134, § 31001(c)(1), (k)(2), (3),
spectively, of Title 2, The Congress. substituted ‘‘the head of an executive, judicial, or legis-
The date of enactment of the Debt Collection Im- lative agency’’ for ‘‘the head of an executive or legisla-
provement Act of 1996, referred to in subsec. (i)(4)(A), is tive agency’’, ‘‘a person’’ for ‘‘an individual’’, and ‘‘the
the date of enactment of section 31001 of Pub. L. person’’ for ‘‘the individual’’.
104–134, which was approved Apr. 26, 1996. Subsec. (f)(3). Pub. L. 104–134, § 31001(c)(1), (k)(2), sub-
stituted ‘‘the head of an executive, judicial, or legisla-
AMENDMENTS tive agency’’ for ‘‘the head of an executive or legisla-
2021—Subsec. (f)(1), (3). Pub. L. 116–283 inserted tive agency’’ and ‘‘a person’’ for ‘‘an individual’’.
‘‘Space Force,’’ after ‘‘Marine Corps,’’. Subsec. (f)(4), (5). Pub. L. 104–134, § 31001(k)(4), added
2008—Subsec. (f)(3), (4). Pub. L. 110–389 added par. (3) pars. (4) and (5).
and redesignated former par. (3) as (4). Subsec. (g). Pub. L. 104–316, § 115(g)(1)(C), redesignated
2006—Subsec. (f)(2). Pub. L. 109–241 substituted ‘‘Sec- the subsec. (g), relating to authority to suspend or ter-
retary of Homeland Security’’ for ‘‘Secretary of Trans- minate collection actions against deceased members, as
portation’’. (f).
1996—Subsec. (a). Pub. L. 104–134, § 31001(c)(1), which Pub. L. 104–134, § 31001(m)(1), added subsec. (g) relat-
directed that this section be amended by substituting ing to transfer of debt or claim to Secretary of the
‘‘the head of an executive, judicial, or legislative agen- Treasury in case of delinquency.
cy’’ for ‘‘the head of an executive or legislative agency’’ Pub. L. 104–106 added subsec. (g) relating to authority
wherever appearing, was executed in introductory pro- to suspend or terminate collection actions against de-
visions by substituting ‘‘The head of an executive, judi- ceased members.
cial, or legislative agency’’ for ‘‘The head of an execu- Subsec. (g)(1). Pub. L. 104–201, § 1010(1), substituted
tive or legislative agency’’, to reflect the probable in- ‘‘Marine Corps, or Coast Guard during a period when
tent of Congress. the Coast Guard is operating as a service in the Navy’’
Subsec. (a)(2). Pub. L. 104–316, § 115(g)(1)(A), inserted for ‘‘or Marine Corps’’.
‘‘, except that only the Comptroller General may com- Subsec. (g)(2), (3). Pub. L. 104–201, § 1010(2), (3), added
promise a claim arising out of an exception the Comp- par. (2) and redesignated former par. (2) as (3).
troller General makes in the account of an accountable Subsec. (h). Pub. L. 104–134, § 31001(m)(1), added sub-
official’’ before ‘‘; and’’ at end. sec. (h).
Subsec. (b). Pub. L. 104–316, § 115(g)(1)(B), (C), redesig- Subsec. (i). Pub. L. 104–134, § 31001(p), added subsec.
nated subsec. (c) as (b) and struck out former subsec. (i).
(b) which read as follows: ‘‘The Comptroller General 1994—Subsec. (c)(2). Pub. L. 103–272 substituted ‘‘sec-
has the same authority that the head of the agency has tion 21302 of title 49 for a violation of chapter 203, 205,
under subsection (a) of this section when the claim is or 207 of title 49 or a regulation or requirement pre-
referred to the Comptroller General for further collec- scribed or order issued under any of those chapters’’ for
tion action. Only the Comptroller General may com- ‘‘section 6 of the Act of March 2, 1893 (45 U.S.C. 6), sec-
promise a claim arising out of an exception the Comp- tion 4 of the Act of April 14, 1910 (45 U.S.C. 13), section
troller General makes in the account of an accountable 9 of the Act of February 17, 1911 (45 U.S.C. 34), and sec-
official.’’ tion 25(h) of the Interstate Commerce Act (49 App.
Subsec. (c). Pub. L. 104–316, § 115(g)(1)(C), redesignated U.S.C. 26(h))’’.
subsec. (d) as (c). Former subsec. (c) redesignated (b). 1992—Subsec. (c)(2). Pub. L. 102–365 substituted ‘‘$500’’
Subsec. (c)(1). Pub. L. 104–134, § 31001(c)(1), which di- for ‘‘$250’’.
rected that this section be amended by substituting 1990—Subsec. (a)(2). Pub. L. 101–552 substituted
‘‘the head of an executive, judicial, or legislative agen- ‘‘$100,000 (excluding interest) or such higher amount as
cy’’ for ‘‘the head of an executive or legislative agency’’ the Attorney General may from time to time pre-
wherever appearing, was executed by substituting ‘‘The scribe’’ for ‘‘$20,000 (excluding interest)’’.
head of an executive, judicial, or legislative agency’’ 1986—Subsec. (f)(1). Pub. L. 99–514 substituted ‘‘Inter-
for ‘‘The head of an executive or legislative agency’’, to nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code
reflect the probable intent of Congress. of 1954’’.
Subsec. (d). Pub. L. 104–316, § 115(g)(1)(C), (D), redesig- 1984—Subsec. (c)(2). Pub. L. 98–216 substituted ‘‘(49
nated subsec. (e) as (d) and in par. (2) struck out ‘‘and App. U.S.C. 26(h))’’ for ‘‘(49 U.S.C. 26(h))’’.
the Comptroller General’’ before ‘‘may prescribe’’ and 1983—Subsec. (f). Pub. L. 97–452 added subsec. (f).
‘‘jointly’’ after ‘‘prescribe’’. Former subsec. (d) redesig-
nated (c). Statutory Notes and Related Subsidiaries
Subsec. (e). Pub. L. 104–316, § 115(g)(1)(C), redesignated
SAVINGS PROVISION
subsec. (f) as (e). Former subsec. (e) redesignated (d).
Pub. L. 104–134, § 31001(c)(1), which directed that this Pub. L. 104–134, title III, § 31001(n), Apr. 26, 1996, 110
section be amended by substituting ‘‘the head of an ex- Stat. 1321–369, provided that: ‘‘Effective October 1, 1995,
§ 3712 TITLE 31—MONEY AND FINANCE Page 310
section 11 of the Administrative Dispute Resolution on a forged or unauthorized signature or en-
Act (Public Law 101–552, [former] 5 U.S.C. 571 note) dorsement on, or a change in, a check or war-
shall not apply to the amendment made by section 8(b) rant issued by the Secretary of the Treasury,
of such Act [amending this section].’’
the United States Postal Service, or any dis-
GUIDELINES bursing official or agent not later than 1 year
after a check or warrant is presented to the
Pub. L. 104–134, title III, § 31001(aa)(1), Apr. 26, 1996, 110
Stat. 1321–379, provided that: ‘‘The Secretary of the drawee for payment.
Treasury, in consultation with concerned Federal agen- (B) If the United States has given an en-
cies, may establish guidelines, including information dorser written notice of a claim against the
on outstanding debt, to assist agencies in the perform- endorser within the time allowed by subpara-
ance and monitoring of debt collection activities.’’ graph (A), the 1-year period for bringing a civil
action on that claim under subparagraph (A)
REPORT
shall be extended by 3 years.
Pub. L. 104–134, title III, § 31001(aa)(2), Apr. 26, 1996, 110 (3) EFFECT ON AGENCY AUTHORITY.—Nothing
Stat. 1321–379, required the Secretary of the Treasury, in this subsection shall be construed to limit
not later than 3 years after Apr. 26, 1996, to report to the authority of any agency under subchapter
Congress on collection services provided by Federal II of chapter 37 of this title.
agencies or entities collecting debt on behalf of other
Federal agencies under the authorities contained in (b) Notwithstanding subsection (a) of this sec-
subsec. (g) of this section. tion, a civil action may be brought within 2
years after the claim is discovered when an en-
STANDARDS AND POLICIES FOR COMPROMISING, WRITING-
DOWN, FORGIVING, OR DISCHARGING INDEBTEDNESS
dorser, transferor, depositary, or fiscal agent
fraudulently conceals the claim from an officer
Pub. L. 104–134, title III, § 31001(bb), Apr. 26, 1996, 110 or employee of the Government entitled to bring
Stat. 1321–380, provided that: ‘‘The Director of the Of- the civil action.
fice of Management and Budget shall— (c) The Comptroller General shall credit the
‘‘(1) review the standards and policies of each Fed-
eral agency for compromising, writing-down, for-
appropriate account of the Treasury for the
giving, or discharging indebtedness arising from pro- amount of a check or warrant for which a civil
grams of the agency; action cannot be brought because notice was not
‘‘(2) determine whether those standards and policies given within the time required under subsection
are consistent and protect the interests of the United (a) of this section if the failure to give notice
States; was not the result of negligence of the Sec-
‘‘(3) in the case of any Federal agency standard or retary.
policy that the Director determines is not consistent (d) The Government waives all claims against
or does not protect the interests of the United States, a person arising from dual pay from the Govern-
direct the head of the agency to make appropriate
modifications to the standard or policy; and
ment if the dual pay is not reported to the
‘‘(4) report annually to the Congress on— Comptroller General for collection within 6
‘‘(A) deficiencies in the standards and policies of years from the last date of a period of dual pay.
Federal agencies for compromising, writing-down, (e) TREASURY CHECK OFFSET.—
forgiving, or discharging indebtedness; and (1) IN GENERAL.—To facilitate collection of
‘‘(B) progress made in improving those standards amounts owed by presenting banks pursuant
and policies.’’ to subsection (a) or (b), upon the direction of
EXISTING AGENCY AUTHORITY TO LITIGATE, SETTLE,
the Secretary, a Federal reserve bank shall
COMPROMISE, OR CLOSE CLAIMS withhold credit from banks presenting Treas-
ury checks for ultimate charge to the account
Pub. L. 89–508, § 4, July 19, 1966, 80 Stat. 309, provided of the United States Treasury. By presenting
that: ‘‘Nothing in this Act [now this section] shall in-
crease or diminish the existing authority of the head of
Treasury checks for payment a presenting
an agency to litigate claims, or diminish his existing bank is deemed to authorize this offset.
authority to settle, compromise, or close claims.’’ (2) ATTEMPT TO COLLECT REQUIRED.—Prior to
directing offset under subsection (a)(1), the
§ 3712. Time limitations for presenting certain Secretary shall first attempt to collect
claims of the Government amounts owed in the manner provided by sec-
tions 3711 and 3716.
(a) CLAIMS OVER FORGED OR UNAUTHORIZED EN-
DORSEMENTS.— (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 971; Pub.
(1) PERIOD FOR CLAIMS.—If the Secretary of L. 100–86, title X, § 1004(a), Aug. 10, 1987, 101 Stat.
the Treasury determines that a Treasury 659; Pub. L. 104–134, title III, § 31001(d)(4), Apr. 26,
check has been paid over a forged or unauthor- 1996, 110 Stat. 1321–362.)
ized endorsement, the Secretary may reclaim HISTORICAL AND REVISION NOTES
the amount of such check from the presenting
bank or any other endorser that has breached Revised
Source (U.S. Code) Source (Statutes at Large)
Section
its guarantee of endorsements prior to—
(A) the end of the 1-year period beginning 3712(a) ..... 31:129. Mar. 6, 1946, ch. 48, § 1, 60 Stat.
31; Aug. 28, 1957, Pub. L.
on the date of payment; or 85–183, § 3(b), 71 Stat. 465;
(B) the expiration of the 180-day period be- Aug. 12, 1970, Pub. L. 91–375,
§ 6(l)(2), 84 Stat. 782.
ginning on the close of the period described 3712(b) ..... 31:131. Mar. 6, 1946, ch. 48, §§ 2, 3, 60
in subparagraph (A) if a timely claim is re- Stat. 31.
3712(c) ..... 31:130.
ceived under section 3702. 3712(d) ..... 31:237a. Aug. 28, 1954, ch. 1035, 68 Stat.
890.
(2) CIVIL ACTIONS.—(A) Except as provided in
subparagraph (B), the United States may bring In the section, the words ‘‘Comptroller General’’ are
a civil action to enforce the liability of an en- substituted for ‘‘General Accounting Office’’ for con-
dorser, transferor, depository, or fiscal agent sistency.
File and source
- File
- USCODE-mostrecent-title31-sec3711.pdf
- Size
- 166,215 bytes
- SHA-256
- 15de01869595d3519debd64b4dc2af1d7867538487d07f42c10866ae7c87fced
- Original
- www.govinfo.gov