[Federal Register: December 8, 1998 (Volume 63, Number 235)]
[Rules and Regulations]
[Page 67753-67758]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08de98-18]

[[Page 67753]]

_______________________________________________________________________

Part III

Department of the Treasury

_______________________________________________________________________

Fiscal Service

_______________________________________________________________________

31 CFR Part 285

Barring Delinquent Debtors From Obtaining Federal Loans or Loan
Insurance or Guarantees; Final Rule

[[Page 67754]]

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 285

RIN 1510-AA71


Barring Delinquent Debtors From Obtaining Federal Loans or Loan
Insurance or Guarantees

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Final rule.

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SUMMARY: The Debt Collection Improvement Act of 1996 (DCIA) mandated a
new eligibility requirement for persons seeking Federal financial
assistance, namely that delinquent Federal debtors are ineligible for
Federal direct and indirect loan assistance (other than disaster
loans). On April 22, 1998, the Financial Management Service issued a
notice of proposed rulemaking proposing rules to define when a debt is
in delinquent status and when a delinquency is resolved for purposes of
determining whether the DCIA bars a person from receiving financial
assistance. The notice of proposed rulemaking also proposed rules
governing when the Secretary of the Treasury may exempt a class of
delinquent debts from affecting a debtor's loan eligibility, and
proposed factors for authorized agency officials to consider when
deciding whether to waive the DCIA eligibility requirement. This final
rule finalizes the proposed rule, with changes, and addresses issues
raised in comments received on the notice of proposed rulemaking.

EFFECTIVE DATE: January 7, 1999.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Financial Program
Specialist, at (202) 874-6859; Ellen Neubauer or Randall Lewis, Senior
Attorneys, at (202) 874-6680. A copy of this final rule is being made
available for downloading from the Financial Management Service web
site at the following address: http://www.fms.treas.gov/debt.

SUPPLEMENTARY INFORMATION:

Background

    Section 31001(j)(1) of the Debt Collection Improvement Act of 1996
(DCIA), Pub. L. 104-134, 110 Stat. 1321-358 (Apr. 26, 1996), codified
at 31 U.S.C. 3720B (section 3720B), provides that a person owing a
delinquent nontax debt to the Federal Government is ineligible for
Federal financial assistance in the form of a loan (other than a
disaster loan) or loan insurance or guarantee. The head of an agency
that administers a Federal financial assistance program may waive this
provision. The waiver authority may be delegated only to the agency's
Chief Financial Officer or Deputy Chief Financial Officer. In addition,
the Secretary of the Treasury may exempt any class of debts from
affecting a person's eligibility for receiving financial assistance.
    The DCIA requires the Secretary of the Treasury to prescribe
standards under which agencies will determine whether a person has an
outstanding delinquent debt that would trigger the DCIA bar to Federal
financial assistance. As the lead agency for the collection of
delinquent nontax debt in the Federal Government, the Financial
Management Service (FMS), a bureau of the Department of the Treasury,
is responsible for promulgating the regulations governing this and
other provisions of the DCIA. This final rule defines when a debt is in
delinquent status and when the delinquency is resolved for purposes of
determining whether the DCIA bars a person from receiving financial
assistance. This final rule also prescribes standards under which a
Treasury exemption may be granted and sets forth factors for an agency
to consider when deciding whether an agency waiver is appropriate.

Summary of Comments

    On April 22, 1998, FMS published a Notice of Proposed Rulemaking in
the Federal Register (63 FR 20006) entitled ``Barring Delinquent
Debtors from Obtaining Federal Loans or Loan Insurance or Guarantees.''
FMS received written comments from three Federal agencies, two
financial institutions, and one university.

Delinquency Standards

    One commenter recommended that determinations of delinquency and
resolutions of defaults be made based on existing eligibility criteria
under applicable program specific statutes and regulations. Another
commenter suggested that individual creditor agencies be allowed to
determine when its debts are sufficiently delinquent for purposes of
barring a debtor from obtaining additional Federal financial
assistance. A third commenter recommended that the rule authorize
credit-granting agencies to determine when debt reported as delinquent
by a creditor agency is sufficiently delinquent to warrant
ineligibility for assistance.
    The DCIA created a new eligibility requirement applicable to all
Federal financial assistance programs and directed the Secretary of the
Treasury to issue government-wide standards for determining when a debt
is delinquent for purposes of barring delinquent debtors from obtaining
additional Federal financial assistance. Thus, as required by the DCIA,
the final rule retains uniform government-wide guidelines. While
government-wide standards apply to this particular eligibility
criteria, nothing in this rule precludes an agency from setting its own
standards with regard to other eligibility criteria applicable to a
specific program. Paragraph 285.13(b)(3) specifically states that
nothing in this rule requires an agency to grant Federal financial
assistance if denial otherwise is authorized by statute, regulation or
agency policies and procedures. For instance, if a delinquent debt is
resolved in accordance with paragraph 285.13(e), an agency still may
deny an application if the applicant fails to meet other requirements
imposed under a specific program. Additionally, under the DCIA and in
accordance with paragraph 285.13(g) of this rule, agencies also may
waive the requirements of this section under appropriate circumstances.

Application of This Rule to Financial Institutions

    One commenter requested clarification on whether the regulation
applies to parties other than Federal agencies, such as financial
institutions which issue loans which are federally insured or
guaranteed. Another commenter suggested that the rule be clarified with
regard to who has the responsibility for determining whether a
prospective borrower is delinquent, and whether a delinquent debt has
been resolved.
    This rule applies to Federal loans, loan insurance and loan
guarantees. The responsibilities of financial institutions that issue
federally guaranteed or insured loans continue to be governed by
program specific statutes, regulations, and agency policies and
procedures, as well as individual agreements between agencies and
lenders. Federal agencies will have to ensure that such regulations,
policies and procedures, and agreements address the eligibility
requirements of the DCIA and this regulation.

Application of the Equal Credit Opportunity Act

    One commenter asked whether protected classes comprise a
significant number of delinquent debtors impacted by this rule, and
expressed concern that denial of credit under this rule might violate
the Equal Credit Opportunity Act.

[[Page 67755]]

    The Equal Credit Opportunity Act prohibits a creditor from
discriminating against an applicant on a prohibited basis regarding any
aspect of a credit transaction. The fact that an applicant owes a
delinquent debt to the United States is not a prohibited basis. See 12
CFR 202.2 (Regulation B). Even if the effect of the DCIA and this rule
would be to disadvantage protected classes, as a general matter, a
lender acting pursuant to a regulation or statute when denying credit
would have a non-discriminatory business reason for doing so.
Consequently, compliance with the DCIA and this rule does not, in and
of itself, constitute a violation of the Equal Credit Opportunity Act.

Application of the Fair Credit Reporting Act

    Another commenter expressed concern that, under the Fair Credit
Reporting Act, 15 U.S.C. 1681, lenders would be unable to obtain credit
reports relating to the status of loans for which an applicant is a
guarantor. While the commenter is correct, for purposes of the bar
imposed by the DCIA and this rule, the fact that an applicant is a
guarantor on another loan is irrelevant unless the applicant/guarantor
becomes responsible for repaying the loan and subsequently becomes
delinquent. In the event the applicant/guarantor does become
responsible for the loan, any delinquency should appear on the
applicant's credit report.

Section 285.13(a)  Definitions

    One commenter requested that the definition of Federal financial
assistance or financial assistance be revised to specifically include
price support loans with non-recourse provisions issued by the
Commodity Credit Corporation of the Department of Agriculture. The
definition of ``Federal financial assistance'' or ``financial
assistance'' includes all loans (other than disaster loans), including
non-recourse loans. Therefore, because price support loans are a type
of loan already covered by the definition, a specific reference to one
type of loan is not necessary.

Section 285.13(b)  Purpose and Scope

    One commenter requested that the rule be revised to include
guidance regarding whether a person, such as a corporation, would be
barred from obtaining Federal financial assistance where the
corporation seeking Federal financial assistance is not a delinquent
debtor, but a person with a controlling interest in the corporation,
such as an officer, director, or shareholder, is a delinquent debtor.
In response, FMS has revised the rule to clarify that a person seeking
Federal financial assistance may be ineligible for such financial
assistance if that person either controls or is controlled by a person
who owes a delinquent nontax debt to the United States. Whether or not
a person controls or is controlled by a delinquent debtor and the
extent to which such person is ineligible for Federal financial
assistance is to be determined in accordance with standards and
procedures established by the credit granting agency. See paragraph
285.13(c)(2).
    Another commenter asked whether this rule applies to applicants for
Federal grants. The DCIA defines Federal financial assistance as any
loan (other than a disaster loan), loan insurance or loan guarantee.
Thus this rule does not apply to applicants for grants.

Section 285.13(c)  General Rule

    FMS received several comments regarding the methods to determine
whether an applicant has delinquent Federal debts that bar the
applicant from obtaining new Federal financial assistance. Commenters
suggested that the list of possible sources of information included in
the preamble to the proposed rule be added to the text of the final
rule. FMS has incorporated this suggestion. Commenters also suggested
that the list be expanded to include FMS' delinquent debtor database.
FMS is resolving legal and technical issues involved in making the
information contained in FMS' delinquent debtor database available to
Federal agencies. Thus, although not currently available, we anticipate
that FMS' database will be available in the future as one of many
sources of information concerning delinquent debtors. A commenter also
suggested that the rule require applications for Federal financial
assistance to include a self-certification, under penalty of perjury,
by which applicants would be required to list outstanding obligations
to the Federal government and whether such obligations were current.
FMS agrees that a self-certification could assist in identifying
delinquent debtors and recommends that agencies adopt this approach. A
mandatory self-certification requirement is not included in this rule
because loan application procedures are established by the credit-
granting agency.
    Two agencies requested clarification regarding the meaning of the
term ``guarantor'' for purposes of this rule. The reference to
``guarantor'' in Sec. 285.13(c)(1) of the final rule is intended to
cover credit applicants who owe delinquent debt as a result of an
obligation to pay under a guaranty. Once the guarantor's obligation to
pay is triggered and the obligation is not paid in accordance with the
terms and conditions of the guaranty, the defaulted obligation would be
an outstanding debt in delinquent status.
    The DCIA bar also applies if the entity seeking to guarantee a loan
is a delinquent debtor since the entity seeking to guarantee a loan may
ultimately become obligated for repayment of the loan. Therefore, a
person owing a delinquent debt is ineligible for additional Federal
financial assistance whether applying for such assistance as a direct
borrower or as a guarantor.
    As noted above, one commenter requested that the rule be revised to
include guidance under circumstances where an applicant for Federal
financial assistance controls or is controlled by a delinquent debtor.
A new paragraph has been added to Sec. 285.13(c) clarifying that an
agency may, under standards issued by the agency, deny Federal
financial assistance to persons who control or are controlled by a
delinquent debtor.

Section 285.13(d)  Delinquent Status

    Several commenters objected to the proposed standards in
Sec. 285.13(d)(1) under which a debt would be in delinquent status if
not paid by the payment due date. Commenters pointed out that under the
standards contained in the proposed rule, a debt on which a payment was
one day late would be considered a debt in delinquent status. Under
such a standard agencies would have no practical way to determine if a
debt was delinquent nor any way to distinguish between payments which
are merely late (or timely payments which are posted late) and those
which are seriously delinquent. Additionally, commenters noted that
being a day late on a single payment was not a valid indication of
credit worthiness.
    In response to these comments, Sec. 285.13(d)(1) of the final rule
is revised to provide that a debt is delinquent for purposes of barring
additional Federal financial assistance when the debt has not been paid
within 90 days of the due date. FMS agrees that agencies may have no
practical way of knowing about a debt which is less than 90 days past-
due. Credit granting agencies will rely on credit reports as a way to
determine that an applicant owes a delinquent debt to the United
States. Federal agencies must give debtors at least 60 days notice
before reporting a debt to a consumer credit bureau. Thus, providing
that a debt is not in delinquent status for purposes of this

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rule until it is 90 days past-due allows sufficient time for the debt
to be reported to a credit bureau.
    Additionally, the 90-day period ensures that only those debtors
owing debts in delinquent status, and not debtors whose payments are
late or untimely posted, will be denied financial assistance as
required by the DCIA. Consistent with standard lending practices which
classify a loan as non-performing when the loan is 90 days past-due,
the final rule classifies a debt as being in a delinquent status when
the debt is 90 days past-due. See, e.g., 12 CFR 933.1(u), 26 CFR 1.585-
6(d)(iii)(A). The 90-day provision protects against an applicant being
denied financial assistance merely because of a late payment or an
untimely posting. At the same time the rule furthers the intent of the
DCIA to reduce losses by screening potential borrowers.
    As noted in the preamble to the proposed rule, nothing in this rule
defines the term ``delinquent'' for any purpose other than the
application of section 3720B of the DCIA and this rule. In addition,
nothing in this rule precludes a credit-granting agency from denying
loans if an applicant owes a delinquent debt which is less than 90 days
past-due if otherwise authorized.

Section 285.13(e)  Delinquency Resolution

    One commenter suggested that the rule be revised to clarify the
difference between portions of debt that have been written-off after a
compromise, and debts that have been written-off because they were
uncollectible. Under Sec. 285.13(e)(2), a delinquent debt which has
been written off is not considered resolved unless the provisions of
paragraph (e)(1) apply. Under paragraph (e)(1), a debt is resolved if a
compromise amount has been paid in full. Thus, where a debt has been
compromised and the debtor pays the full compromised amount, the
compromised portion of the debt which has been written-off is not in
delinquent status. Clarifying language has been added to paragraph
(e)(2) of the final rule.
    Another commenter suggested that the rule be revised to include a
requirement that a lender determine whether an applicant is in default
on a repayment agreement before approving additional Federal financial
assistance. The rule does not need to be revised because
Sec. 285.13(d)(1) addresses this concern. The definition of delinquent
status in Sec. 285.13(d)(1) of the final rule provides that a debt is
delinquent if not paid within 90 days of the due date. Due date is
defined in that paragraph as the date specified in, among other things,
an applicable agreement, including a post-delinquency repayment
agreement. Therefore, the rule does require that Federal financial
assistance be denied if a repayment agreement is in a delinquent
status.

Section 285.13(f)  Exemptions by the Secretary

    One commenter suggested that the language of the proposed rule be
revised to clarify whether, under Sec. 285.13(f), exemptions may be
requested by both the credit-granting agency and/or the creditor
agency. In response to this comment, paragraph 285.13(f) has been
revised to clearly state that requests for exemptions may be made only
by ``creditor'' agencies. Because the authority of the Secretary to
grant exemptions in 31 U.S.C. 3720B(a) is limited to classes of debt,
only the agency which holds the debt, i.e., the creditor agency, may
request such exemptions. Section 285.13(g) governs the authority of
credit-granting agencies to waive the ineligibility requirement
contained in the DCIA on a person by person basis under appropriate
circumstances.

Regulatory Analysis

    This final rule is not a significant regulatory action as defined
in Executive Order 12866. It is hereby certified that this rule will
not have a significant economic impact on a substantial number of small
entities. The basis for this certification is that the DCIA provides
that entities owing delinquent debt to the Federal Government are
ineligible for Federal direct and indirect loan assistance (other than
disaster loans). This final rule provides definitions for purposes of
determining whether the DCIA mandate applies. Therefore a regulatory
flexibility analysis is not required.

List of Subjects in 31 CFR Part 285

    Administrative practice and procedure, Credit, Debt, Loan programs.

Authority and Issuance

    For the reasons set forth in the preamble, 31 CFR part 285 is
amended as follows:

    1. The authority citation for part 285 is revised to read as
follows:

    Authority: 26 U.S.C. 6402; 31 U.S.C. 321, 3701, 3711, 3716,
3720A, 3720B, 3720D; E.O. 13019; 3 CFR, 1996 Comp., p. 216.

    2. Section 285.13 is added to subpart B to read as follows:

Sec. 285.13  Barring delinquent debtors from obtaining federal loans or
loan insurance or guarantees.

    (a) Definitions. For purposes of this section:
    Agency means a department, agency, court, court administrative
office, or instrumentality in the executive, judicial, or legislative
branch of the Federal Government, including government corporations.
    Creditor agency means any Federal agency that is owed a debt.
    Debt means any amount of money, funds or property that has been
determined by an appropriate official of the Federal Government to be
owed to the United States or an agency thereof by a person, including
debt administered by a third party as an agent for the Federal
Government.
    Federal financial assistance or financial assistance means any
Federal loan (other than a disaster loan), loan insurance, or loan
guarantee.
    FMS means the Financial Management Service, a bureau of the
Department of the Treasury.
    Nontax debt means any debt other than a debt under the Internal
Revenue Code of 1986 (26 U.S.C. 1 et seq.).
    Person means an individual, corporation, partnership, association,
organization, State or local government, or any other type of entity
other than a Federal agency.
    Secretary means the Secretary of the Treasury.
    (b) Purpose and scope. (1) This section prescribes standards for
determining whether an outstanding nontax debt owed to the Federal
Government is in delinquent status and whether such delinquency is
resolved for the purpose of denying Federal financial assistance to a
debtor. In addition, this section prescribes the circumstances under
which the Secretary may exempt a class of debts from affecting a
debtor's loan eligibility. This section also outlines the factors an
agency should consider when determining whether waiver of the general
rule in paragraph (c) of this section is appropriate.
    (2) Additional guidance concerning debt collection and debt
management is provided in ``Managing Federal Receivables'' and other
FMS publications.
    (3) Nothing in this section requires an agency to grant Federal
financial assistance if denial otherwise is authorized by statute,
regulation, or agency policies and procedures. For example, if an
agency requires borrowers to have a satisfactory credit history, the
agency may deny financial

[[Page 67757]]

assistance even if a delinquent debt has been resolved.
    (4) This section does not confer any new rights or benefits on
persons seeking Federal financial assistance.
    (5) This section applies to any person owing delinquent nontax debt
and to any agency that administers a program that grants Federal
financial assistance.
    (c) General rule. (1) As required by the provisions of 31 U.S.C.
3720B, a person owing an outstanding nontax debt that is in delinquent
status shall not be eligible for Federal financial assistance. This
eligibility requirement applies to all persons seeking Federal
financial assistance and owing an outstanding nontax debt in delinquent
status, including, but not limited to, guarantors. This eligibility
requirement applies to all Federal financial assistance even if
creditworthiness or credit history is not otherwise a factor for
eligibility purposes, e.g., student loans. A person may be eligible for
Federal financial assistance only after the delinquency is resolved in
accordance with this section. An agency may waive this eligibility
requirement in accordance with paragraph (g) of this section.
    (2) An agency from which a person seeks Federal financial
assistance may determine, under standards issued by the agency, that a
person is ineligible for Federal financial assistance under this
section if:
    (i) The person is controlled by a person owing an outstanding
nontax debt that is in delinquent status (e.g., a corporation is
controlled by an officer, director, or shareholder who owes a debt); or
    (ii) The person controls a person owing an outstanding nontax debt
that is in delinquent status (e.g., a corporation controls a wholly-
owned or partially-owned subsidiary which owes a debt).
    (3) A creditor agency may obtain information concerning whether or
not a person seeking Federal financial assistance owes a delinquent
debt from, among other sources, credit reports, information contained
on credit applications, and the Department of Housing and Urban
Development's Credit Alert Interactive Voice Response System (CAIVRS).
For information about participating in the CAIVRS program, agencies
should contact the Director of Information Resources Management, Policy
and Management Division, Office of Information Technology, Department
of Housing and Urban Development, 451 7th Street, S.W., Washington, DC
20410.
    (d) Delinquent status. (1) Except as otherwise provided in
paragraph (d)(2) of this section, a debt is in ``delinquent status''
for purposes of this section if the debt has not been paid within 90
days of the payment due date. The payment due date is the date
specified in the creditor agency's initial written demand for payment
or applicable agreement or instrument (including a post-delinquency
repayment agreement).
    (2) For purposes of this section, a debt is not in delinquent
status if:
    (i) The person seeking Federal financial assistance has been
released by the creditor agency from any obligation to pay the debt, or
there has been an adjudication or determination that such person does
not owe or does not have to pay the debt;
    (ii) The debtor is the subject of, or has been discharged in, a
bankruptcy proceeding, and if applicable, the person seeking Federal
financial assistance is current on any court authorized repayment plan;
or
    (iii) The existence of the debt or the agency's determination that
the debt is delinquent is being challenged under an ongoing
administrative appeal or contested judicial proceeding and the appeal
was filed by the debtor in a timely manner. Unless otherwise
prohibited, an agency may defer making a determination as to whether or
not to extend credit until the appeal process is completed.
    (3) Unless the provisions of paragraph (d)(2) apply, a debt is in
delinquent status even if the creditor agency has suspended or
terminated collection activity with respect to such debt. For example,
a delinquent nontax debt that has been written off the books of the
creditor agency or reported to the Internal Revenue Service as
discharged (i.e., canceled) is in delinquent status for purposes of
this section.
    (4) Nothing in this section defines the terms ``delinquent'' or
``delinquent status'' for any purposes other than those described in
this section.
    (e) Delinquency resolution. (1) For purposes of this section, a
person's delinquent debt is resolved only if the person:
    (i) Pays or otherwise satisfies the delinquent debt in full;
    (ii) Pays the delinquent debt in part if the creditor agency
accepts such part payment as a compromise in lieu of payment in full;
    (iii) Cures the delinquency under terms acceptable to the creditor
agency in that the person pays any overdue payments, plus all interest,
penalties, late charges, and administrative charges assessed by the
creditor agency as a result of the delinquency; or
    (iv) Enters into a written repayment agreement with the creditor
agency to pay the debt, in whole or in part, under terms and conditions
acceptable to the creditor agency.
    (2) Unless the provisions of paragraph (e)(1) of this section
apply, a delinquent debt is not resolved even if the creditor agency
has suspended or terminated collection activity with respect to such
debt. For example, a delinquent nontax debt that has been written off
the books of the creditor agency or reported to the Internal Revenue
Service as discharged (i.e., canceled) would not be ``resolved.'' If
the provisions of paragraph (e)(1) of this section do apply, a
delinquent debt is considered resolved. For example, if a portion of a
debt has been written off after the person has paid the debt in part
where the creditor agency accepts such part payment as a compromise in
lieu of payment in full, the entire debt would be deemed ``resolved''
for purposes of this section in accordance with paragraph (e)(1)(ii) of
this section.
    (f) Exemptions by the Secretary. (1) Upon the written request and
recommendation of the head of the creditor agency to which a class of
debts is owed, the Secretary may exempt any class of debts from
affecting a debtor's eligibility for Federal financial assistance based
on the provisions of 31 U.S.C. 3720B and this section.
    (2) The creditor agency recommending an exemption for a class of
debts will provide the Secretary with information about:
    (i) The nature of the program under which the delinquencies have
arisen;
    (ii) The number, dollar amount, and age of the debts in the program
for which exemption is recommended;
    (iii) The reasons why an exemption is justified, including why the
granting of financial assistance to persons owing the type of debt for
which exemption is requested would not be contrary to the Government's
goal to reduce losses by requiring proper screening of potential
borrowers; and,
    (iv) Other information the Secretary deems necessary to consider
the exemption request.
    (3) The Secretary may exempt a class of debts if exemption is in
the best interests of the Federal Government.
    (g) Waivers by the agency. (1) The head of an agency from which a
person seeks to obtain Federal financial assistance may waive the
eligibility requirement described in paragraph (c) of this section.
Waivers shall be granted only on a person by person basis. The head of
the agency may delegate the waiver authority only to the Chief
Financial Officer of the agency. The Chief Financial Officer may
redelegate the authority only to the Deputy Chief Financial Officer of
the agency.

[[Page 67758]]

    (2) The authorized agency official should balance the following
factors when deciding whether to grant a waiver under paragraph (g)(1)
of this section:
    (i) Whether the denial of the financial assistance to the person
would tend to interfere substantially with or defeat the purposes of
the financial assistance program or otherwise would not be in the best
interests of the Federal Government; and
    (ii) Whether the agency's granting of the financial assistance to
the person is contrary to the Government's goal to reduce losses from
debt management activities by requiring proper screening of potential
borrowers.
    (3) When balancing the factors described in paragraph (d)(2) of
this section, the authorized agency official should consider:
    (i) The age, amount, and cause(s) of the delinquency and the
likelihood that the person will resolve the delinquent debt; and
    (ii) The amount of total debt, delinquent or otherwise, owed by the
person and the person's credit history with respect to repayment of
debt.
    (4) Each agency shall retain a centralized record of the number and
type of waivers granted under this section.
    (h) Effect of denial of Federal financial assistance. Nothing
contained in this section precludes a person who has been denied
Federal financial assistance from obtaining such assistance after that
person's delinquent debt has been resolved in accordance with paragraph
(e)(1) of this section.

    Dated: December 2, 1998.
Richard L. Gregg,
Commissioner.
[FR Doc. 98-32479 Filed 12-7-98; 8:45 am]
BILLING CODE 4810-35-P