---
kind: "section"
citation: "45 C.F.R. § 2506.20"
title: "45"
number: "2506.20"
heading: "What is the extent of the Chief Executive Officer's authority to compromise debts owed to the Corporation, or to suspend or terminate collection action on such debts?"
url: "https://uscodex.org/cfr/45/2506.20"
---

# §2506.20. What is the extent of the Chief Executive Officer's authority to compromise debts owed to the Corporation, or to suspend or terminate collection action on such debts?

- (a) The Chief Executive Officer may compromise, suspend, or terminate collection action on those debts owed to the Corporation that do not exceed $100,000 excluding interest, in conformity with the Federal Claims Collection Act of 1966, as amended. The Corporation will follow the policies in [§ 902.2](/cfr/45/902.2.md) of the FCCS.
- (b) The uncollected portion of a debt owed to the Corporation that is not recovered as the result of a compromise will be reported to the Internal Revenue Service (IRS) as income to the debtor in accordance with IRS procedures if this uncollected amount is at least $600.00.

## Notes

### Authority

Authority: 5 U.S.C. 5514; 31 U.S.C. 3701-3720A, 3720D; 44 U.S.C. 2104(a).

### Source

Source: 68 FR 16438, Apr. 4, 2003, unless otherwise noted.