§3.22. CCC withholding of payment.
7 C.F.R. § 3.22
CCC may temporarily withhold issuance of payment of some or all amounts to a debtor under one or more contracts or programs. Withholding of a payment prior to the completion of an applicable offset procedure may be made from amounts payable to a debtor by CCC to ensure that the interests of CCC and the United States will be protected as provided in this section.
A payment may be withheld to protect the interests of CCC or the United States if CCC determines that:
There has been a serious breach of contract or violation of program requirements and the withholding action is considered necessary to protect the financial interests of CCC;
There is substantial evidence of violations of criminal or civil fraud laws and criminal prosecution or civil fraud action is of primary importance to program operations of CCC;
Prior experience with the debtor indicates that collection will be difficult if amounts payable to the debtor are not withheld;
There is doubt that the debtor will be financially able to pay a judgment on the claim of CCC;
The facts available to CCC are insufficient to determine the amount to be offset or the proper payee;
A judgement on a claim of CCC has been obtained; or
Such action has been requested by Justice.
Notes, amendments, and revision history
Authority
Authority: 5 U.S.C. 301; 7 U.S.C. 1506, 1981, 1981a, 1981d, and 2008h; 15 U.S.C. 714b; 31 U.S.C. 3701, 3711, 3716-18, and 3720B; and 31 CFR parts 285 and 901-904.
Source
Source: 85 FR 36672, June 17, 2020, unless otherwise noted.