[Code of Federal Regulations]
[Title 40, Volume 1]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR13.18]

[Page 201-202]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY
 
PART 13_CLAIMS COLLECTION STANDARDS--Table of Contents
 
                          Subpart B_Collection
 
Sec. 13.18  Installment payments.

    (a) Whenever, feasible, and except as otherwise provided by law, 
debts owed to the United States, together with interest, penalty and 
administrative costs, as required by Sec. 13.11, will be collected in a 
single payment. However, where the Administrator determines that a 
debtor is financially unable to pay the indebtedness in a single payment 
or that an alternative payment mechanism is in the best interest of the 
United States, the Administrator may approve repayment of the debt in 
installments. The debtor has the burden of establishing that it is 
financially unable to pay the debt in a single payment or that an 
alternative payment mechanism is warranted. If the Administrator agrees 
to accept payment by installments, the Administrator may require a 
debtor to execute a written agreement which specifies all the terms of 
the repayment arrangement and which contains a provision accelerating 
the debt in the event of default. The size and frequency of installment 
payments will bear a reasonable relation to the size of the debt and the 
debtor's ability to pay. The installment payments will be sufficient in 
size and frequency to liquidate the debt in not more than 3 years, 
unless the Administrator determines that a longer period is required. 
Installment payments of less than $50 per month generally will not be 
accepted, but may be accepted where the debtor's financial or other 
circumstances justify. If the debt is unsecured, the Administrator may 
require the debtor to execute a confess-judgment note with a tax carry-
forward and a tax carry-back

[[Page 202]]

provision. Where the Administrator secures a confess-judgment note, the 
Administrator will provide the debtor a written explanation of the 
consequences of the debtor's signing the note.
    (b) If a debtor owes more than one debt and designates how a 
voluntary installment payment is to be applied among the debts, that 
designation will be approved if the Administrator determines that the 
designation is in the best interest of the United States. If the debtor 
does not designate how the payment is to be applied, the Administrator 
will apply the payment to the various debts in accordance with the best 
interest of the United States, paying special attention to applicable 
statutes of limitations.