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action, including the authority to execute any document, authorize any expenditure, and promulgate any rule, regulation, order or instruction, required by law or deemed by him to be necessary and proper to the discharge of the functions assigned to his agency. The head of any such agency may, consistent with and with due regard to his personal responsibility for the proper discharge of the functions assigned to his agency, delegate and provide for the redelegation of his authority to appropriate officers and employees. (25 F.R. 3926, May 6, 1960, as amended at 29 F.R. 339, Jan. 15, 1964)

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AMERICAN REPUBLICS Sec. 2.1 Type of fellowship. 2.2 Qualifications. 2.3 Award of fellowships. 2.4 Allowances and expenses. 2.5 Duration of fellowships. 2.6 Official notification. 2.7 Definitions.

AUTHORITY: The provisions of this Part 2 issued under R.S. 161, as amended; 5 U.S.C. 301. Interpret or apply secs. 1, 2, 53 Stat. 1290; 22 U.S.C. 501, 502.

SOURCE: The provisions of this Part 2 appear at 9 F.R. 5031, May 13, 1944, unless otherwise noted. $ 2.1 Type of fellowship.

Fellowships shall be of the interntraining type, consisting of instruction by the respective bureaus of the Department of Agriculture as follows:

(a) Agricultural Research Service (Option I): (1) Agricultural economics, (2) agricultural program formulation and administration, (3) agricultural statistics, (4) rural sociology, and (5) technological research in agriculture or more specialized application in dairy industry, animal husbandry, entomology or plant industry and soils.

(b) Agricultural Extension Service (Option II): Methods and techniques for adult education in agriculture, homemaking and rural life, and 4-H Club work.

(c) Soil Conservation Service (Option III): Agronomy, forestry, biology, range nagement, climatology, sedimenta

hydrology, agricultural and civil neering.

$ 2.2 Qualifications.

Each applicant selected for a fellowship shall be:

(a) A bona fide citizen of any of the American republics other than the United States;

(b) In possession of a certificate of medical examination issued by a licensed physician within sixty days of the date of application, describing the applicant's physical condition, and stating that he is free from any communicable disease or disability that would interfere with the proper pursuit of studies or research or the performance of any activity incident tu the fellowship;

(c) Able to speak, read, write and understand the English language;

(d) Of good moral character and possessing intellectual ability and suitable personal qualities;

(e) In possession of acceptable evidence of studies indicating the completion of the equivalent of a four-year college course in agriculture, economics, engineering or related science at a recognized institution of learning, or minimum of two years of such education accompanied by at least four years of experience in the field of his option. § 2.3

Award of fellowships. Fellowships will be awarded by the Secretary of Agriculture of the United States, upon the recommendation of the heads of the respective bureaus, and with the approval of the Secretary of State of the United States, or the duly authorized representative of the Secretary of State. No applicant will be considered in awarding fellowships unless his application shall have been transmitted by the government of the American republic of which the applicant is a citizen, through the diplomatic mission of the United States of America accredited to that republic. & 2.4 Allowances and expenses.

An applicant awarded a fellowship may be granted any or all of the following, upon recommendation of the head of the respective bureau:

(a) Monthly allowances. Monthly allowances for quarters and subsistence during the entire period spent in the United States, or its Territories or possessions, in pursuance of a fellowship, beginning on the date of arrival at his initial headquarters and ending on the i

date of departure for his home, as fol American vessels must be used if availlows: (1) Not exceeding $180 per month able (section 901 of the Merchant Marine while under assignment to headquar Act of 1936, 49 Stat. 2015. This requireters in a Department or agency of the ment has been suspended with respect to Federal or a local government in a city appropriations for the fiscal year 1944 of more than 100,000 population; or not by section 302 of Public Law 216—78th exceeding $150 per month while under Congress, approved December 23, 1943). such assignment in a city of less than No receipts are necessary. 100,000 population; and (2) not exceed (4) Airplane fare: 'Transportation by ing $135 per month while under assign air will be allowed regardless of the cost ment to receive training at colleges or when authorized by the head of the universities and residing in quarters respective bureau. When air travel has usually occupied by students in attend not been specifically authorized, the ance thereat or in similar quarters, ir traveler may proceed by air with the respective of the population of the city

understanding that he may claim rewherein the institution is located.

imbursement therefor only in an amount (b) Transportation expenses. Trans not exceeding what it would have cost portation expenses from the home of

had the travel been performed by public the applicant (or place in which ap

conveyance over land or water. No pointment is accepted) to the place or receipts are necessary. places in the United States, its Terri

(5) Taxicab: At the beginning and tories, or possessions, where the studies

termination of the journey and at all and research are to be pursued, and re points where a change of conveyance is turn to the home of the applicant (or necessary while in a direct travel status. point of departure), including travel via

No receipts are necessary. Washington, D. C., en route to the place (6) Excess baggage charges: For perof study or research and from the place

sonal effects (not household furniture) of study or research to Washington,

which are not carried free by the transD. C., and return to that place, if neces

portation company. Receipts are necessary, for consultation with reference to

sary and they should indicate that the the fellowship, and between places of traveler has availed himself of the free study and research in the United States,

allowance, if such an allowance is its Territories or possessions, in accord

granted. ance with the Standardized Government (7) Drayage or transfer of baggage: Travel Regulations and the act of June

For the hauling of personal effects from 3, 1926, as amended, in which connec home to the station or dock, et cetera. tion claim for reimbursement may be

Receipts are not necessary but should be made only for items in the following submitted if possible. Charges by porschedule and contingent upon prior au ters for handling the bags or baggage thorization:

will not be allowed. (1) Rail fare: 'First-class fare. If (8) Steamer rug and steamer chair: travel is performed on an extra-fare

Receipts are necessary. Charges for train, expenses in excess of the first-class

steamer cushions will not be allowed. fare must be borne by the traveler. No (9) Tips and gratuitous fees: Will not receipts are necessary. (Government be reimbursed. transportation requests are to be used,

CROSS REFERENCE: For forms and proif practicable, within the United States.)

cedures with respect to Government requests (2) Pullman fare: 'Lower berth or

for transportation of passengers, see 4 CFR parlor car seat. No receipts are neces Part 51. sary if Government transportation re

(c) Per diem. Per diem in lieu of subquests are used. If purchased with cash he Pullman stub must be attached to

sistence while in travel status proceedthe reimbursement voucher.

ing from, and to, his home at the fol(3) Steamer fare: 'Not exceeding the lowing rates: $6 over land and by air Slowest minimum first-class fare of the in and outside of the United States, and ship on which travel is performed. $4 aboard vessels outside of the United

States. No per diem will be allowed 1 In all cases, round trip tickets must be

concurrently with monthly allowances, purchased if possible. In the event that the return portion of the ticket cannot be used, it

but per diem may be substituted therefor thould be returned to the respective bureau

at the rate of $6 per day for any period or collection of the refund.

of authorized travel. ! 1

§ 2.6

$ 2.5 Duration of fellowships.

AUTHORITY: The provisions of this part

Issued under sec. 1, 58 Stat. 836; 12 U.S.C. Fellowships will be awarded for pe

1150, unless otherwise noted. riods not exceeding one year each from date of arrival in Washington, and may

SOURCE: The provisions of this part 3 ap

pear at 10 F.R. 807, Jan. 23, 1945, unless be extended for not exceeding the same

otherwise noted. Redesignated at 13 F.R. periods in the manner prescribed under

6903, Nov. 24, 1948. $ 2.3 and subject to the availability of appropriations. Fellowships may be

§ 3.1

Purposes of the act and regula

tions. cancelled for cause by the Secretary of Agriculture on the recommendation of The principal purposes of the act the appropriate bureau head, and with and of the regulations in this part the approval of the Secretary of State, are to provide means of: (a) Settling, by or the duly authorized representative of compromise, adjustment or cancellation, the Secretary of State.

relatively small debts long past due and Official notification.

owing to the Government arising from

loans or payments made under farm Each applicant recommended for a fel

programs administered by the Departlowship by the head of a bureau and

ment; (b) recovering by the Department approved by the Secretary of Agriculture of substantial sums which are found and the Secretary of State, or the duly uncollectible when the indebtednesses authorized representative of the Secre

are treated as full obligations, and which tary of State, shall be notified of his

otherwise would probably never be colaward through diplomatic channels.

lected; (c) clearing the accounts of balThe notification shall name the option ances so small as not to warrant conin which the award is granted, state the tinued efforts of collection; and (d) the duration and type of fellowship, and the clearing of the accounts of the records allowances authorized; and shall describe of indebtedness made uncollectible by in general terms the program of studies: reason of the death or disappearance of Provided, however, That the head of the the debtors. bureau concerned may in his discretion

The existence of the act will neither subsequently amend the course of stud

serve as grounds for any relaxation in ies and duration of the fellowship within the general collection policy of the Dethe broad outlines of the prescribed op

partment nor should it serve as grounds tion in order to develop a program better for any lessening of the efforts of farmsuited to the needs and capabilities of

ers to pay their indebtedness. the individual fellow.

$ 3.2 Definitions. $ 2.7 Definitions.

(a) “Department” means Department As used in the regulations in this part,

of Agriculture. the term “bureau” includes the Agricul (b) “Indebtedness" with respect to any tural Research Service, the Extension

person, means his debt to the Govern. Service, and the Soil Conservation Sery

ment under each of the acts and proice of the United States Department of

grams listed in § 3.10, except that the toAgriculture. The term "heads of the re tal amount owed by any person under all spective bureaus" includes the Adminis

loan, purchase, sale and other programs trator of the Agricultural Research Sery

of the Commodity Credit Corporation ice, the Director of the Extension Sery with respect to a single commodity and ice, and the Administrator of the Soil without being limited to any crop year Conservation Service.

or marketing season shall be considered

to be an “indebtedness”. PART 3-DEBT SETTLEMENT

(c) “Compromise" means final liquida. Sec.

tion of the indebtedness through the im. 3.1 Purposes of the act and regulations. mediate payment of

portion thereof 3.2 Definitions.

and acceptance by the United States 3.3 Settlement of indebtedness.

of such payment in full satisfaction of 3.4 Investigations and indings. 3.5 Delegations of authority.

the indebtedness. 3.6 Forms and records.

(d) “Adjustment” means the scaling 3.8 Penalties.

down of the amount of the indebtedness 3.9 Indebtedness referred to Secretary of

including interest, conditioned upon the Treasury or the Attorney General.

payment of the adjusted amount at some 3.10 Scope of the act.

specified future time or times; such ad


$ 3.3

justment is not to be considered as effective as a settlement under this act until the provisions of the adjustment arrangement have been carried out.

(e) “Cancellation" means the complete discharge, without payment, of the indebtedness and the debtor. [10 F. R. 807, Jan. 23, 1945, as amended at 11 F. R. 11984, Oct. 15, 1946)

Settlement of indebtedness. (a) Indebtedness will be compromised, adjusted, or canceled, upon applicability by the debtor except in those cases where it is found that it is legally impossible for the debtor to make application, and upon the making of all the following findings:

(1) That said indebtedness has been due and payable for five years or more;

(2) That the debtor is unable to pay said indebtedness in full and has no reasonable prospect of being able to do so; officers of the Department shall not make such findings on the basis of mere unwillingness to pay on the part of the debtor, or mere financial disadvantage to him, but should find that the settlement is the most advantageous arrangement possible from the standpoint of the Government under the findings prescribed in this part. In no event shall cancellation be made unless, in addition to the foregoing requirements, there is an advantage in removing the indebtedness from the accounts.

(3) That the debtor has acted in good faith in an effort to meet his obligation; and

(4) That the principal amount of said indebtedness is not in excess of $1,000.

(b) Indebtedness may also be canceled without application when any one of the following circumstances is found:

(1) The amount of said indebtedness, including interest, is less than $10; such efforts of collection have been made as are warranted under the circumstances, and the cost of collection or of continued maintenance of accounts is deemed greater than the amount of the indebtedness;

(2) The debtor is deceased and there is no reasonable prospect of recovering from his estate;

(3) The debtor's whereabouts has remained unknown for two years and there is no reasonable prospect of obtaining collection; heads of agencies designated In § 3.5 will prescribe procedures which will assure that cancellations on this ground will be made only after a diligent effort has been made to locate the debtor,

including such contact with other agencies of the Department or otherwise as the amount of the indebtedness and the circumstances warrant;

(4) The debtor has been discharged of the indebtedness in any proceeding under "An act to establish a uniform system of bankruptcy throughout the United States."

(5) It is impossible or impracticable for legal or other reasons to obtain the debtor's application but all of the findings required by paragraph (a) of this section are made. (10 F.R. 807, Jan. 23, 1945, as amended at 12 F.R. 441, Jan. 22, 1947, 21 F.R. 3213, May 16, 1956] $ 3.4 Investigations and findings.

The heads of agencies designated in $ 3.5 shall prescribe procedures for the conduct of investigations to determine the facts incident to the settlement of any indebtedness. These procedures should include, among other things, provisions for consultations with local authorities, businessmen, or local representatives of other Government agencies, or for obtaining the recommendations of committees or other groups or persons designated by each agency for assistance in its regular program, or otherwise. The file relating to each debtor shall contain the formal findings required by $ 3.3, together with such evidence as has been obtained in support of such findings.

In order to effect uniformity in settlements, agency procedures should also provide that, where it appears from the application of the debtor or from investigation that the debtor is otherwise indebted to the United States, to the extent practicable consultation should be had (other than in cases under $ 3.3 (b) (1) and (4) with any other creditor agencies, to ascertain pertinent information as to the status of such other obligation or obligations. Such information shall be considered in connection with the settlement and for inclusion in the findings.

The head of each agency shall provide for review of proposed indebtedness settlements within his agency by officers or employees designated for that purpose under such conditions as he shall determine to be adequate to insure the protection of the interests of the United States. § 3.5 Delegations of authority.

The heads of any administration or other agency having jurisdiction over any of the acts or programs listed in

$ 3.10 (including those of Commodity Credit Corporation and Federal Crop Insurance Corporation) are hereby authorized, within their respective jurisdictions, to exercise any or all of the functions prescribed by this part. The head of each of such agencies may delegate and authorize the redelegation of any of the functions vested in him by this part: Provided, That the determination of any settlement shall not be delegated beyond the head of the highest field office having jurisdiction, except that in the case of the Agricultural Stabilization and Conservation State Ofices, such authority may also be delegated to the State Administrative Officers and except that in the case of the Farmers Home Administration, such authority may also be delegated to Assistant State Directors and Chiefs, Production Loan Operations, in State offices of that administration. (21 F. R. 3213, May 16, 1956] $ 3.6 Forms and records.

The Office of Budget and Finance may prescribe or approve forms for applications for settlement of indebtedness under this part; and shall require each agency to establish records to insure the immediate availability of necessary information of operations under this part.

Each agency shall furnish to the Office of Budget and Finance a report of operations under this part quarterly, or for such other periods as the Director of Finance may designate. (21 F. R. 3213, May 16, 1956] $ 3.8 Penalties.

The act prescribes the punishment by a fine of not more than $1,000 or imprisonment for not more than one year, or both, upon conviction, for anyone making any material representation, knowing it to be false, for the purpose of influencing in any way the action of the Secretary or of any person acting under his authority in connection with any compromise, adjustment, or cancellation of indebtedness provided for in the act. The act also pro

bits the acceptance by any oficer, employee, or other person to whom is delegated any power or function under the act. of any fee, commission, gift, or other consideration, directly or indirectly. for or in connection with any transaction or busi. ness relating to the compromise. adjustment. or cancellation of indebtedness un. der the act.

§ 3.9 Indebtedness referred to Secretary

of the Treasury or the Attorney Gen

eral. No settlement shall be effected under this part if the indebtedness is pending before the Secretary of the Treasury for compromise, or the Attorney General for collection. $ 3.10 Scope of the act.

The authorities prescribed in this part are applicable to indebtedness arising from loans or payments made or credit extended pursuant to the following acts and programs:

1. Act of July 1, 1918 (40 Stat. 635), Loans for seed.

2. Act of March 3, 1921 (41 Stat. 1347), Loans for seed.

3. Act of March 20, 1922 (42 Stat. 467), : Loans for seed.

4. Act of April 26, 1924 (43 Stat. 110), 3 Loans for seed and feed.

5. Act of February 25, 1927 (44 Stat. 1245), ! Loans for seed, feed and fertilizer.

6. Act of February 28, 1927 (44 Stat. 1251), Hurricane damage loans.

7. Act of February 25, 1929 (45 Stat. 1306), as amended May 17, 1929 (46 Stat. 3), Loans for seed, feed and fertilizer and to vegetable 1 and fruit growers.

8. Act of March 3, 1930 (46 Stat. 78–79), as amended April 24, 1930 (46 Stat. 254), Loans for seed, feed, fertilizer, fuel and oil.

9. Act of December 20, 1930 (46 Stat. 1032), as amended February 14, 1931 (46 Stat. 1160), Loans for seed, feed, fertilizer, fuel and ou... and crop production, and for assisting in .! forming local agricultural credit corpora- im tions, livestock loan companies, or like or- 2 ganizations.

10. Act of February 23. 1931 (46 Stat. 1276), Loans for seed, feed, fertilizer, fuel and oil.

11. Act of January 22, 1932 (47 Stat. 5), Loans for crop production.

12. Act of March 3, 1932 (47 Stat. 60), Loans for agricultural credit corporations, livestock loan companies, or like organizations.

13. Act of February 4, 1933 (47 Stat. 795), Loans for crop production and harvesting.

14. Act of February 23, 1934 (48 Stat. 354), Loans for crop production and harvesting.

15. Act of June 19, 1934 (48 Stat. 1056). Loans for emergency relief and for seed, feed, freight, summer fallowing and similar purposes.

16. Act of February 20, 1935 (49 Stat. 28), Loans for crop production and harvesting.

17. Act of March 21, 1935 (49 Stat. 50), appropriation to effectuate Act of February 20, 1935.

18. Act of April 8, 1935 (49 Stat. 115), E.O. 7305, Loans for crop production and harvest-4; ing.

19. Act of January 29, 1937 (50 Stat. 5).ji, Loans for crop production and harvesting.

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