any civil, military, or naval commission whatever.

(2) Officers and employees engaged in settlement of contracts under the Contract Settlement Act of 1944 may, as part of their official duties, advise and assist war contractors in preparing and presenting termination claims, in obtaining interim financing and in related matters.

(3) Former officers and employees of the Federal Government are prohibited, for a period of two years after termination of employment, from:

(i) Acting as counsel, attorney, or agent for, or in any way aiding in, prosecuting any claim against the United States which was pending in any Federal agency while they were serving as such officers or employees.

(ii) Prosecuting, or acting as counsel, attorney, or agent for prosecuting, any claim against the United States involving any subject matter directly connected with which such person was so employed or performed duty.

(4) No person employed by any Government agency shall, during the period such person is engaged in such employment or service, or for a period of two years after the time when such employment or service has ceased, act as counsel, attorney, or agent, or be employed as representative, in connection with any matter involving the disposition of surplus property by the agency in which such person was employed, if such person during his employment with such agency ratified, approved, or authorized the disposition of any surplus property pursuant to the provisions of the Surplus Property Act of 1944 or recommended any such approval, authorization, or ratification as part of his official duties.

(5) The provisions of this paragraph are taken from statutes which provide for fines up to $10,000 or imprisonment up to two years for violation. Subparagraphs (1), (3) (ii), and (4) of this paragraph are specifically applicable to commissioned officers assigned to duty in any Federal agency.

(Sec. 27, 58 Stat. 781, secs. 281, 283, 284, 62 Stat. 683; 18 U. S. C. 281, 283, 284, 50 U. S. C. App., 1636) [12 F. R. 3169]

239, 5 U. S. C. 1003 (a)) requires notice to be given of proposed rule-making, the notice shall indicate the procedure to be followed in the rule-making proceeding unless the procedure is prescribed by statute or by published rule of the Department.

§ 1.28 Petitions. Petitions by interested persons in accordance with the provisions of section 4 (d) of the Administrative Procedure Act (60 Stat. 239; 5 U. S. C. 1003 (d)) for the issuance, amendment or repeal of a rule may be filled with the official that issued or is authorized to issue the rule. All such petitions will be given prompt consideration and petitioners will be notified promptly of the disposition made of their petitions.

SUBPART C-CLAIMS

§ 1.51 Claims based on negligence, wrongful act, or omission. Any person claiming injury or loss alleged to have been caused by the negligence, wrongful act or omission of an employee of any agency of the Department of Agriculture may apply to the local office of such agency for a copy of the appropriate claim form (No. 28 for claim arising out of motor vehicle collisions and No. AD-24 for other claims). The completed claim should be filed with the office from which obtained. Field officials of the Soil Conservation Service and the Forest Service forward each completed form, together with an investigation report and recommendation, directly to the Office of the Solicitor, United States Department of Agriculture, Washington 25, D. C. The field officials of each other agency forward each completed form, together with an investigation report and recommendation, to the Washington office of the agency, which in turn submits the materials to the Solicitor's Office. Upon the basis of the facts and law involved, the Solicitor or the Associate Solicitor in charge of Forestry and General Legal Services allows or disallows the claim. After such determination, the Solicitor's Office notifies the claimant whether his claim has been allowed or disallowed. In the event a claim is allowed, the claimant is advised of the time and the method of payment.

[12 F. R. 6871]

AUTHORITY: §§ 2.1 to 2.7 issued under R. S. 161, 520, secs. 1, 2, 53 Stat. 1290; 5 U. S. C. 22, 511, 22 U. S. C. 501, 502.

SOURCE: §§ 2.1 to 2.7 appear at 9 F. R. 5031.

§ 2.1 Type of fellowship. Fellowships shall be of the intern-training type, consisting of instruction by the respective bureaus of the Department of Agriculture as follows:

(a) Bureau of Agricultural Economics (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 management, climatology, sedimentation, hydrology, agricultural and civil engineering.

§ 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 to 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 a 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 date of departure for his home, as follows: (1) Not exceeding $180 per month while under assignment to headquarters in a Department or agency of the Federal or a local government in a city of more than 100,000 population; or not exceeding $150 per month while under such assignment in a city of less than 100,000 population; and (2) not exceeding $135 per month while under assignment to receive training at colleges or universities and residing in quarters usually occupied by students in attendance thereat or in similar quarters, irrespective of the population of the city wherein the institution is located.

(b) Transportation expenses. Transportation expenses from the home of the applicant (or place in which appointment is accepted) to the place or places in the United States, its Territories, or possessions, where the studies and research are to be pursued, and return to the home of the applicant (or point of departure), including travel via

Washington, D. C., en route to the place of study or research and from the place of study or research to Washington, D. C., and return to that place, if necessary, for consultation with reference to the fellowship, and between places of study and research in the United States, its Territories or possessions, in accordance with the Standardized Government Travel Regulations and the act of June 3, 1926, as amended, in which connection claim for reimbursement may be made only for items in the following schedule and contingent upon prior authorization:

(1) Rail fare: 'First-class fare. If travel is performed on an extra-fare train, expenses in excess of the first-class fare must be borne by the traveler. No receipts are necessary. (Government transportation requests are to be used, if practicable, within the United States.)

(2) Pullman fare: 'Lower berth or parlor car seat. No receipts are necessary if Government transportation requests are used. If purchased with cash the Pullman stub must be attached to the reimbursement voucher.

(3) Steamer fare: 'Not exceeding the lowest minimum first-class fare of the ship on which travel is performed. American vessels must be used if available (section 901 of the Merchant Marine Act of 1936, 49 Stat. 2015. This requirement has been suspended with respect to appropriations for the fiscal year 1944 by section 302 of Public Law 216-78th Congress, approved December 23, 1943). No receipts are necessary.

(4) Airplane fare: 'Transportation by air will be allowed regardless of the cost when authorized by the head of the respective bureau. When air travel has not been specifically authorized, the traveler may proceed by air with the understanding that he may claim reimbursement therefor only in an amount not exceeding what it would have cost had the travel been performed by public conveyance over land or water. No receipts are necessary.

(5) Taxicab: At the beginning and termination of the journey and at all points where a change of conveyance is necessary while in a direct travel status. No receipts are necessary.

1In all cases, round trip tickets must be purchased if possible. In the event that the return portion of the ticket cannot be used, it should be returned to the respective bureau for collection of the refund.

(6) Excess baggage charges: For personal effects (not household furniture) which are not carried free by the transportation company. Receipts are necessary and they should indicate that the traveler has availed himself of the free allowance, if such an allowance is granted.

(7) Drayage or transfer of baggage: For the hauling of personal effects from home to the station or dock, et cetera. Receipts are not necessary but should be submitted if possible. Charges by porters for handling the bags or baggage will not be allowed.

(8) Steamer rug and steamer chair: Receipts are necessary. Charges for steamer cushions will not be allowed.

(9) Tips and gratuitous fees: Will not be reimbursed.

CROSS REFERENCE: For forms and procedures with respect to Government requests for transportation of passengers, see 4 CFR, Part 7.

(c) Per diem. Per diem in lieu of subsistence while in travel status proceeding from, and to, his home at the following rates: $6 over land and by air in and outside of the United States, and $4 aboard vessels outside of the United States. No per diem will be allowed concurrently with monthly allowances, but per diem may be substituted therefor at the rate of $6 per day for any period of authorized travel.

ances authorized; and shall describe in general terms the program of studies: Provided, however, That the head of the bureau concerned may in his discretion subsequently amend the course of studies and duration of the fellowship within the broad outlines of the prescribed option in order to develop a program better suited to the needs and capabilities of the individual fellow.

§ 2.7 Definitions. As used in the regulations in this part, the term "bureau" includes the Bureau of Agricultural Economics, the Extension Service, and the Soil Conservation Service of the United States Department of Agriculture. The term "heads of the respective bureaus" includes the Chief of the Bureau of Agricultural Economics, the Director of the Extension Service, and the Chief of the Soil Conservation Service.

Sec.

3.1

3.2

3.3

3.4

3.5

3.6

.3.7

3.8

3.9

Part 3-Debt Settlement

Purposes of the act and regulations. Definitions.

Settlement of indebtedness.

Investigations and findings.

Delegations of authority.

Forms and records.

Departmental Review Committee.
Penalties.

Indebtedness referred to Secretary of the Treasury or the Attorney General. 3.10 Scope of the act.

AUTHORITY: §§ 3.1 to 3.10 issued under sec. 1, 58 Stat. 836; 12 U. S. C. 1150. Statutory provisions interpreted or applied are cited to text in parentheses.

SOURCE: §§ 3.1 to 3.10 appear at 10 F. R. 807, redesignated at 13 F. R. 6903. Exceptions are noted following sections affected.

§3.1 Purposes of the act and regulations. The principal purposes of the act and of the regulations in this part are to provide means of: (a) Settling, by compromise, adjustment or cancellation, relatively small debts long past due and owing to the Government arising from loans or payments made under farm programs administered by the Department; (b) recovering by the Department of substantial sums which are found uncollectible when the indebtednesses are treated as full obligations, and which otherwise would probably never be collected; (c) clearing the accounts of balances so small as not to warrant continued efforts of collection; and (d) the clearing of the accounts of the records of indebtedness made uncollectible by

reason of the death or disappearance of the debtors.

The existence of the act will neither serve as grounds for any relaxation in the general collection policy of the Department nor should it serve as grounds for any lessening of the efforts of farmers to pay their indebtedness.

§3.2 Definitions. (a) "Department" means Department of Agriculture.

(b) "Indebtedness" with respect to any person, means his debt to the Government under each of the acts and programs listed in § 3.10, except that the total amount owed by any person under all loan, purchase, sale and other programs of the Commodity Credit Corporation with respect to a single commodity and without being limited to any crop year or marketing season shall be considered to be an "indebtedness".

(c) "Compromise" means final liquidation of the indebtedness through the immediate payment of a portion thereof, and acceptance by the United States of such payment in full satisfaction of the indebtedness.

(d) "Adjustment" means the scaling down of the amount of the indebtedness including interest, conditioned upon the payment of the adjusted amount at some specified future time or times; such adjustment 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, as amended at 11 F. R. 11984] § 3.3 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

herein prescribed. 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 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."

(11 U. S. C., sec. 1, et seq.) [10 F. R. 807, as amended at 12 F. R. 441]

§ 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 Production and Marketing Administration such delegation shall not be beyond the head of the highest field office having immediate jurisdiction over the act or program involved, 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. [13 F. R. 6903]

§ 3.6 Forms and records. The Office of Budget and Finance shall prescribe a uniform form or forms for application 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.