Waiver of adjustment or recovery of an overpayment of SSI benefits may be granted when (EXCEPTION: This section does not apply to a sponsor of an alien):

1. (a) The overpaid individual was without fault in connection with an overpayment, and

2. (b) Adjustment or recovery of such overpayment would either:

   1. (1) Defeat the purpose of title XVI, or
   2. (2) Be against equity and good conscience, or
   3. (3) Impede efficient or effective administration of title XVI due to the small amount involved.

[52 FR 8882, Mar. 20, 1987, as amended at 53 FR 16543, May 10, 1988]