(b) In accordance with 31 CFR 285.12(c) and (g), we transfer legally enforceable administrative debts that are 120 calendar days or more delinquent to Treasury for debt collection services (i.e., cross-servicing). This requirement does not apply to any debt that:
- (1) Is in litigation or foreclosure;
- (2) Will be disposed of under an approved asset sale program within one year of becoming eligible for sale;
- (3) Has been referred to a private collection contractor for a period acceptable to the Secretary of the Treasury;
- (4) Is at a debt collection center for a period of time acceptable to Treasury (see paragraph (c) of this section);
- (5) Will be collected under internal offset procedures within three years after the debt first became delinquent; or
- (6) Is exempt from this requirement based on a determination by Treasury that exemption for a certain class of debt is in the best interest of the United States.