7 CFR § 1956.118 - Approval authority.
---
identifier: "/us/cfr/t7/s1956.118"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1956.118 - Approval authority."
title_number: 7
title_name: "Agriculture"
section_number: "1956.118"
section_name: "Approval authority."
chapter_name: "RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
subchapter_number: "H"
subchapter_name: "PROGRAM REGULATIONS"
part_number: "1956"
part_name: "DEBT SETTLEMENT"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; and 7 U.S.C. 1989."
regulatory_source: "51 FR 45434, Dec. 18, 1986, unless otherwise noted."
cfr_part: "1956"
---
# 1956.118 Approval authority.
District Directors cannot approve debt settlement actions. Therefore, they will make no statements to a debtor concerning the action that may be taken upon a debtor's application. Subject to this subpart, the compromise, adjustment, cancellation, or chargeoff of debts will be approved or rejected:
(a) By the State Director when the outstanding balance of the indebtedness involved in the settlement is less then $50,000, including principal, interest, and other charges.
(b) By the Administrator or his designee when the outstanding balance of the indebtedness involved in the settlement is $50,000 or more, including principal, interest, and other charges.