Creditor forgiveness of debts owed by ongoing committees; Commission review.

CFR · 2024-01-01 · US · Title 11

(a) (1) The creditor has exercised reasonable diligence in attempting to locate the ongoing committee and has been unable to do so; or (2) The ongoing committee— (i) Does not have sufficient cash on hand to pay the creditor; (ii) Has receipts of less than $1000 during the previous twenty-four months; (iii) Has disbursements of less than $1000 during the previous twenty-four months; and (iv) Owes debts to other creditors of such magnitude that the creditor could reasonably conclude that the ongoing committee will not pay this particular debt. (b) (1) The terms of the initial extension of credit and a description of the terms under which the creditor has extended credit to nonpolitical debtors of similar risk and size of obligation; (2) A description of the efforts made by the candidate or the ongoing committee to satisfy the debt; (3) A description of the remedies pursued by the creditor to obtain payment of the debt and a comparison to the remedies customarily pursued by the creditor in similar circumstances involving nonpolitical debtors; and (4) An indication that the creditor has forgiven other debts involving nonpolitical debtors in similar circumstances, if any. (c)

official document · source cfr-2024 · id 11:§ 116.8