1997 Minnesota Statutes

     16D.09 Uncollectible debts. 

    When a debt is determined by a state agency to be 
 uncollectible, the debt may be written off by the state agency 
 from the state agency's financial accounting records and no 
 longer recognized as an account receivable for financial 
 reporting purposes.  A debt is considered to be uncollectible 
 when (1) all reasonable collection efforts have been exhausted, 
 (2) the cost of further collection action will exceed the amount 
 recoverable, (3) the debt is legally without merit or cannot be 
 substantiated by evidence, (4) the debtor cannot be located, (5) 
 the available assets or income, current or anticipated, that may 
 be available for payment of the debt are insufficient, (6) the 
 debt has been discharged in bankruptcy, (7) the applicable 
 statute of limitations for collection of the debt has expired, 
 or (8) it is not in the public interest to pursue collection of 
 the debt.  The determination of the uncollectibility of a debt 
 must be reported by the state agency along with the basis for 
 that decision as part of its quarterly reports to the 
 commissioner of finance.  Determining that the debt is 
 uncollectible does not cancel the legal obligation of the debtor 
 to pay the debt.  

    HIST: 1994 c 632 art 3 s 43; 1996 c 390 s 22