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42 U.S. Code § 5174a. Flexibility
(a) Waiver authority
(1) DefinitionIn this subsection, the term “covered assistance” means assistance provided—
(A)
under section 5174 of this title; and
(B)
in relation to a major disaster or emergency declared by the President under section 5170 or 5191, respectively, of this title on or after October 28, 2012.
(2) AuthorityNotwithstanding section 3716(e) of title 31, the Administrator—
(A) except as provided in subparagraph (B), shall—
(i)
waive a debt owed to the United States related to covered assistance provided to an individual or household if the covered assistance was distributed based on an error by the Agency and such debt shall be construed as a hardship; and
(ii)
waive a debt owed to the United States related to covered assistance provided to an individual or household if such assistance is subject to a claim or legal action, including in accordance with section [1] of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5160); and
(B)
may not waive a debt under subparagraph (A) if the debt involves fraud, the presentation of a false claim, or misrepresentation by the debtor or any party having an interest in the claim.