ML20210R881

Discusses 970807 Telcon Re Execution of Promissory Note in Payment of Civil Monetary Penalty Issued to Hagerstown Const Svcs,Inc on 970701

ML20210R881
Person / Time
Site:	15000019
Issue date:	09/02/1997
From:	Lieberman J NRC OFFICE OF ENFORCEMENT (OE)
To:	Herbert J AFFILIATION NOT ASSIGNED
References
EA-97-193, NUDOCS 9709030468
Download: ML20210R881 (10)

Text

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\ UNITED STATES s E NUCLEAR REGULATORY COMMISSION h[(

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WASHINGTON, D.C. 30666-0001 September _2, 1997 EA.97-193 Mr. John Herbert, Sr., President Hagerstown Construction Services, Inc.

1023 Maryland Avenue Hagerstown, Maryland 21740

SUBJECT:

PROMISSORY NOTE IN PAYMENT OF CIVIL MONETARY PENALTY

Dear Mr. Herbert:

This refers to the August 7, 1997 telephone conversation between you and Mr. Frank Costello, NRC, concerning execution of a Promissory Note in Payment of Civil Monetary Penalty (Note) in response to the Proposed Civil Monetary Penalty issued to Hagerstown Construction Services, Inc. on July 1, 1997. During the telephone conversation, you agreed to pay $2,750 over two years in settlement of the proposed civil monatary penalty. As specified in Section 2 of the enclosure, your first payment is due October 1, 1997, and on the first day of each month thereafter until the principle, interest and all other charges have been fully paid. The staff is satisfied with this agreement in light of your financial condition and, consistent with the public interest, agreed to this settlement.

You should read the enclosed " Promissory Note in Payment of the Civil Penalties" carefully. Please note that your signature constitutes a waiver of your right to contest the amount of the civil penalty and the underlying violations and empowers the

-United States to obtain a judgment against you without a hearing in the event that you fail to make a required payment.

You must sign in duplicate and return the Note along with your first installment payment by October 1, 1997, to James Lieberman,

-Director, Office of Enforcement, U. S. Nuclear Regulatory.

Commission, Mail Stop 7HS, Washington, D.C. 20555. Upon receipt of your-signed Note, we will promptly counter-sign it and send

.you a copy.

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In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice,"

a copy of this letter, its enclosure, and any further response will be placed in the NRC Public Document Room.

Sincerely, finv J/mesLieberman, Director

~ Office of Enforcement Docket No. 150-00019 Maryland License No MD-43-007-01

Enclosure:

As stated

t Promissory dote in Payment of the Civil Penalties Docket No. 150-00019 Maryland License No. MD-43-007-01 EA 97-193

1. Obligation - For value received, Hagerstown Construction Services, Inc. (hereafter referred to as the Maker) promises to pay to the order of the U.S. Nuclear Regulatory Commission the principal sum of $2,750 dollars, with interest accruing from October 1, 1997, at the rate of 5.00 percent per year. This note is being given for the purpose of refinancing and paying off an amount which constitutes the sum of the principal due and all unpaid interest and other charges owed to the United States on the civil penalties debt ($2,750) which has been assigned the control number captioned above. The Maker hereby acknowledges and admits the validity and amount of that debt, which the principal sum stated in this note is intended to repay. The Maker further acknowledges that execution of this note constitutes a waiver of the right to contest the amount of the civil penalties and the underlying violations on which it is based under Section 234c of the Atomic Energy Act of 1954, as amended, 42 U.S.C. S2282c.

2. Installments - This note is to be paid in monthly installments starting on October 1, 1997, plus interest on the unpaid principal balance, payable at the Nuclear Regulatory .

Commission, Washington, D.C., on or before the 1st day of the month, beginning on October 1, 1997, and continuing until either the principal sum and all interest and other charges assessed under the provisions of this note have been fully paid, or this note is considered to be in default under the provisions of paragraph 6 of this note. Payments will be mailed to the following address: ,

U. S. Nuclear Regulatory Commission Office of Enforcement ATTN: James Lieberman Mail Stop O-7H5 Washington, D.C. 20555 The following is a schedule of monthly installments exclusive of administrative charges and late-payment penalties:

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PAYMENT PAYMENT TOTAL INTEREST ADMIN. PRINCIPAL REMAINING NUMBER DATE PAYMENT AMOUNT AMOUNT AMOUNT BALANCE BEGINNING BALANCE....................................$2,750.00 1 1-Oct-97 122.00 11.46 110.54 2,639.46 2 1-Nov-97 122.00 11.00 111.00 2,528.46 3 1-Dec-97 122.70 10.54 111.46 2,416.99 4 1-Jan-98 122.00 10.07 111.93 2,305.06 5 1-Feb-98 122.00 9.60 112.40 2,192.67 6 1-Mar-98 122.00 9.14 112.86 2,079.80 7 1-Apr-98 122.00 8.67 113.33 1,966.47 8 1-May-98 122.00 8.19 113.81 1,852.66 9 1-Jun-98 122.00 7.72 114.28 1,738.38 10 1-Jul-98 122.00 7.24 114.76 1,623.62 11 1-Aug-98 122.00 6.77 115.23 1,508.39 12 1-Sep-98 122.00 6.28 115.72 1,392.67 13 1-Oct-98 122.00 5.80 116.20 1,276.48 14 1-Nov-98 122.00 5.32 116.68 1,159.80 15 1-Dec-98 122.00 4.83 117.17 1,042.63 16 1-Jan-99 122.00 4.34 117.66 924.97 17 1-Feb-99 122.00 3.85 118.15 806.83 18 1-Mar-99 122.00 3.36 118.64 688.19 19 1-Apr-99 122.00 2.87 110.13 569.06 20 1-May-99 122.00 2.37 119.63 449.43 21 1-Jun-99 122.00 1.87 120.13 329.30 22 1-Jul-99 122.00 1.37 120.63 208.67 23 1-Aug-99 122.00 0.87 121.13 87.54 24 1-Sep-99 87.91 0.36 87.54 0.00 TOTAL $2,893.91 $143.91 $2,750.00

3. Administrative Charges - Administrative charges to cover the costs incurred by the United States in handling and processing past-due amounts will be assessed at the rate of $10.00 for each payment more than thirty (30) days past due.

4. Late Payment Penalties - Late payment penalties will be assessed on any amount more than ninety (90) days past due, at the rate of eighteen (18) percent'per year.

5. Payment Crediting - The payments that=the Maker makes under this note will be credited as of the date received by the U.S.

= Nuclear Regulatory Commission first to outstanding penalties and administrative charges; second to accrued interest; and third to the outstanding principal sum. Any payments that the Maker made to the United States on this debt during the period from the date from which interest accrues under this note (as specified in paragraph 1) until the effective date of this note (as specified in paragraph 11) shall be applied to the principal sum, interest, and other charges accruing under this note in accordance with the provisions of this paragraph.

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6. Default, Acceleration, and Other Remedies - If any installment shall remain unpaid for a period of thirty (30) days or more, this note shall, at the option of the United States, be considered to be in default. In the event of default, the full amount of the principal sum, together with any accrued interest and other charges assessed under this note, let ,ayments actually received by the United States from the shall be due and payable in full immediately, without the .'or further demands or notices to the Maker. Furthermore, in . at event, the Maker agrees that the United States may exercise any collection options legally available to it, including, but not limited to, taking administrative offset, hiring a private debt collection agency, filing adverse credit reports to local and national credit bureaus, referring the Maker's account for legal action, and suspending or revoking any license or other privilege which the U.S. Nuclear Regulatory Commission has granted to the Maker.

7. Default Costs and Fees - In the event of default, the Maker agrees to pay all reasonable collection costs, court costs, and attorney's fees incurred by the United States as a result of the default and any appropriate collection actions taken by the United States.

8. Confess Judgement Provision - The Maker, if permitted by Controlling Law (as specified in paragraph 9), does hereby authorize and empower a United States Attorney, any of his assistants, or any attorney of any court of record, State or federal, to appear for the Maker and to enter and confess judgement against the Maker for the entire amount of this obligation, with interest, less payments actually made, at any time after the same becomes due and payable, as herein provided, in any court of record, Federal or State; to waive the issuance and service of process upon the Maker in any suit on the obligation; to waive any venue requirement in such suit; to release all errors which may intervene in entering upon such judgement or in issuing any execution thereon; and to consent to immediate execution on said judgement. The Maker does hereby ratify and confirm all that said attorney may do by virtue hereof.

9. Controlling Law - Except where controlled by Federal law, all disputes concerning this note shall be controlled by the law of the jurisdiction in which the Maker is incorporated at the time this note is signed.

10. Changes - The provisions of this note may not be changed except by a written agreement which specifies the agreed-upon changes and which is signed by the Maker and an authorized representative of the United States.

- . . . _ _ _ . _ _ . ~ . _ . . . _ . . . _ _ . . , _ _ . . ~ . . - ._ _ ._ .. _ . . _ .__ _. _ ..~ _ . .._ _ _ _ _ _ _ . . _.

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11. -- Legal Effect - This note shall not be effective or legally binding-upon the Maker or the United States until it has been first signed.by the Maker and then countersigned by an i

appropriate official of the United States in the spaces indicated i.

below. .The United States'will promptly provide the Maker a copy of this note after it has been countersigned.

12. Signatures and certification - I, as the Maker, do hereby certify-that I have read and understood the terms of this note.

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{ SIGNED This day of , 1997, 1

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. Maker's Signature ' Printed Name Title 1-i Street Address l-W 4

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, e I am an-authorizing; official of the Maker and do certify that the

. - Makariis incorporated--in the State of at the time this note is signed and that the signature above is that of an individual authorized to enter into a promissory note for the Maker.-

4 SIGNED-i I Signature Printed Name Title Address 4

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As authorized representative of the United-States, I hereby agree

to the payment of this debt owed by the Maker to the United-

States under the terms of the installment agreement evidenced by

this note.

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COUNTERSIGNED:

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, Representative's Representative's Representative's Signature Name- Title and' Agency J

1 Date: Countersigned: , 1997 U. S. Nuclear Regulatory Commission-4 4

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11. Legal Effect :Thisinote shall not be effective or legally binding upon the Maker-or the United States until-it has been

first signediby the Maker and then countersigned by.an appropriate' official of the-United States in the spaces indicated below.= The United States will promptly provide the Maker a copy of this note after it has been countersigned.

L12. .-Signatures and Certification - I, as'the Maker,-do hereby-certify that'I have' read and understood the terms of this note, l

SIGNED: This._, day of , 1997.

L Maker's Signature- Printed Name Title Street Address Taxpayer _ Identification Number Telephone Number 4

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e t-I am an: authorizing official of the Maker and do certify that the Maker is incorporated in.the State of at the time this note is signed and that the signature above is that of an individual authorized to enter into a promissory note for the Maker.

SIGNED:

j Signature Printed Name Title Address As authorized representative of the United States, I hereby agree I

to:the payment of this: debt owed by the Maker to the United I States under the terms of the installment agreement evidenced by this-note.

COUNTERSIGNED:

Representative's Representative's Representative's Signature Name Title and Agency

-Date Countersigned: , 1997 U. S. Nuclear Regulatory Commission et & S

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.Hagerstownl Construction

Distribution' SECY <

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