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FAP

Citations: (R)682.804
AsOfDate: 12/31/95

Failure to comply with Plan for Doing


Business.

(a) If the Secretary finds that an Authority has failed


to comply with any requirement of its Plan or of this subpart, the
Secretary takes actions necessary to protect the interests of the
United States. These actions may include the following:

(1) Withholding payment of special allowances.

(2) Suspending or revoking approval of the Plan.

(3) Determining that loans made or purchased with


the proceeds of a tax-exempt obligation by the Authority or any
entity acting for the Authority after the date of suspension or
revocation are ineligible for payments of special allowances.

(4) Requiring reimbursement from the Authority of


special allowances paid on loans made or purchased by the
Authority or any entity acting for the Authority.

(b) The Secretary's decision to require repayment of


funds by an Authority, to withhold payments of special
allowance, or to suspend or revoke approval of a Plan does not
become final until the Secretary provides the Authority with
written notice of the intended action and an opportunity to be
heard thereon. However, the Secretary may withhold payments
or suspend approval of the Plan prior to giving notice and
opportunity to be heard if the Secretary finds that emergency
action necessary to prevent substantial harm to Federal
interests.

(c) Once final, the Secretary's decision to require a


repayment of funds or to take other remedial action against an
Authority under this section is conclusive and binding on the
Authority.

(Authority: 20 U.S.C. 1082, 1087-1)