Laws: Cases and Codes : U.S. Code : Title 15 : Section 1366


   
U.S. Code as of: 01/19/04
Section 1366. Termination of payments for noncompliance with law or diversion of funds

      Whenever the Secretary, after reasonable notice and opportunity
    for hearing to any designated agency or participating institution
    receiving funds under this chapter finds that - 
        (a) the agency or institution is not complying substantially
      with provisions of this chapter, with the regulations promulgated
      by the Secretary, or with the approved annual technical services
      program; or
        (b) any funds paid to the agency or institution under the
      provisions of this chapter have been lost, misapplied, or
      otherwise diverted from the purposes for which they were paid or
      furnished - 

    the Secretary shall notify such agency or institution that no
    further payments will be made under the provisions of this chapter
    until he is satisfied that there is substantial compliance or the
    diversion has been corrected or, if compliance or correction is
    impossible, until such agency or institution repays or arranges for
    the repayment of Federal funds which have been diverted or
    improperly expended.



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