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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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