[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR634.29]

[Page 424]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634--RURAL CLEAN WATER PROGRAM--Table of Contents
 
                  Subpart C--Participant RCWP Contracts
 
Sec. 634.29  Violations.

    (a) Actions causing violations. The following actions constitute 
violation of a contract by a participant:
    (1) Knowingly or negligently damaging or causing BMP's to become 
impaired.
    (2) Adopting a land use or practice during the contract period which 
tends to defeat the purposes of the program.
    (3) Failing to comply with the terms of the contract.
    (4) Filing a false claim.
    (5) Misusing authorizations for payment.
    (b) Contract termination as a result of violations. (1) By signing a 
contract, the participant agrees to forfeit all rights to further cost-
sharing payments under a contract and to refund all cost-share payments 
received, with interest, if the administering agency, with the 
concurrence of the State Conservationist, NRCS, determines that:
    (i) There was a violation of the contract during the time the 
participant had control of the land; and
    (ii) The violation was of such a nature as to warrant termination of 
the contract.
    (2) The participant shall be obligated to refund all cost-share 
payments and all cost shares paid under authorizations, with interest, 
at the rates established by the Secretary of the Treasury pursuant to 
Pub. L. 92-41, 85 Stat. 97.
    (c) Payment adjustments and refunds resulting from violations. (1) 
By signing a contract, the participant agrees to refund cost-share 
payments received under the contract or to accept payment adjustments if 
the administering agency determines and the State Conservationist, NRCS, 
concurs that:
    (i) There was a violation of the contract during the time the 
participant had control of the land; and
    (ii) The nature of the violation does not warrant termination of the 
contract.
    (2) Payment adjustments may include decreasing the rate of cost 
share, or deleting from the contract a cost-share commitment, or 
withholding cost-share payments earned but not paid. The participant who 
signs the contract may be obligated to refund cost-share payments.