[Code of Federal Regulations]
[Title 7, Volume 12]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1930.106]

[Page 199]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                         AGRICULTURE (CONTINUED)
 
PART 1930--GENERAL--Table of Contents
 
    Subpart C--Management and Supervision of Multiple Family Housing 
                     Borrowers and Grant Recipients
 
Sec. 1930.106  Project operations.

    Project operations shall be conducted to meet the actual needs and 
necessary expenses of the property or for any other purpose authorized 
under Agency regulations. Whoever willfully uses, or authorizes the use, 
of any part of the rents, assets, proceeds, income, or other funds 
derived from such property for unauthorized purposes is subject to 
penalty. This includes an owner, agent, or manager, or person who is 
otherwise in custody, control, or possession of property that is 
security for a multifamily housing loan. Those violating these 
provisions are subject to penalties set out under Agency regulations and 
the law. Under law (42 U.S.C. 1484 and 1485) federal penalties 
consisting of fines of not more than $250,000 or imprisonment of not 
more than five years, or both, may be imposed for operating a project in 
a manner inconsistent with the provisions of this section.

[62 FR 25065, May 7, 1997]