[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR74.14]

[Page 106-107]
 
                           TITLE 34--EDUCATION
 
PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 
 
                    Subpart B_Pre-Award Requirements
 
Sec. 74.14  Special award conditions.

    (a) The Secretary may impose special award conditions, if an 
applicant or recipient--
    (1) Has a history of poor performance;
    (2) Is not financially stable;
    (3) Has a management system that does not meet the standards 
prescribed in this part;
    (4) Has not conformed to the terms and conditions of a previous 
award; or
    (5) Is not otherwise responsible.
    (b) If special award conditions are established under paragraph (a) 
of this section, the Secretary notifies the applicant or recipient of--
    (1) The nature of the additional requirements;
    (2) The reason why the additional requirements are being imposed;
    (3) The nature of the corrective action needed;
    (4) The time allowed for completing the corrective actions; and

[[Page 107]]

    (5) The method for requesting reconsideration of the additional 
requirements imposed.
    (c) Any special conditions are promptly removed once the conditions 
that prompted them have been corrected.

(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)