[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR60.43]



[Page 342]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 60_HEALTH EDUCATION ASSISTANCE LOAN PROGRAM--Table of Contents

 

                     Subpart D_The Lender and Holder

 

Sec. 60.43  Limitation, suspension, or termination of the eligibility 

of a HEAL lender or holder.



    (a) The Secretary may limit, suspend, or terminate the eligibility 

under the HEAL program of an otherwise eligible lender or holder that 

violates or fails to comply with any provision of title VII, part A, 

subpart I of the Act as amended (42 U.S.C. 292-292p), these regulations, 

or agreements with the Secretary concerning the HEAL program. Prior to 

terminating a lender or holder's participation in the program, the 

Secretary will provide the entity an opportunity for a hearing in 

accordance with the procedures under paragraph (b) of this section.

    (b) The Secretary will provide any lender or holder subject to 

termination with a written notice, sent by certified mail, specifying 

his or her intention to terminate the lender or holder's participation 

in the program and stating that the entity may request, within 30 days 

of the receipt of this notice, a formal hearing. if the entity requests 

a hearing, it must, within 90 days of the receipt of the notice, submit 

material, factual issues in dispute to demonstrate that there is cause 

for a hearing. These issues must be both substantive and relevant. The 

hearing will be held in the Washington, DC metropolitan area. The 

Secretary will deny a hearing if:

    (1) The request for a hearing is untimely (i.e., fails to meet the 

30-day requirement);

    (2) The lender or holder does not provide a statement of material, 

factual issues in dispute within the 90-day required period; or

    (3) The statement of factual issues in dispute is frivolous or 

inconsequential.



In the event that the Secretary denies a hearing, the Secretary will 

send a written denial, by certified mail, to the lender or holder 

setting forth the reasons for denial. If a hearing is denied, or if as a 

result of the hearing, termination is still determined to be necessary, 

the lender or holder will be terminated from participation in the 

program. An entity will be permitted to reapply for participation in the 

program when it demonstrates, and the Secretary agrees, that it is in 

compliance with all HEAL requirements.

    (c) This section does not apply to a determination that a HEAL 

lender fails to meet the statutory definition of an ``eligible lender.''

    (d) This section also does not apply to administrative action by the 

Department of Health and Human Services based on any alleged violation 

of:

    (1) Title VI of the Civil Rights Act of 1964, which is governed by 

45 CFR part 80;

    (2) Title IX of the Education Amendments of 1972, which is governed 

by 45 CFR part 86;

    (3) The Family Educational Rights and Privacy Act of 1974 (section 

438 of the General Education Provisions Act, as amended), which is 

governed by 34 CFR part 99; or

    (4) Title XI of the Right to Financial Privacy Act of 1978, Pub. L. 

95-630 (12 U.S.C. 3401-3422).



(Approved by the Office of Management and Budget under control number 

0915-0144)



[48 FR 38988, Aug. 26, 1983, as amended at 57 FR 28799, June 29, 1992; 

58 FR 67349, Dec. 21, 1993]



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