[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR307.21]

[Page 632-633]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 307_ECONOMIC ADJUSTMENT ASSISTANCE INVESTMENTS--Table of Contents
 
Subpart B_Special Requirements for Revolving Loan Funds and Use of Grant 
                                  Funds
 
Sec.  307.21  Termination of Revolving Loan Funds.

    (a) EDA may suspend or terminate an RLF Grant for cause, including 
but not limited to the following reasons:
    (1) Failure to operate the RLF in accordance with the Plan, the RLF 
Grant or this part;
    (2) Failure to obtain prior EDA approval for material changes to the 
Plan, including provisions for administering the RLF;
    (3) Failure to submit timely progress, financial and audit reports 
as required by the RLF Grant and Sec.  307.14; and
    (4) Failure to comply with the conflicts of interest provisions set 
forth in Sec.  302.17.
    (b) EDA may approve a request from an RLF Recipient to terminate an 
RLF Grant. The RLF Recipient must compensate the Federal government for 
the Federal Share of the RLF property, including the current value of 
all outstanding RLF loans. However, with EDA's prior approval, upon a 
showing of compelling circumstances, the RLF Recipient may use for other 
economic development activities a portion of

[[Page 633]]

RLF property that EDA determines is attributable to RLF Income.
    (c) Upon termination, distribution of proceeds shall occur in 
accordance with Sec.  307.20(d).