[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1468]

[Page 692-693]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1468_CONSERVATION FARM OPTION--Table of Contents
 
                           Subpart B_Contracts
 
Sec.  1468.25  Contract violations and termination.

    (a)(1) If it is determined that a participant is in violation of the 
provisions of this part, or the terms of the contract including portions 
of the contract that incorporate transferred obligations from CRP or 
EQIP contracts, or WRP cost-share agreements, CCC will give the 
participant written notice of a reasonable time to correct the violation 
and comply with the terms of the contract and attachments thereto,

[[Page 693]]

as determined by the FSA county committee, in consultation with NRCS. If 
a participant continues in violation after the time to comply has 
elapsed, the FSA county committee may, in consultation with NRCS, 
terminate the CFO contract.
    (2) Notwithstanding the provisions of paragraph (a)(1) of this 
section, a contract termination shall be effective immediately upon a 
determination by the FSA county committee, in consultation with NRCS, 
that the participant has submitted false information, filed a false 
claim, or engaged in any act for which a finding of ineligibility for 
payments is permitted under the provisions of Sec.  1468.35 of this 
part, or in a case in which the actions of the party involved are deemed 
to be sufficiently purposeful or negligent to warrant a termination 
without delay.
    (b)(1) If CCC terminates a contract, the participant shall forfeit 
all rights for future payments under the contract and shall refund all 
or part of the payments received, plus interest, determined in 
accordance with part 1403 of this chapter. CCC has the option of 
requiring only partial refund of the payments received if a previously 
installed conservation practice can function independently, is not 
affected by the violation or other conservation practices that would 
have been installed under the contract, and the participant agrees to 
operate and maintain the installed conservation practice for the life 
span of the practice.
    (2) If CCC terminates a contract for any reason stated above, before 
any contractual payments have been made, the participant shall forfeit 
all rights for further payments under the contract and shall pay such 
liquidated damages as are prescribed in the contract.
    (3) When making all contract termination decisions, CCC may reduce 
the amount of money owed by the participant by a proportion which 
reflects the good-faith effort of the participant to comply with the 
contract, or the hardships beyond the participant's control that have 
prevented compliance with the contract.
    (4) The participant may voluntarily terminate a contract without 
penalty, if CCC determines that such termination would be in the public 
interest.