[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: 7CFR1469]

[Page 711-712]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1469_CONSERVATION SECURITY PROGRAM--Table of Contents
 
                    Subpart B_Contracts and Payments
 
Sec.  1469.25  Contract violations and termination.

    (a) If the NRCS determines that a participant is in violation of the 
terms of a contract, or documents incorporated by reference into the 
contract, NRCS will give the participant a reasonable time, as 
determined by the State Conservationist, to correct the violation and 
comply with the terms of the contract and attachments thereto. If the 
violation continues, the State Conservationist may terminate the 
conservation stewardship contract.
    (b) Notwithstanding the provisions of paragraph (a) of this section, 
a contract termination is effective immediately upon a determination by 
the State Conservationist that the participant has: submitted false 
information; filed a false claim; engaged in any act for which a finding 
of ineligibility for payments is permitted under this part; or taken 
actions NRCS deems to be sufficiently purposeful or negligent to warrant 
a termination without delay.
    (c) If NRCS terminates a contract due to breach of contract, the 
participant will forfeit all rights for future payments under the 
contract, and must refund all or part of the payments received, plus 
interest, and liquidated damages as determined in accordance with part 
1403 of this chapter. The State Conservationist may require 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.
    (d) If NRCS terminates a contract due to breach of contract, or the 
participant voluntarily terminates the contract before any contractual 
payments have been made, the participant will forfeit all rights for 
further payments under the contract, and must pay such liquidated 
damages as are prescribed in the contract. The State Conservationist has 
the option to waive the liquidated damages, depending upon the 
circumstances of the case.
    (e) When making any contract termination decisions, the State 
Conservationist 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 including 
natural disasters or events.
    (f) The participant may voluntarily terminate a contract, without 
penalty or repayment, if the State Conservationist determines that the 
contract terms and conditions have been fully complied with before 
termination of the contract.

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    (g) In carrying out this section, the State Conservationist may 
consult with the local conservation district.