[Code of Federal Regulations]
[Title 2, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 2CFR801.1110]

[Page 194]
 
                     TITLE 2--GRANTS AND AGREEMENTS
 
              CHAPTER VIII--DEPARTMENT OF VETERANS AFFAIRS
 
PART 801_NONPROCUREMENT DEBARMENT AND SUSPENSION--Table of Contents
 
   Subpart J_Limited Denial of Participation (Department of Veterans 
      Affairs Optional Subpart for OMB Guidance at 2 CFR Part 180).
 
Sec. 801.1110  Scope and period of a limited denial of participation.

    (a) Scope and period. The scope of a limited denial of participation 
shall be as follows:
    (1) A limited denial of participation extends only to participation 
in the VA Loan Guaranty Program and shall be effective only within the 
geographic jurisdiction of the office or offices imposing it.
    (2) The sanction may be imposed for a period not to exceed 12 months 
except for unresolved construction deficiencies. In cases involving 
construction deficiencies, the builder may be excluded for either a 
period not to exceed 12 months or for an indeterminate period which ends 
when the deficiency has been corrected or otherwise resolved in a manner 
acceptable to VA.
    (b) Effectiveness. The sanction shall be effective immediately upon 
issuance and shall remain effective for the prescribed period. If the 
cause for the limited denial of participation is resolved before the 
expiration of the prescribed period, the official who imposed the 
sanction may terminate it. The imposition of a limited denial of 
participation shall not affect the right of the Department to suspend or 
debar any person under this part.
    (c) Affiliates. An affiliate or organizational element may be 
included in a limited denial of participation solely on the basis of its 
affiliation, and regardless of its knowledge of or participation in the 
acts providing cause for the sanction. The burden of proving that a 
particular affiliate or organizational element is capable of meeting VA 
requirements and is currently a responsible entity and not controlled by 
the primary sanctioned party (or by an entity that itself is controlled 
by the primary sanctioned party) is on the affiliate or organizational 
element.