(a) If a recipient fails to comply with the expenditure required by this part and if that recipient fails without good cause to seek a waiver during the term of the grant or contract, the Corporation shall withhold from the recipient's support payments an amount equal to the difference between the amount expended on PAI and twelve and one-half percent (121/2%) of the recipient's basic field award.
(b) The withholding of funds under this section shall not be construed as any action under45 CFR part 1606.
(c) Any funds withheld by the Corporation pursuant to this section shall be made available by the Corporation for use in providing legal services in the recipient's service area through PAI programs. Disbursement of these funds shall be made through a competitive solicitation and awarded on the basis of efficiency, quality, creativity, and demonstrated commitment to PAI service delivery to low-income people.
(d) The withholding of funds under this section shall not be construed as a termination of financial assistance underpart 1606 of these regulations or a denial of refunding under part 1625 of these regulations.
[50 FR 48591, Nov. 26, 1985, as amended at 78 FR 10097, Feb. 13, 2013]
Title 45 published on 2014-10-01.
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