(a) Limitation, suspension, or termination action may be instituted when there is any violation by an institution of applicable law, regulation, or of its school or lender agreement; any violation by an institution of limitations or of a Consent Agreement; or any form or degree of misrepresentation or fraud perpetrated by an institution or its employees in connection with the CELP or other State student financial aid programs.
(b) If the CELP official:
(1) receives information, determined by the CELP Official to be reliable, that an institution is violating any provision of applicable laws, regulations, or any applicable special arrangement, agreement, or limitation:
(2) determines that immediate action is necessary to prevent misuse of Federal or State funds; and
(3) determines that the likelihood of loss outweighs the importance of following the limitation, suspension, or termination procedures authorized in this article; the CELP Official shall, effective on the date on which a notice and statement of the basis of the action is mailed to the institution (by registered mail, return receipt requested), take emergency action consistent with section 30304 of this article. If the institution has a telecopier number which the CELP Official is able to obtain after a diligent search, the CELP Official shall, at the time of mailing, telecopy the notice and statement, without attachments, to the institution.
(c) An emergency action under this section may not exceed 30 days unless a limitation, suspension, or termination proceeding is initiated against the institution under this article before the expiration of that period, in which case the CELP Official may extend the emergency action to a point in time no later than the effective date of the limitation, suspension, or termination if the limitation, suspension, or termination is not contested, or the effective date of the decision of the CELP Official or the Hearing Officer if the limitation, suspension, or termination is contested.
(d) The CELP official shall provide the institution, if it so requests, an opportunity to show cause that the emergency action is unwarranted.
Education Code 69763(a)
United States Code, Title 20, Section 1078(b)(1)(T)&(U)
United States Code, Title 20, Section 1082(h) and (i) and 1094(c)
Code of Federal Regulations, Title 34, Section 668.81-668.97
(Amended by Register 90, No. 34.)