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Article 11. Imposition of Civil Penalties, and Limitation, Suspension and Termination of Eligibility Under CGSLP and CLAS Program. Purpose and Scope.   

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Any action taken under this subpart or any other provision of these rules will not affect an institution's responsibility to fulfill the requirements of the Act, regulations or CELP policies and procedures applicable to outstanding CELP loans or the institution's rights, if any, to benefits or payments that are based on the institution's prior participation in the CELP.

This subpart does not apply to:

(a) a determination that an institution fails to meet the definition of either an "institution of higher education" as defined in Section 1085 (b) of 20 U.S.C., or a "vocational school" as defined in Section 1085 (c) of 20 U.S.C.;

(b) an institution fails to meet the definition of "lender" in Section 682.200 and 683.10 of 34 C.F.R. or;

(c) of a school's loss of lender eligibility by the Secretary of the U.S. Department of Education (USED) due to its default experience under Sections 682.611 and 683.90 of 34 C.F.R.

In any such case, the CELP Official terminates the participation of the institution immediately by sending notice of such termination.

Authority cited:

Education Code 69763


United States Code, Title 20, Section 1078(b) (2), 1078-2(a)

Code of Federal Regulations, Title 34, Section 682.401(c) (2) (ii), 683.31(c) (2) (ii);

Education Code 69763

(Amended by Register 91, No. 29.)