---
kind: "section"
citation: "2 C.F.R. § 801.1105"
title: "2"
number: "801.1105"
heading: "Cause for a limited denial of participation."
url: "https://uscodex.org/cfr/2/801.1105"
---

# §801.1105. Cause for a limited denial of participation.

- (a) **Causes.** A limited denial of participation shall be based upon adequate evidence of any of the following causes:
  - (1) Irregularities in a participant's or contractor's performance in the VA loan guaranty program;
  - (2) Denial of participation in programs administered by the Department of Housing and Urban Development or the Department of Agriculture, Rural Housing Service;
  - (3) Failure to satisfy contractual obligations or to proceed in accordance with contract specifications;
  - (4) Failure to proceed in accordance with VA requirements or to comply with VA regulations;
  - (5) Construction deficiencies deemed by VA to be the participant's responsibility;
  - (6) Falsely certifying in connection with any VA program, whether or not the certification was made directly to VA;
  - (7) Commission of an offense or other cause listed in [§ 180.800](/cfr/2/180.800.md);
  - (8) Violation of any law, regulation, or procedure relating to the application for guaranty, or to the performance of the obligations incurred pursuant to a commitment to guaranty;
  - (9) Making or procuring to be made any false statement for the purpose of influencing in any way an action of the Department.
  - (10) **Imposition of a limited denial of participation by any other VA field facility.**
- (b) **Indictment.** A criminal indictment or information shall constitute adequate evidence for the purpose of limited denial of participation actions.
- (c) **Limited denial of participation.** Imposition of a limited denial of participation by a VA field facility shall, at the discretion of any other VA field facility, constitute adequate evidence for a concurrent limited denial of participation. Where such a concurrent limited denial of participation is imposed, participation may be restricted on the same basis without the need for an additional conference or further hearing.

## Notes

### Authority

Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235; 38 U.S.C. 501(a) and 3703(c).

### Source

Source: 72 FR 30240, May 31, 2007, unless otherwise noted.