---
kind: "section"
citation: "45 C.F.R. § 1606.4"
title: "45"
number: "1606.4"
heading: "Grounds for debarment."
url: "https://uscodex.org/cfr/45/1606.4"
---

# §1606.4. Grounds for debarment.

- (a) The Corporation may debar a recipient, on a showing of good cause, from receiving an additional award of financial assistance from the Corporation.
- (b) **As used in paragraph (a) of this section, “good cause” means—**
  - (1) A termination of financial assistance to the recipient pursuant to [part 1640](/cfr/45/part1640.md) of this chapter;
  - (2) A termination of financial assistance in whole of the most recent grant or contract of financial assistance;
  - (3) The substantial violation by the recipient of the restrictions delineated in § [1610.2(a)](/cfr/45/1610.2.md?p=a) and [(b)](/cfr/45/1610.2.md?p=b) of this chapter, provided that the violation occurred within 5 years prior to the receipt of the debarment notice by the recipient;
  - (4) **Knowing entry by the recipient into—**
    - (i) Any agreement or arrangement, including, but not limited to, a subgrant, subcontract, or other similar agreement, with an entity debarred by the Corporation during the period of debarment if so precluded by the terms of the debarment; or
    - (ii) An agreement for professional services with an independent public accountant or other auditor debarred by the Corporation during the period of debarment if so precluded by the terms of the debarment; or
  - (5) **The filing of a lawsuit by a recipient, provided that the lawsuit—**
    - (i) Was filed on behalf of the recipient as plaintiff, rather than on behalf of a client of the recipient;
    - (ii) Named the Corporation, or any agency or employee of a Federal, State, or local government as a defendant;
    - (iii) Seeks judicial review of an action by the Corporation or such government agency that affects the recipient's status as a recipient of Federal funding, except for a lawsuit that seeks review of whether the Corporation or agency acted outside of its statutory authority or violated the recipient's constitutional rights; and
    - (iv) **Was initiated after December 23, 1998.**

## Notes

### Authority

Authority: 42 U.S.C. 2996e(b)(1), 2996f(a)(3), and 2996f(d); Pub. L. 105-119, Title V, Secs. 501(b) and (c), 502, 503, and 504, 111 Stat. 2440, 2510-12; Pub. L. 104-134, Title V, Sec. 503(f), 110 Stat. 1321, 1321-53.

### Source

Source: 78 FR 10093, Feb. 13, 2013, unless otherwise noted.