---
kind: "section"
citation: "7 C.F.R. § 634.29"
title: "7"
number: "634.29"
heading: "Violations."
url: "https://uscodex.org/cfr/7/634.29"
---

# §634.29. Violations.

- (a) **Actions causing violations.** The following actions constitute violation of a contract by a participant:
  - (1) **Knowingly or negligently damaging or causing BMP's to become impaired.**
  - (2) Adopting a land use or practice during the contract period which tends to defeat the purposes of the program.
  - (3) **Failing to comply with the terms of the contract.**
  - (4) **Filing a false claim.**
  - (5) **Misusing authorizations for payment.**
- (b) **Contract termination as a result of violations.**
  - (1) By signing a contract, the participant agrees to forfeit all rights to further cost-sharing payments under a contract and to refund all cost-share payments received, with interest, if the administering agency, with the concurrence of the State Conservationist, NRCS, determines that:
    - (i) There was a violation of the contract during the time the participant had control of the land; and
    - (ii) **The violation was of such a nature as to warrant termination of the contract.**
  - (2) The participant shall be obligated to refund all cost-share payments and all cost shares paid under authorizations, with interest, at the rates established by the Secretary of the Treasury pursuant to Pub. L. 92-41, 85 Stat. 97.
- (c) **Payment adjustments and refunds resulting from violations.**
  - (1) By signing a contract, the participant agrees to refund cost-share payments received under the contract or to accept payment adjustments if the administering agency determines and the State Conservationist, NRCS, concurs that:
    - (i) There was a violation of the contract during the time the participant had control of the land; and
    - (ii) **The nature of the violation does not warrant termination of the contract.**
  - (2) Payment adjustments may include decreasing the rate of cost share, or deleting from the contract a cost-share commitment, or withholding cost-share payments earned but not paid. The participant who signs the contract may be obligated to refund cost-share payments.

## Notes

### Authority

Authority: Sec. 35, Pub. L. 95-217, 91 Stat. 1579 (33 U.S.C. 1288).

### Source

Source: 43 FR 50855, Nov. 1, 1978, unless otherwise noted.