34 C.F.R. § 682.704 Emergency action.
Title 34 - Education
(a) The Secretary, or a designated Departmental official, may take emergency action to stop the issuance of guarantee commitments by the Secretary and guarantee agencies and to withhold payment of interest benefits and special allowance to a lender if the Secretary— (1) Receives reliable information that the lender or a third-party servicer with which the lender contracts is in violation of applicable laws, regulations, special arrangements, agreements, or limitations entered into under the authority of statutes applicable to Title IV of the HEA pertaining to the lender's portfolio of loans; (2) Determines that immediate action is necessary to prevent the likelihood of substantial losses by the Federal Government, parent borrowers, or students; and (3) Determines that the likelihood of loss exceeds the importance of following the procedures for limitation, suspension, or termination. (b) The Secretary begins an emergency action by notifying the lender or third-party servicer, by certified mail, return receipt requested, of the action and the basis for the action. (c) The action becomes effective on the date the notice is mailed to the lender or third-party servicer. (d)(1) An emergency action does not exceed 30 days unless a limitation, suspension, or termination proceeding is begun before that time expires. (2) If a limitation, suspension, or termination proceeding is begun before the expiration of the 30-day period— (i) The emergency action may be extended until completion of the proceeding, including any appeal to the Secretary; and (ii) Upon the written request of the lender or third-party servicer, the Secretary may provide the lender or servicer with an opportunity to demonstrate that the emergency action is unwarranted. (Authority: 20 U.S.C. 1080, 1082, 1085, 1094) [57 FR 60323, Dec. 18, 1992, as amended at 59 FR 22457, Apr. 29, 1994]
Title 34: Education
PART 682—FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM
Subpart G—Limitation, Suspension, or Termination of Lender or Third-party Servicer Eligibility and Disqualification of Lenders and Schools
§ 682.704 Emergency action.
