PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2119 (2) in subparagraph (D)— (A) by striking "or any regulation prescribed under this title," and inserting in lieu thereof a comma and "any regulation prescribed under this title, or any applicable special arrangement, agreement, or limitation,'; and (B) by striking out the period at the end thereof and inserting in lieu thereof a semicolon; and (3) by adding at the end thereof the following new subparagraphs: "(E) an emergency action against an institution, under Mail, which the Secretary shall, effective on the date on which a notice and statement of the basis of the action is mailed to the institution (by registered mail, return receipt re- quested), withhold funds from the institution or its students and withdraw the institution's authority to obligate funds under any program under this title, if the Secretary— "(i) receives information, determined by the Sec- retary to be reliable, that the institution is violating any provision of this title, any regulation prescribed under this title, or any applicable special arrangement, agreement, or limitation, "(ii) determines that immediate action is necessary to prevent misuse of Federal funds, and "(iii) determines that the likelihood of loss out- weighs the importance of the procedures prescribed under subparagraph (D) for limitation, suspension, or termination, except that an emergency action shall not exceed 30 days unless limitation, suspension, or termination proceedings are initiated by the Secretary against the institution within that period of time, and except that the Secretary shall provide the institution an opportunity to show cause, if it so requests, that the emergency action is unwarranted; (F) the limitation, suspension, or termination of the Contracts, eligibility of an individual or an organization to contract with any institution to administer any aspect of an institu- tion's student assistance program under this title, or the imposition of a civil penalty under paragraph (2)(B), when- ever the Secretary has determined, after reasonable notice and opportunity for a hearing on the record, that such organization, acting on behalf of an institution, has violated or failed to carry out any provision of this title, any regula- tion prescribed under this title, or any applicable special arrangement, sigreement, or limitation, except that no period of suspension under this subparagraph shall exceed 60 days unless the organization and the Secretary agree to an extension, or unless limitation or termination proceed- ings are initiated by the Secretary against the individual or organization within that period of time; and "(G) an emergency action against an individual or an Contracts. organization that has contracted with an institution to Mail, administer any aspect of the institution's student assistance program under this title, under which the Secretary shall, effective on the date on which a notice and statement of the basis of the action is mailed to such individual or organiza- tion (by registered mail, return receipt requested), withhold funds from the individual or organization and withdraw the
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