Grounds for debarment.

§ 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 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) and (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.