R 390.1485 Notice of limitation, suspension, or termination proceeding.

Rule 85. (1) The designated official shall begin a limitation, suspension, or termination proceeding by sending a lender or participating school a notice. (2) The notice shall include all of the following: (a) A statement of the designated official's intent to suspend the lender's or the participating school's eligibility for a period of not more than 60 days or limit or terminate the lender's or participating school's eligibility. (b) A description of the consequences of a limitation, suspension, or termination. (c) Identification of the alleged violations on which the proposed limitation, suspension, or termination is based. (d) A statement of the limits which may be imposed, in the case of a limitation proceeding. (e) A statement of the proposed effective date of the limitation, suspension, or termination, which shall not be less than 20 days after the notice is mailed. (f) Information to the lender or the participating school that the limitation, suspension, or termination shall not take effect on the proposed effective date if the designated official receives, not less than 5 days before that date, a request for a hearing or written material showing why the limitation, suspension, or termination should not take effect. (g) A request that the lender or participating school correct any alleged violation voluntarily.