An institution is liable for the title IV, HEA program funds disbursed to a student whose eligibility is determined under this subpart only if—

1. (a) The institution used a test that was not administered independently, in accordance with § 668.151(b);
2. (b) The institution or an employee of the institution compromised the testing process in any way; or

3. (c) The institution is unable to document that the student received a passing score on an approved test.

   (Authority: 20 U.S.C. 1091(d))