1. (a) If the Secretary terminates or suspends an institution's eligibility to participate in the FWS program, the action also applies to the institution's job location and development programs.

2. (b) The Secretary pays an institution's financial obligations incurred and allowable before the termination but not incurred—

   1. (1) During a suspension; or
   2. (2) In anticipation of a suspension.

3. (c) However, the institution must cancel as many outstanding obligations as possible.

   (Authority: 42 U.S.C. 2756a)

[52 FR 45770, Dec. 1, 1987, as amended at 59 FR 61419, Nov. 30, 1994]