1606.6—Preliminary determination.

(a) When the Corporation has made a preliminary determination that a recipient's grant or contract should be terminated and/or that a recipient should be debarred, the Corporation employee who has been designated by the President as the person to bring such actions (hereinafter referred to as the “designated employee”) shall issue a written notice to the recipient and the Chairperson of the recipient's governing body. The notice shall:
(1) State the grounds for the proposed action;
(2) Identify, with reasonable specificity, any facts or documents relied upon as justification for the proposed action;
(3) Inform the recipient of the proposed sanctions;
(4) Advise the recipient of its right to request:
(i) An informal conference under § 1606.7; and
(ii) a hearing under § 1606.8; and
(5) Inform the recipient of its right to receive interim funding pursuant to § 1606.13.
(b) If the recipient does not request an informal conference or a hearing within the time prescribed in § 1606.7(a) or § 1606.8(a), the preliminary determination shall become final.