§ 765.304 Unapproved disposition.
Current through Jul 29, 2026 · Read all of Part 765
(a) If a borrower disposes of personal property security without Agency approval, or misuses proceeds, the borrower must:
(1) Make restitution to the Agency within 30 days of Agency notification; or
(2) Provide disposition or use information to enable the Agency to consider post-approval within 30 days of Agency notification.
(b) Failure to cure the first unauthorized disposition in accordance with paragraph (a) of this section, or a second unauthorized disposition, whether or not cured, constitutes a non-monetary default, will be considered by the Agency when making eligibility determinations for future requests for assistance, may adversely impact such requests, and may result in civil or criminal action.
[72 FR 63309, Nov. 8, 2007, as amended at 91 FR 56757, Sept. 4, 2026]