Sec. 2604.10. Remedies

(a) If a recipient has received DWSRF assistance for work which is not an allowable cost of a project, the recipient may be required to reimburse the DWSRF for the amount of misapplied DWSRF assistance received (reimbursed amounts may be applied to allowable project costs or to bond redemption) and until the full amount of such misapplied DWSRF assistance has been reimbursed, the corporation may apply any interest rate subsidy to such reimbursement or recoup any other benefit provided to the recipient, or reduce any future interest rate subsidy or such other benefit, or reduce any future interest rate subsidy or such other benefit for future DWSRF assistance, for purposes of reimbursing the DWSRF in addition to any other remedy permitted pursuant to this section, the PFA, or by law.

(b) If the corporation or the department determines that the project or the recipient is not in compliance with Federal or State laws or the terms of the applicable PFA, and, following written notice to the recipient, the project or recipient is not brought into compliance, the corporation may, on its own initiative or at the direction of the department:

(1) withdraw the interest rate subsidy, recoup any other benefit provided to the recipient, or reduce any future interest rate subsidy or such other benefit, or reduce any future interest rate subsidy or such other benefit for future DWSRF assistance;

(2) refuse to approve DWSRF disbursement requests; and

(3) refuse execution of subsequent PFAs until the project or recipient is brought into compliance.

(c) Nothing in this section shall be construed to limit the rights of the corporation or the department to take actions including, but not limited to, administrative enforcement actions and actions for breach of contract against a recipient that fails to carry out its obligations under this Part, the PFA, or any other applicable State or Federal law, rule or regulation.