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.