7 CFR § 634.29 - Violations.

---
identifier: "/us/cfr/t7/s634.29"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 634.29 - Violations."
title_number: 7
title_name: "Agriculture"
section_number: "634.29"
section_name: "Violations."
chapter_name: "NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "LONG TERM CONTRACTING"
part_number: "634"
part_name: "RURAL CLEAN WATER PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 35, Pub. L. 95-217, 91 Stat. 1579 (33 U.S.C. 1288)."
regulatory_source: "43 FR 50855, Nov. 1, 1978, unless otherwise noted."
cfr_part: "634"
---


# 634.29 Violations.

(a) *Actions causing violations.* The following actions constitute violation of a contract by a participant:

(1) Knowingly or negligently damaging or causing BMP's to become impaired.

(2) Adopting a land use or practice during the contract period which tends to defeat the purposes of the program.

(3) Failing to comply with the terms of the contract.

(4) Filing a false claim.

(5) Misusing authorizations for payment.

(b) *Contract termination as a result of violations.* (1) By signing a contract, the participant agrees to forfeit all rights to further cost-sharing payments under a contract and to refund all cost-share payments received, with interest, if the administering agency, with the concurrence of the State Conservationist, NRCS, determines that:

(i) There was a violation of the contract during the time the participant had control of the land; and

(ii) The violation was of such a nature as to warrant termination of the contract.

(2) The participant shall be obligated to refund all cost-share payments and all cost shares paid under authorizations, with interest, at the rates established by the Secretary of the Treasury pursuant to Pub. L. 92-41, 85 Stat. 97.

(c) *Payment adjustments and refunds resulting from violations.* (1) By signing a contract, the participant agrees to refund cost-share payments received under the contract or to accept payment adjustments if the administering agency determines and the State Conservationist, NRCS, concurs that:

(i) There was a violation of the contract during the time the participant had control of the land; and

(ii) The nature of the violation does not warrant termination of the contract.

(2) Payment adjustments may include decreasing the rate of cost share, or deleting from the contract a cost-share commitment, or withholding cost-share payments earned but not paid. The participant who signs the contract may be obligated to refund cost-share payments.