45 CFR § 1623.3 - Grounds for suspension.

---
identifier: "/us/cfr/t45/s1623.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 1623.3 - Grounds for suspension."
title_number: 45
title_name: "Public Welfare"
section_number: "1623.3"
section_name: "Grounds for suspension."
chapter_name: "LEGAL SERVICES CORPORATION"
part_number: "1623"
part_name: "SUSPENSION PROCEDURES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 2996e(b)(1), 2996f(a)(3), and 2996f(d); Pub. L. 105-119, Title V, Secs. 501(b), 502, and 503, 111 Stat. 2440, 2510-11; Pub. L. 104-134, Title V, Secs. 503(f) and 509(c), 110 Stat. 1321, 1321-53, 1321-58, and 1321-59."
regulatory_source: "78 FR 10098, Feb. 13, 2013, unless otherwise noted."
cfr_part: "1623"
---


# 1623.3 Grounds for suspension.

(a) Financial assistance provided to a recipient may be suspended when the Corporation determines that there has been a substantial violation by the recipient of the LSC requirements, and the Corporation has reason to believe that prompt action is necessary to:

(1) Safeguard LSC funds; or

(2) Ensure immediate corrective action necessary to bring a recipient into compliance with an applicable provision of law, or a rule, regulation, guideline or instruction issued by the Corporation, or the terms and conditions of the recipient's grant or contract with the Corporation.

(b) Financial assistance provided to a recipient may also be suspended by the Corporation pursuant to a recommendation by the Office of Inspector General when the recipient has failed to have an acceptable audit in accordance with the guidance promulgated by the Corporation's Office of Inspector General.