The Secretary's representatives shall maintain a list of those
grantees who are considered to be responsible for instances of failure
to comply with the obligation of the grantees specified in section 5(i)
(1) and (2) and section 7(g) (1) and (2) of the Act, which are
considered to have been willful or of such nature as to cast doubt on
the reliability of formal assurances subsequently given and there shall
be maintained a similar list where adjustment of the violations
satisfactory to the Secretary was not properly made. Assurances from
persons or organizations placed on either such list or any organization
in which they have a substantial interest shall be considered inadequate
for purposes of receiving further grants for a period not to exceed
three (3) years from the date of notification by the Secretary that they
have been placed on the lists unless, by appropriate application to the
Secretary, they demonstrate a current responsibility to comply with
section 5(i) (1) and (2) and section 7(g) (1) and (2) of the Act, and
demonstrate that correction of the violations has been made.
