[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR224.10]

[Page 920]
 
                       TITLE 22--FOREIGN RELATIONS
 
            CHAPTER II--AGENCY FOR INTERNATIONAL DEVELOPMENT
 
PART 224--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT--Table of Contents
 
Sec. 224.10  Default upon failure to file an answer.

    (a) If the defendant does not file an answer within the time 
prescribed in Sec. 224.9(a), the reviewing official may refer the 
complaint to the ALJ.
    (b) Upon the referral of the complaint, the ALJ shall promptly serve 
on defendant in the manner prescribed in Sec. 224.8, a notice that an 
initial decision will be issued under this section.
    (c) The ALJ shall assume the facts alleged in the complaint to be 
true, and, if such facts establish liability under Sec. 224.3, the ALJ 
shall issue an initial decision imposing the maximum amount of penalties 
and assessments allowed under the statute.
    (d) Except as otherwise provided in this section, by failing to file 
a timely answer, the defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the initial decision shall become final and binding upon the parties 
30 days after it is issued.
    (e) If, before such an initial decision becomes final, the defendant 
files a motion with the ALJ seeking to reopen on the grounds that 
extraordinary circumstances prevented the defendant from filing an 
answer, the initial decision shall be stayed pending the ALJ's decision 
on the motion.
    (f) If, on such motion, the defendant can demonstrate extraordinary 
circumstances excusing the failure to file a timely answer the ALJ shall 
withdraw the initial decision in paragraph (c) of this section, if such 
a decision has been issued, and shall grant the defendant an opportunity 
to answer the complaint.
    (g) A decision of the ALJ denying defendant's motion under paragraph 
(e) of this section is not subject to reconsideration under Sec. 224.38.
    (h) The defendant may appeal to the A.I.D. Administrator the 
decision denying a motion to reopen by filing a notice of appeal with 
the A.I.D. Administrator within 15 days after the ALJ denies the motion. 
The timely filing of a notice of appeal shall stay the initial decision 
until the A.I.D. Administrator decides the issue.
    (i) If the defendant files a timely notice of appeal with the A.I.D. 
Administrator, the ALJ shall forward the record of the proceeding to the 
A.I.D. Administrator.
    (j) The A.I.D. Administrator shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's failure to file a 
timely answer based solely on the record before the ALJ.
    (k) If the A.I.D. Administrator decides that extraordinary 
circumstances excused the defendant's failure to file a timely answer, 
the A.I.D. Administrator shall remand the case to the ALJ with 
instructions to grant the defendant an opportunity to answer.
    (l) If the A.I.D. Administrator decides that the defendant's failure 
to file a timely answer is not excused, the A.I.D. Administrator shall 
reinstate the initial decision of the ALJ, which shall become final and 
binding upon the parties 30 days after the A.I.D. Administrator issues 
such decision.

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