Code of Federal Regulations Title 2. Grants and Agreements § 2.3485.315 May I use the services of an excluded person as a principal under a covered transaction?

(a) You as a participant may continue to use the services of an excluded person as a principal under a covered transaction if you were using the services of that person in the transaction before the person was excluded. However, you are not required to continue using that person's services as a principal. You should make a decision about whether to discontinue that person's services only after a thorough review to ensure that the action is proper and appropriate.

(b) You may not begin to use the services of an excluded person as a principal under a covered transaction unless another Federal agency responsible for the transaction grants an exception under § 180.135 of this title or, if ED took the action, an ED deciding official grants an exception under § 3485.137.

(c) If you are a title IV, HEA participant—

(Authority:  E.O. 12549 (3 CFR 1986 Comp., p. 189);  E.O. 12689 (3 CFR 1989 Comp., p. 235);  sec. 2455, Pub.L. 103–355, 108 Stat. 3327 (31 U.S.C. 6101 note);  20 U.S.C. 1082, 1094, 1221e–3, and 3474)