based on favorable earnings, and (vii) restrictions on disbursements, dividends, debts, salaries, acquisition and disposition of assets, liens, expenditures and liabilities.

(9) Default provisions. In providing financial assistance, the Secretary may require in any loans or evidences of indebtedness such provisions regarding default and acceleration upon default as he deems appropriate.

(10) Termination of assistance and recovery of funds in the event of revocation. Financial assistance provided by the Secretary to implement a certified adjustment proposal shall be subject to his right to terminate such assistance and to recover any funds disbursed thereunder, in the event of revocation of the certification pursuant to § 500.34(b): Provided, That recovery of funds disbursed will only be sought in cases where such recovery is deemed appropriate by the Secretary and where revocation was made pursuant to § 500.34 (b) (iii) or (iv).

(11) Other provisions. In providing financial assistance, the Secretary may require such other terms and conditions relevant to commercial agreements as he deems appropriate, including opinions of counsel and accountants, and affirmative and negative covenants.

(d) Administration of financial assistance. (1) The Secretary will exercise all such powers and take all such action as may be necessary or incidental to the administration of financial assistance under this part, including, but not limited to the following:

(1) Assignment or sale at public or private sale, or other disposition of, any evidence of debt, contract, claim, personal property or security assigned to or held by him in connection with such financial assistance, upon such terms and conditions and for such consideration as he shall determine to be reasonable;

(ii) Collection, compromise and deficiency judgments with respect to all obligations assigned to or held by him in connection with such financial assistance until such time as such obligations may be referred to the Attorney General for suit or collection;

(iii) Renovation, improvement, modernization, completion, protection by insurance, rental, sale or other dealing with any real or personal property conveyed to or otherwise acquired by him in connection with such financial assist

ance, upon such terms and conditions and for such consideration as he shall determine to be reasonable; and

(iv) Acquisition, holding, transfer, release or conveyance of any real or personal property, or any interest therein, whenever deemed necessary or appropriate, and execution of all legal documents for such purposes.

(2) Any mortgage acquired as security under paragraph (c) (8) shall be recorded under applicable State law.

(3) A financial institution that has made a loan in connection with which there has been a guarantee, or with respect to which there is a deferred participation agreement, shall hold the note and all security and other agreements obtained by it in connection with such loan, and shall receive all payments of principal and interest on such loan until such time as the Secretary may purchase the guaranteed or deferred participation share thereof: Provided, That except as authorized in writing by the Secretary, such financial institution shall not (i) make or consent to any alteration in the terms of the note or related agreements, (ii) make or consent to any release, substitution or exchange of collateral, (iii) accelerate the maturity of the note, (iv) sell, assign or transfer the note or related agreements, (v) sue upon the note or related agreements, (vi) waive or agree to waive any claim against the borrower or any guarantor, standby creditor or other obligor in connection with the loan, (vii) charge or receive any bonus, fee, commission or expense in any form, directly or indirectly, in connection with the loan, except charges or expenses incurred or earned for services rendered, or (viii) increase the amount due on a prior lien. Such financial institution shall assign and deliver to the Secretary the note and related agreements with respect to such portion of the loan as may be purchased pursuant to the guarantee or deferred participation agreement.

years preceding the year of the loss, rather than the normal 3-year carryback provided in the Internal Revenue Code of 1954, as amended. Tax refunds received by a firm pursuant to a tax assistance certification must be used by such firm in accord with the terms of its certified adjustment proposal.

(b) Application. An application for tax assistance filed pursuant to § 500.30 shall satisfy the application requirement of paragraph (a) of this section, but the effective date of filing for purposes of section 317(a) of the Act shall be the date on which the firm's adjustment proposal is certified by the Secretary pursuant to section 500.32 of this part.

(c) Certification. Following receipt from the firm of the written notice required by § 500.32 (e), eligibility for tax assistance will be certified by the Secretary if he determines that (1) the net operating loss alleged to have been sustained by the firm in a taxable year that closed not more than 24 months prior to the date of its application under this section arose predominantly out of the carrying on of a trade or business which was seriously injured during such year by the increased imports found by the Tariff Commission to have resulted from concessions granted under trade agreements, and (2) tax assistance under this section will materially contribute to the economic adjustment of the firm. A certification under this section shall not constitute a determination of the existence or amount of any net operating loss for purposes of section 172 of the Internal Revenue Code of 1954, as amended.

(d) Notice to Internal Revenue Service. At such time and in such manner as may be prescribed pursuant to section 172(b) (3) (A) (1) of the Internal Revenue Code of 1954, as amended, and regulations issued thereunder, the firm or other taxpayers involved must file with the Secretary of the Treasury or his delegate a notice that it or they have applied for tax assistance and, if such assistance is approved, a copy of the certification of eligibility therefor, issued pursuant to paragraph (c) of this section.

(e) Revocation. A tax assistance certification may be revoked by the Secretary at any time upon a finding that the tax refunds made to the firm pursuant to such certification are not being used in accord with the terms of the firm's certified adjustment proposal.

Subpart E-Records and Reports § 500.50 Records.

(a) Each firm receiving adjustment assistance under this part shall make or cause to be made by any person under the control or direction of such firm, original or facsimile records, receipts or documents with respect to all transactions relating to the receipt, disbursement and utilization of proceeds or other forms of such assistance as are received that will fully disclose their amount and disposition. Such records, receipts or documents shall be in such form and detail as will facilitate effective audit.

(b) In any undertaking to provide adjustment assistance, the Secretary may require the firm to keep, or cause to be kept, such additional records, receipts or documents as he may deem appropriate.

(c) Any records, receipts or documents required to be kept pursuant to this section shall be retained for a period of at least 3 years following completion of the adjustment assistance proposal certified by the Secretary pursuant to Subpart C of this part or until any loans called for therein have been repaid, whichever date is later.

(d) The records, receipts and documents referred to in this section shall include, but not by way of limitation, source materials, journals or other books oi original entry, ledgers, financial statements, work papers regardless of by whom prepared, and minute books. § 500.51 Reports.

Each firm receiving adjustment assistance under this part, and any person under the control or direction of such firm, shall furnish, in the form of notarized reports or otherwise as required by the Secretary, complete information relative to any matter involving or pertinent to the adjustment assistance proposal certified pursuant to Subpart C of this part, and information otherwise reasonably related to such proposal or the purposes of the Act or of this part. The Secretary may require that such reports include the production of any books of account, contracts, letters, or other papers relevant to adjustment assistance received by the firm or transactions related thereto in the custody or control of the firm or person required to make such reports.

(a) For the convenience and guidance of interested persons, the following printed forms are available for use in connection with submissions under this part in connection with adjustment assistance to firms:

(1) OTA-1, Application for Certification of Eligibility To Apply for Adjustment Assistance (under section 302(b) (1) of the Act).

(2) OTA-2, Certificate of Eligibility To Apply for Adjustment Assistance.

(3) OTA-3, Application for Adjustment Assistance.

(4) OTA-4, Adjustment Proposal.

(5) OTA-5, Certification of Adjustment Proposal.

(6) OTA-6, Certification of Eligibility for Tax Assistance.

(b) Copies of all necessary forms, and instructions for their preparation and filing, may be obtained upon request from the Office of Trade Adjustment Assistance, Department of Commerce, Washington, D.C. 20230, or from any Field Office of the Department.

(a) Applications. Forms and related material, including communications, with respect thereto, in connection with (1) applications for certification of eligibility to apply for adjustment assistance, (2) applications for adjustment assistance and (3) adjustment proposals under this part, should be submitted, in triplicate, to the Director, Office of Trade Adjustment Assistance, Department of Commerce, Washington, D.C. 20230.

(b) Petitions for reconsideration and appeals. See § 500.62 (b) (2) and (c) (4), respectively.

(c) Other communications. In order to expedite attention to inquiries or other correspondence concerning matters relevant to or arising in connection with the provisions of this part, persons initiating such communications are urged to direct them in the first instance to OTAA.

(d) Due date. (1) Applications for certification of eligibility to apply for adjustment assistance under section 302 (b) (1) of the Act, and applications for adjustment assistance under section 311 of the Act are subject to statutory filing deadlines. The Secretary may, in appropriate circumstances, condition accept

ance of other submissions upon timely filing on or before a specified date. (2) Except as provided in §§ 500.43 (b) and 500.62 (a) (3), submissions received by mail are deemed filed on the date postmarked on the envelope in which they are mailed. Submissions delivered directly are deemed filed when received.

(e) Extensions of time. With respect to any submission, other than a petition for reconsideration or an appeal under § 500.62, concerning which a date has been established for receipt by the Secretary or his delegate and submission on or before such date is a condition precedent to its acceptance as timely filed, application for extension of time may be made to OTAA. Such application must be received by OTAA prior to the time such submission is due, and must contain a statement of reason for inability to comply with the required filing date. An extension of time will be given for good cause shown.

§ 500.62 Reconsideration and appeals.

This section sets forth the procedures applicable to: Petitions for reconsideration of administrative actions and appeals to the Secretary from certain delegated administrative actions and from decisions on petitions for reconsideration.

(a) General provisions. (1) The term "administrative action" means with respect to any person, (i) a decision with respect to certification of eligibility to apply for adjustment assistance, or (ii) a decision upon an application for adjustment assistance, or (iii) any action taken specifically with respect to such person pursuant to the exercise of a discretionary power by the Secretary or his delegate in accordance with any provision of this part. The term “administrative action" does not include an opinion or ruling interpreting these regulations, or a decision upon a petition for reconsideration or upon an appeal.

(2) Notice of an administrative action or of a decision upon a petition for reconsideration or upon an appeal shall be deemed to have been given on the date when mailed or delivered directly to the petitioner or appellant: Provided, That notice of an administrative action taken prior to the effective date of this section shall be deemed to have been given on such effective date.

(3) A petition for reconsideration or an appeal shall be deemed filed on the date received by the addressee.

(4) Any person may withdraw a petition for reconsideration or an appeal at any time prior to the date a decision is rendered thereon.

(b) Petition for reconsideration. Any person may petition the official who has taken an administrative action under this part with respect to such person for reconsideration of such action unless such person has previously appealed the same or a related administrative action to the Secretary and such appeal is then pending or a decision has been rendered thereon. The filing of a petition for reconsideration shall not suspend or stay the effect of the administrative action of which reconsideration is sought unless the Secretary, in his discretion, so orders.

(1) Form of petitions. An original and five copies of the petition for reconsideration and all supporting documents shall be submitted. The petition shall enclose a copy of the administrative action of which reconsideration is asked, and shall state the grounds upon which the petition is based and the relief requested. All facts and argument in support of the petition shall be separately identified and set forth in detail.

(2) Filing. A petition for reconsideration of an administrative action shall be filed not later than 20 days after notice of the administrative action is given to the petitioner. It shall be addressed to the official who took the action of which reconsideration is sought, in care of the U.S. Department of Commerce, Washington, D.C. 20230. If a petition is withdrawn, the time which has elapsed since notice of the administrative action was given to the petitioner shall not be counted as part of the time allowed for appeal. Requests for extension of time within which to file petitions for reconsideration may be granted in the discretion of the official who took the action of which reconsideration is to be sought.

(3) Decisions. The official who took the action of which reconsideration is sought may dismiss the petition or may grant or deny the petition in whole or in part, or may modify all or part of the administrative action under reconsideration. Written notice of the decision shall be given to the petitioner.

(c) Appeals. Any person may appeal in writing to the Secretary with respect to a decision by another official

of the Department on the ground that the administrative action (including a decision on a petition for reconsideration) with respect to such person was based on legal or factual error or was arbitrary. An appeal may not be filed if such person has previously filed a petition for reconsideration respecting the same or a related administrative action and no decision has been rendered thereon and the petition has not been withdrawn. The filing of an appeal shall not suspend or stay the effect of the administrative action or decision on the petition for reconsideration under appeal unless the Secretary, in his discretion, so orders.

(1) Form of appeals. An original and three copies of the appeal and all supporting documents shall be submitted. If the submission of three copies of all accompanying documents or exhibits would place an undue burden on the petitioner, waiver of this rule may be requested at the time the appeal is filed. The appeal shall enclose a copy of the administrative action or decision on the petition for reconsideration from which appeal is made, and shall state the particulars upon which the appeal is based and the relief requested. All facts and arguments in support of the appeal shall be separately identified and set forth in detail. The appellant may request the Director, in writing, to transmit to the Secretary the documentation originally submitted to OTAA.

(2) Filing. Appeals shall be filed with the Secretary not later than 30 days after notice of the administrative action or decision on the petition for reconsideration has been given to the appellant. Requests for extensions of time within which to file appeals may be granted in the discretion of the Secretary. Appeals shall be addressed to the Secretary, U.S. Department of Commerce, Washington, D.C. 20230.

(3) Oral presentations. The Secretary may, in his discretion, request an appellant to make an oral presentation at a time and place designated.

(4) Decisions. The Secretary may dismiss, grant or deny the appeal in whole or in part or modify all or part of the administrative action or decision on the petition for reconsideration under appeal. Written notice of the Secretary's decision shall be furnished to the appellant and shall constitute final Departmental action.

§ 500.63 Public access to information.

Completed Forms OTA-1, OTA-3, OTA-4, or any other completed forms filed with OTAA, applications and requests from applicants, petitions for reconsideration, appeals, materials submitted therewith, and decisions thereon are considered to be matters covered by 5 U.S.C. 552(b). Other information, records, and material in the possession of OTAA, if required by 5 U.S.C. 552 to be made available to the public, shall be available in accordance with the provisions of Part 4, Subtitle A of this title. Subpart G-Investigation and Audit; Penalties

§ 500.70

Investigation and audit.

(a) The Secretary may, through any person or agency, investigate any matter relevant to or any violation of the provisions of this part, regardless of whether any report has been required or filed in connection therewith.

(b) The Secretary, through any person or agency, shall have access for the purpose of audit and examination to any records, receipts and documents (as defined in § 500.50 (d)) in the possession of a firm that is receiving or has received adjustment assistance under this part, or in the possession of any other person or firm, pertaining to or relevant to such adjustment assistance.

§ 500.71

Penalties.

(a) Attention is directed to 19 U.S.C. section 1919, which provides in connection with adjustment assistance to firms that:

Whoever makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of Comthe Secretary of

merce * *, or for the purpose of obtainof or anything ing property, money, value * shall be fined not more than $5,000 or imprisoned for not more than 2 years, or both.

(b) Attention is also directed to 18 U.S.C. section 1001, which provides that:

Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals, or covers up by any trick, scheme or device a material fact, or makes any false, fictitious, or fraudulent statements, or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than 5 years or both.

(c) Failure by a firm to maintain or cause to be maintained records or make reports required under Subpart E of this Part shall be grounds for suspension or termination of adjustment assistance. This provision shall constitute an integral part of any certification by the Secretary of an adjustment proposal, whether or not expressly incorporated therein.

§ 500.72 Effect on lenders.

Any person who in good faith lends money or extends credit to a firm that is receiving or has received adjustment assistance under this part and who does not have actual knowledge, when such loan is made or credit extended (or when a commitment is given to make the loan or extend the credit), that the use of the proceeds thereof, the repayment thereof or any other transaction in connection therewith will involve or constitute a violation by the firm of any provision of this part or of any license, ruling, regulation, order, direction, or instruction issued by or pursuant to the authorization or direction of the Secretary pursuant to this part or otherwise under § 500.71, may receive payment thereof (together with all interest and other fees and charges) and may otherwise participate in any other transaction in connection therewith, and such person's rights against the firm in connection with such loan or extension of credit shall not in any way be affected or impaired by reasons of the provisions of this part.