7 CFR §1980.1208

1. (a)The Awarding Agency will inform applicants seeking consideration of funding under this part of the agency's disposition of the applicant's request;
2. (b)Except as provided in § 1980.1206(e), awards made under this part shall be managed and serviced by the Awarding Agency;
3. (c)Except as provided in § 1980.1206(e), the Agency shall be responsible for oversight and compliance of projects utilizing authority under this part;
4. (d)Requirements for providing retail broadband service or wholesale broadband service under §§ 1980.1206, 1980.1207, and this section shall be made part of the applicable loan or grant agreement between the recipient and the Awarding Agency, or, with respect to guarantees and intermediaries, between the program participants and the recipients;
5. (e)The applicable agreement must provide that non-compliance with this part or use of funds for retail broadband service or wholesale broadband service without having received agency authority to do so as required in this part, shall:
   1. (1)Be an automatic event of default under the applicable agreement; and
   2. (2)Require that the associated loan or grant funds used in violation of this part be disallowed or returned immediately to the awarding agency or to the program participant for eligible relending.