§6106. Property and equipment restrictions.

(a) Prohibition.--Recipients of grants under this chapter may not dispose of or convert property or equipment acquired with a grant for purposes other than the purposes approved in the project application without the prior written approval of the agency awarding the grant.

(b) Remedy.--If a violation of subsection (a) occurs, the agency may:

(1) Require the recipient to refund all grants related to the project, including 10% annual interest compounded four times annually, from the date the original grant was received until the grant is repaid.

(2) Require acquisition by the recipient of equivalent replacement property, as determined by the agency.

(3) Take possession of the property or equipment funded by the agency.