§ 1506.15 - Rescission of contracts.

(a) Circumstances permitting rescission. The RTC may rescind any contract in its entirety or with respect to a particular assignment if:

(1) There is a failure to disclose a material fact to the RTC;

(2) The contractor would be prohibited from contracting with the RTC by § 1506.5(a);

(3) Any person or related entity has been subject to a final enforcement action by any federal bank regulatory agency;

(4) There is any material change in the representations or certifications provided to the RTC under § 1506.4;

(5) There arises a personal or organizational conflict of interest not waived by the Contractors’ Conflicts Committee or the Outside Counsels’ Conflicts Committee; or

(6) There is violation of any provision of these regulations.

(b) Contractor liability. In those situations in which the RTC determines to rescind a contract, the RTC may seek damages from the contractor or subcontractor whose actions were the basis for the rescission. Moreover, the RTC may pursue any rights and remedies provided by law whether or not it determines to rescind the contract.

(c) Permanent bar. Contractors whose contracts with the RTC have been rescinded pursuant to paragraph (a) of this section shall be deemed ineligible to enter into further contracts with the RTC. This ineligibility shall apply to related entities of the contractor, unless determined otherwise by the Contractors’ Conflicts Committee or the Outside Counsels’ Conflicts Committee. The Contractors’ Conflicts Committee or the Outside Counsels’ Conflicts Committee may determine if and when a contractor's or its related entity's ineligibility under this paragraph may be lifted, and what, if any, conditions may apply to the lifting of the ineligibility.

(d) Written submission. In the case of a rescission or bar that is based upon the ineligibility of the contractor under § 1506.5 (a)(1) through (a)(4) or, if upon another ground, the integrity of a contractor is called in question, the contractor may provide a written submission to the person or entity authorized to act for the RTC that has taken action to rescind a contract or bar a contractor. Such written submission shall receive prompt consideration, and the contractor shall be informed whether or not the RTC's decision or action will be reconsidered.