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Nonqualifying Withdrawal
[EAS 42-213(i)]
A nonqualifying withdrawal occurs when any of the following happen:
- Noncooperation — The AU fails to expend funds or to provide verification of a withdrawal or expenditure within the required time limit, unless good cause exists for exceeding the time limit.
- Nonallowable Purpose — The AU withdraws or spends the funds for purposes or expenses other than those allowed.
- Receipt of Interest Income — The interest payment was not deposited directly into the account by the financial institution. Refer to Interest Exemption [EAS 42-213(f)] and Exception for Restricted Accounts for further information.
If one of the persons listed on the restricted account withdraws funds from the restricted account without the knowledge of the AU, the AU is still subject to a period of ineligibility.
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