An institution is liable for the title IV, HEA program funds disbursed to a student whose eligibility is determined under this subpart only if—

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(a) The institution used a test that was not administered independently, in accordance with § 668.151(b);

(b) The institution or an employee of the institution compromised the testing process in any way; or

(c) The institution is unable to document that the student received a passing score on an approved test.

(Authority: 20 U.S.C. § 1091(d))