Iowa Admin. Code r. 567-44.13
Failure of a project to conform to approved plans and specifications or failure of a loan recipient to comply with the requirements of 567-Chapter 40 through 567-Chapter 44 pertaining to drinking water supply systems constitutes grounds for the withholding of loan disbursements. The loan recipient is then responsible for ensuring that the identified problem either in the plans and specifications or in the other relevant portion of the project is rectified such that disbursements may be resumed. Once an agreement for correcting the conditions which led to the withholding of funds is reached between the department and the loan recipient, the retained funds shall be released according to the provisions of the agreement.
Iowa Admin. Code r. 567-44.13