(a) An area agency may surrender area agency status at any time.

(b) The office withdraws an area agency's designation as an area agency when it finds, after reasonable notice and opportunity for a hearing under this Chapter, that:

(c) When the office withdraws an area agency's designation, it notifies the United States Administration on Aging in writing, provides a plan for the continuity of services in the area to the extent that matching funds required under this Chapter are available, and designates a new area agency in a timely manner. When necessary to assure continuity of services, the office may perform the responsibilities of the area agency or assign these responsibilities to another agency in the area for up to 180 days after its final decision to withdraw the area agency's designation. Upon demonstration of a need for continued office administration of OAA programs in the area, the office may continue to perform area agency functions if permission to do so is granted by the United States Commissioner on Aging.

(d) Upon surrender or withdrawal of area agency status, CSE and EISEP funds may not be awarded to or expended by that area agency. However, upon the designation of a new area agency, the former area agency may expend CSE or EISEP funds if it becomes a subcontractor of the newly designated area agency.