Section 375.31 - What could happen if someone does not fully comply with the redemption operation rules or fails to deliver securities?(a)General. If a person or entity fails to comply with any of the redemption operation rules in this part, we will consider the circumstances and take what we deem to be appropriate action. This could include barring the person or entity from participating in future redemption operations under this part and future auctions under 31 CFR part 356 . We also may refer the matter to an appropriate regulatory agency.(b)Liquidated damages. If you fail to deliver securities on time, we may require you to pay liquidated damages of up to 1% of your projected settlement amount.