Approved charters shall be subject to revocation or probation, after the exercise of due diligence and good faith, only for the following reasons: (1) The school, or its representatives, has committed a material fraud on the approving authority or misappropriated federal, state or local funds; or (2) The school fails to comply with its charter or to satisfy, in its operation of the school, the criteria set forth in § 512 of this title.
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