A person may not knowingly make or cause to be made any material misstatement of fact, including an understatement or overstatement of financial condition, in a statement or report in or regarding an application for a loan or transfer or affecting a loan or transfer already made. A person who violates any provision of this regulation is: Guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 2 years, or both; and Subject to immediate: Cancellation and acceleration of the loan; or Revocation of the transfer and the requirement to reimburse the transfer.