22.—(1) If the other party to the contract makes a false statement under paragraph (4) of regulation 20 or paragraph (3) of regulation 21 he shall be guilty of an offence.
(2) If the other party to the contract applies monies released to him on the basis of a statement made by him under regulation 21(3)(a) or (c) for a purpose other than that mentioned in the statement he shall be guilty of an offence.
(3) If the other party to the contract is guilty of an offence under paragraph (1) or (2) of this regulation shall be liable—
(a)on summary conviction to a fine not exceeding level 5 on the standard scale; and
(b)on conviction on indictment, to a fine.