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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 34 - Education |
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Subtitle B - Regulations of the Offices of the Department of Education |
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Chapter II - Office of Elementary and Secondary Education, Department of Education |
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Part 225 - Credit Enhancement for Charter School Facilities Program |
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Subpart C - What Conditions Must Be Met by a Grantee? |
§ 225.21 - What are some examples of impermissible uses of reserve account funds?
Latest version.
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§ 225.21 What are some examples of impermissible uses of reserve account funds?
(a) Grantees must not use reserve account funds to -
(1) Directly pay for a charter school's construction, renovation, repair, or acquisition; or
(2) Provide a down payment on facilities in order to secure loans for charter schools. A grantee may, however, use funds to guarantee a loan for the portion of the loan that would otherwise have to be funded with a down payment.
(b) In the event of a default of payment to lenders or contractors by a charter school whose loan or lease is guaranteed by reserve account funds, a grantee may use these funds to cover defaulted payments that are referenced under paragraph (a)(1) of this section.
[70 FR 15003, Mar. 24, 2005, as amended at 84 FR 25998, June 5, 2019]