§ 1942.374 - Grant closing and delivery of funds.

(a) Grants will be closed in accordance with instructions received from the Office of the General Counsel (OGC). FmHA or its successor agency under Public Law 103-354 policy is not to disburse grant funds from the Treasury until they are actually needed by the applicant. Borrower funds will be disbursed before the disbursal of any FmHA or its successor agency under Public Law 103-354 grant funds.

(1) FmHA or its successor agency under Public Law 103-354 or other loan funds will be disbursed before the disbursal of any FmHA or its successor agency under Public Law 103-354 grant funds except when:

(i) Interim financing of the total estimated amount of loan funds needed during construction is arranged, and

(ii) All interim funds have been disbursed, and

(iii) FmHA or its successor agency under Public Law 103-354 grant funds are needed before the FmHA or its successor agency under Public Law 103-354 or other loan can be closed.

(2) If grant funds are available from other agencies and are transferred to the Finance Office for disbursement by FmHA or its successor agency under Public Law 103-354, these grant funds shall be disbursed in accordance with the agreement governing such agencies’ participation in the project.

(3) Any grant funds remaining will be handled in accordance with § 1942.17(p)(6) of subpart A of part 1942 of this chapter.

(b) FmHA or its successor agency under Public Law 103-354 grant funds will be disbursed using multiple advances in accordance with § 1942.17(p)(2) of subpart A of part 1942 of this chapter.

(c) Payment for construction will be made in accordance with § 1942.17(p)(5) of subpart A of part 1942 of this chapter.

(d) Form FmHA or its successor agency under Public Law 103-354 1942-31 will be completed and executed in accordance with the requirements of grant approval and closing instructions. District Directors or State Directors are authorized to sign the grant agreement on behalf of FmHA or its successor agency under Public Law 103-354. For grants that supplement FmHA or its successor agency under Public Law 103-354 loan funds, the grant should be closed simultaneously with the closing of the loan. However, when grant funds will be disbursed before loan closing, as provided in paragraph (a)(1) of this section, the grant will be closed not later than the delivery date of the first advance of grant funds. The grant will be considered closed when Form FmHA or its successor agency under Public Law 103-354 1942-31 has been properly executed. Incorporated as a part of this subpart is Form FmHA or its successor agency under Public Law 103-354 1942-31, which appears as exhibit C to this subpart.