34 C.F.R. § 225.21 What are some examples of impermissible uses of reserve account funds?
Title 34 - Education
(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. (Authority: 20 U.S.C. 7223d)
Title 34: Education
PART 225—CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM
Subpart C—What Conditions Must Be Met by a Grantee?
§ 225.21 What are some examples of impermissible uses of reserve account funds?
