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Code of Federal Regulations Title 34. Education § 34.225.21 What are some examples of impermissible uses of reserve account funds?

Current as of January 02, 2025 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 34. Education § 34.225.21 What are some examples of impermissible uses of reserve account funds? - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-34-education/cfr-sect-34-225-21/

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