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Code · STATUTE-COMPILATIONS · Community Opportunities, Accountability, and Training and Educational Services Act of 1998 · Sec. 407

Sec. 407. RESERVE FUND

629 words·~3 min read·/statute-compilations/comps-11866/sec-407

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 407 RESERVE FUND ###
(a)Establishment A qualified entity under this title, other than a State or local government agency or a tribal government, shall establish a Reserve Fund that shall be maintained in accordance with this section. ###
(b)Amounts in Reserve Fund ####
(1)In general As soon after receipt as is practicable, a qualified entity shall deposit in the Reserve Fund established under subsection (a)— #####
(A)all funds provided to the qualified entity from any public or private source in connection with the demonstration project; and #####
(B)the proceeds from any investment made under subsection (c)(2). ####
(2)Uniform accounting regulations The Secretary shall prescribe regulations with respect to accounting for amounts in the Reserve Fund established under subsection (a). ###
(c)Use of Amounts in the Reserve Fund ####
(1)In general A qualified entity shall use the amounts in the Reserve Fund established under subsection
(a)to— #####
(A)assist participants in the demonstration project in obtaining the skills (including economic literacy, budgeting, credit, and counseling skills) and information necessary to achieve economic self-sufficiency through activities requiring qualified expenses; #####
(B)provide deposits in accordance with section 410 for individuals selected by the qualified entity to participate in the demonstration project; #####
(C)administer the demonstration project; and #####
(D)provide the research organization evaluating the demonstration project under section 414 with such information with respect to the demonstration project as may be required for the evaluation. ####
(2)Authority to invest funds #####
(A)Guidelines The Secretary shall establish guidelines for investing amounts in the Reserve Fund established under subsection
(a)in a manner that provides an appropriate balance between return, liquidity, and risk. #####
(B)Investment A qualified entity shall invest the amounts in its Reserve Fund that are not immediately needed to carry out the provisions of paragraph (1), in accordance with the guidelines established under subparagraph (A). ####
(3)Limitation on uses Not more than 15 percent of the amounts provided to a qualified entity under section 406(b) shall be used by the qualified entity for the purposes described in subparagraphs (A), (C), and
(D)of paragraph (1), of which not less than 2 percent of the amounts shall be used by the qualified entity for the purposes described in paragraph (1)(D). Of the total amount specified in this paragraph, not more than 7.5 percent shall be used for administrative functions under paragraph (1)(C), including program management, reporting requirements, recruitment and enrollment of individuals, and monitoring. The remainder of the total amount specified in this paragraph (not including the amount specified for use for the purposes described in paragraph (1)(D)) shall be used for nonadministrative functions described in paragraph (1)(A), including case management, budgeting, economic literacy, and credit counseling. If the cost of nonadministrative functions described in paragraph (1)(A) is less than 5.5 percent of the total amount specified in this paragraph, such excess funds may be used for administrative functions. If two or more qualified entities are jointly administering a project, no qualified entity shall use more than its proportional share for the purposes described in subparagraphs (A), (C), and
(D)of paragraph (1). ###
(d)Unused Federal Grant Funds Transferred to the Secretary When Project Terminates Notwithstanding subsection (c), upon the termination of any demonstration project authorized under this section, the qualified entity conducting the project shall transfer to the Secretary an amount equal to— ####
(1)the amounts in its Reserve Fund at the time of the termination; multiplied by ####
(2)a percentage equal to— #####
(A)the aggregate amount of grants made to the qualified entity under section 406(b); divided by #####
(B)the aggregate amount of all funds provided to the qualified entity from all sources to conduct the project.
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