§ 225.21. What are some examples of impermissible uses of reserve account funds?
125 words·~1 min read·
/us/cfr/t34/s§ 225.21·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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. \[70 FR 15003, Mar. 24, 2005, as amended at 84 FR 25998, June 5, 2019\]
Connections8 cite this
Citation graph
cites case law
§ 225.21
What are some examples of impermissible uses of reserve account funds?
Fed. Reg.×8
Cites 0Cited by 8 across 1 source