---
kind: "section"
citation: "25 C.F.R. § 276.3"
title: "25"
number: "276.3"
heading: "Cash depositories."
url: "https://uscodex.org/cfr/25/276.3"
---

# §276.3. Cash depositories.

- (a) Except for situations described in paragraphs [(b)](#b) and [(c)](#c) of this section, the Bureau will not:
  - (1) **Require physical segregation of cash depositories for Bureau grant funds provided to a grantee.**
  - (2) Establish any eligibility requirements for cash depositories in which Bureau grant funds are deposited by grantees or their subgrantees.
- (b) A separate bank account shall be used when payments under letter of credit are made on a “check-paid” basis in accordance with agreements entered into by a grantee, the Bureau, and the banking institutions involved. A check-paid basis letter of credit is one under which funds are not drawn from the Treasury until the grantee's checks have been presented to its bank for payment.
- (c) Consistent with the national goal of expanding the opportunities for minority business enterprises, grantees are encouraged to use minority banks.

## Notes

### Authority

Authority: 34 CFR 256; Sec. 104, Pub. L. 93-638, 88 Stat. 2203, 2207 (25 U.S.C. 450h).

### Source

Source: 40 FR 51316, Nov. 4, 1975, unless otherwise noted.