§225.21. What are some examples of impermissible uses of reserve account funds?
34 C.F.R. § 225.21
Grantees must not use reserve account funds to—
Directly pay for a charter school's construction, renovation, repair, or acquisition; or
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.
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.
Notes, amendments, and revision history
Amendments
[70 FR 15003, Mar. 24, 2005, as amended at 84 FR 25998, June 5, 2019]
Authority
Authority: 20 U.S.C. 1221e-3, 1232, and 7221c.
Source
Source: 70 FR 15003, Mar. 24, 2005, unless otherwise noted.
Amendments
[70 FR 15003, Mar. 24, 2005, as amended at 84 FR 25998, June 5, 2019]