Federal regulations · Through 2026-08-25 · Newer source version available

34 CFR 225.21: What are some examples of impermissible uses of reserve account funds?

Where this section sits in the code

Title 34—Education
Subtitle B—Regulations of the Offices of the Department of Education
CHAPTER II—OFFICE OF ELEMENTARY AND SECONDARY EDUCATION, DEPARTMENT OF EDUCATION
PART 225—CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM
Subpart C—What Conditions Must Be Met by a Grantee?

(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.

Collected 2026-08-27T02:25:40Z. Source file · JSON

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