StacksVerified U.S. regulatory reference

34 CFR §225.21

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
  1. (a)Grantees must not use reserve account funds to—
    1. (1)Directly pay for a charter school's construction, renovation, repair, or acquisition; or
    2. (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.
  2. (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.