Subpart F-Supervision and § 141.54 Programs for supervision and related services. The State agency shall establish policies or procedures for programs for the expansion or improvements of the State agency's supervisory and related services to public elementary and secondary schools in academic subjects. The policies and procedures shall set forth (a) how and to what extent the programs provide a new service or are improvements or expansions of existing services in the nature of supervision or instruction or services which effectively contribute to the supervisory services to be rendered; and (b) the scope of the agency's activities and arrangements to be undertaken in carrying out such programs. (20 U.S.C. 448) § 141.55 Expansion or improvement. An expansion or improvement of an existing program of supervisory or related services is a program which involves additional expenditures by the State agency for such services to public elementary or secondary schools in academic subjects over and above those theretofore expended for like services and does one or more of the following: (a) Provide for the employment of additional qualified personnel to render such services; (b) provide for rendering additional or improved services to local educational agencies; (c) extend the services already being rendered to more local educational agencies. Interest. Repayment. 142.44 Reports and records. AUTHORITY: Secs. 305 and 1001, Pub. L. 85-864, as amended, 72 Stat. 1590 (20 U.S.C. 445), unless otherwise noted. SOURCE: 40 FR 6343, Feb. 11, 1975, unless otherwise noted. Subpart A-Scope of Section 305 § 142.1 Purpose of loan program. The Federal Government makes loans available under the provisions of section 305 of the Act to eligible private nonprofit elementary and secondary schools for the acquisition of laboratory and other special equipment suitable for use in providing education in academic subjects as defined in § 142.2, and for minor remodeling of laboratory or other space used for that equipment. (20 U.S.C. 445) Subpart B-Definitions § 142.2 General provisions regulations. Definitions listed in § 100.1 of this chapter apply to this part except as otherwise provided in this subpart. (20 U.S.C. 445) § 142.3 Definitions. As used in this part: "Academic subjects" means the following elementary and secondary school subjects: the arts, civics, economics, english, geography, history, the humanities, industrial arts, mathematics, modern foreign languages, reading, and science. "Act" means section 305 of the National Defense Education Act of 1958, 20 U.S.C. 445. "Arts" includes, but is not limited to, music (instrumental and vocal), dance, drama, folk art, creative writing, architecture and allied fields, painting, sculp ture, photography, graphic and craft arts, industrial design, costume and fashion design, film, television, radio, tape and sound recording, and the arts related to the presentation, performance, execution and exhibition of such major art forms. "Audiovisual library" means a facility for the collection, custody, cataloging, maintenance, and distribution of audiovisual materials for education in academic subjects in elementary or secondary schools, and controlled and operated by a school or a group of schools under a school system. "Equipment" means laboratory and other special equipment as defined in this section, including materials as defined in § 100.1 of this chapter. "Humanities" includes, but is not limited to the study of the following: language, both modern and classic; linguistics; literature; history; jurisprudence; philosphy; archeology; the history, criticism, theory, and practice of the arts; and those aspects of the social sciences which have humanistic content and employ humanistic methods. "Laboratory and other special equipment" (a) The term includes: (1) Fixed or movable articles which are particularly appropriate for use in providing education in academic subjects in an elementary or secondary school and which are to be used either by teachers in connection with teaching or by students in learning in such subjects; (2) audiovisual equipment (including projectors, recorders, television cameras, television receivers, closed-circuit television distribution systems, and ancillary television projection and reception equipment to be used primarily for nonbroadcast purposes, except where broadcast takes the place of closed-circuit cable systems), to be used, either by teachers in connection with teaching or by students in connection with learning primarily in providing education in academic subjects in a private elementary or secondary school; (3) materials (as defined in S100.1 of this chapter) and devices (other than those used for printing, such as printing presses and offset printing machines) to be used for preparation of audiovisual and instructional materials for academic subjects; (4) storage equipment to be used solely for the care and protection of the items specified in paragraph (a)(1)–(3) of this definition, when used in laboratories or classrooms; (5) testgrading equipment to be used primarily in providing education in academic subjects in a private elementary or secondary school; and (6) (i) specialized equipment for audiovisual libraries serving private elementary or secondary schools when such equipment is to be used primarily in providing education in academic subjects. (ii) The term excludes such items as general-purpose furniture, school public address systems, or items for the maintenance and repair of equipment. However, the term does include equipment for maintenance, repair, and storage of materials in audiovisual libraries. "Minor remodeling" (notwithstanding the definition set forth in § 100.1 of this chapter) means (a) those minor alterations, in a previously completed building in space used or to be used as a laboratory or classroom for education in academic subjects, which are needed to make effective use of equipment in providing education in such subjects. The term also includes those minor alterations in a previously completed building which are needed to make effective use of the items referred to in paragraph (a) (5)-(6) of the definition of "Laboratory and other special equipment" in this section. (b) The term may also include the extension of utility lines, such as for water and electricity, from points beyond the confines of the space in which the minor remodeling is undertaken but within the confines of such previously completed building, to the extent needed to make effective use of equipment. The term does not include building construction, structural alterations to buildings, building maintenance, repair, or renovation. (c) Minor remodeling may be done in a building owned by or under lease to the applying school. If the building is leased, the leasehold interest shall be sufficient in the light of the cost of the remodeling to be accomplished with loan funds. "Private," as applied to a school, means a school which is established by an agency other than a State or a political' subdivision or any combination of either or both, and which is supported in whole or in part by other than public funds and is administered and controlled by other than publicly elected or appointed officials. "School" means a division of instructional organization consisting of a group. of pupils comprised of one or more grade groups, organized on a class basis as one unit with one or more teachers to give instruction of a defined type, and housed in a school plant of one or more buildings. More than one school may be housed in one school plant as when elementary and secondary schools are so housed. "State" means a State of the Union, Puerto Rico, the District of Columbia, the Canal Zone, Guam, American Samoa, the Virgin Islands and the Trust Territory of the Pacific Islands. "Textbook" means a book or workbook, or manual, which is used as the principle source of study material for a given class, or group of students, a copy of which is expected to be available for the individual use of each pupil in that class or group of students. (20 U.S.C. 403, 445) Subpart C-Applications § 142.4 Filing application. A private nonprofit elementary or secondary school, or its governing authority, desiring to borrow funds under this part shall file an application for that purpose with the Commissioner. (20 U.S.C. 445(1)) § 142.5 Content of application. Each application under this part shall include: (a) An appropriate identification of the applicant school; (b) Satisfactory evidence of the applicant's eligibility as a private nonprofit elementary or secondary school; (c) Statements of financial condition and information concerning credit of the applicant and of any proposed guarantor; (d) A request for a loan in a definite amount; (e) Proposed plan of repayment of principal with interest not to extend beyond 10 years from the date of the loan; (f) An itemized list of the equipment, including materials, which is proposed to be acquired with the loan funds and the estimated cost thereof, the list to be organized by subject area and school level (ie., elementary or secondary) at which the equipment is to be used; (g) If funds are requested for minor remodeling, a full description of the work to be done (including drawings or blueprints), the estimated cost thereof, and the necessity for such minor remodeling in order to make effective use of equipment; (h) A certification that the equipment, including materials, for providing edu cation in academic subjects is to be used primarily for providing education in academic subjects, except that storage equipment will be used solely for the care and protection of equipment, and a certification that the minor remodeling, if any, is to be performed to make more effective use of equipment in providing education in academic subjects; (i) A description showing the direct relationship of the proposed expenditures to the overall design for enriching the planned educational program and the achievement of desired curriculum goals in academic subjects; and (j) Such additional information as the Commissioner may require. (20 U.S.C. 445) § 142.6 Authorization for application. The application shall be signed by an authorized representative of the school, and shall contain satisfactory evidence of: (a) The authority of the applying entity to make the loan application; (b) The authority of the person signing the application to act as the representative of the school and to negotiate for the loan; (c) The legal identity of the corporation, association or other entity that will be the maker of the note; and (d) The designation, by title, of the officer, or officers, empowered to execute the note on behalf of that entity. (20 U.S.C. 445) Subpart D-Loan Procedures § 142.24 Review of application. The Commissioner will act upon a loan application only after a review of information contained in the application and any other pertinent information which he may possess. (20 U.S.C. 445) § 142.25 Action on approved application. (a) Execution of note. After the Commissioner approves an application for a loan, he will so notify the applicant and will require the execution of a promissory note, which will include a schedule of payments of the principal, with interest accruing on the unpaid principal of the loan to the dates of such payments. If the note is not executed by the last day of the fiscal year following the fiscal year in which the application was approved and (20 U.S.C. 445) § 142.37 Use of loan funds. All loans will be subject to the condition that the funds borrowed will be used only for the acquisition of equipment, and for the performance of minor remodeling, substantially similar to the project described in the approved application. (20 U.S.C. 445) § 142.38 Unused and unreported funds. Loan funds that are not used by the last day of the fiscal year following the fiscal year in which the application was approved for the purposes set out in § 145.37, and loan funds used but not reported as required in § 142.44, shall immediately become due and payable, with interest accrued thereon unless the Commissioner extends the period upon the written request of the applicant. This paragraph shall not apply if the total amount not used for the acquisition of equipment, and for the performance of minor remodeling, and not reported does not exceed two percent of the amount lent or $200, whichever is smaller. (20 U.S.C. 445) § 142.39 Misused funds. Loan funds that are used for purposes other than those provided for in § 142.1 shall immediately become due and payable, with interest accrued thereon. (20 U.S.C. 445) § 142.40 Disposal or unauthorized use of equipment. If during the period of the loan the applicant disposes of equipment or fails to use it primarily for the purposes authorized under the loan conditions, the regulations, or the Act, the balance of the loan shall, at the option of the Commissioner, become immediately due and payable, with interest accrued thereon. Any such unauthorized use and any such disposal shall be reported to the Commissioner. (a) Determination of interest rate. Loans will bear interest at the rate arrived at by adding one-quarter of 1 per centum per annum to the rate which the Secretary of the Treasury determines to be equal to the current average market yield on outstanding marketabie obligations of the United States with redemption periods to maturity comparable to the average maturities of those loans as computed at the end of the fiscal year next preceding the date the application for the loan is approved and by adjusting the result obtained to the nearest oneeighth of 1 per centum. (b) Effective interest rate. The interest rate in effect at the time a loan is approved will remain in effect for the life of the loan. (c) Date of loan. The date of the U.S. Treasury check paying the funds to the applicant will be the date of the loan and the date from which interest accrues. (20 U.S.C. 445(3)) agreed upon by the Commissioner and the applicant. (b) Date of maturity. A loan may be made for any period of time except that the date of maturity shall be not more than ten years after the date on which the loan is made. (c) Prepayments. Loans may be prepaid in full or in part at any time, with accrued interest to the date of payment, without penalty for prepayment. (20 U.S.C. 445 (4)) § 142.44 Reports and records. (a) Reports. Each applicant receiving a loan shall furnish a completion report upon completing the approved project, and shall furnish such progress or other reports as the Commissioner may from time to time require regarding the use of loan funds. The completion report shall be submitted by the last day of the fiscal year following the fiscal year in which the application was approved unless the Commissioner extends the period upon the written request of the applicant. (b) Records. Each applicant receiving a loan shall keep the loan in a separate bank account or maintain a separate accounting of all such funds sufficient readily to identify all transactions with the loan funds. Each applicant shall also maintain intact all records supporting the use of loan funds for three years after the loan has been repaid in full. Such records shall be made available to fiscal representatives of the Government for audit purposes. (20 U.S.C. 1232c (b) (2), (3)) AUTHORITY: The provisions of this Part 144 issued under secs. 201 to 209, 72 Stat. 158387, as amended; 20 U.S.C. 421-429. SOURCE: The provisions of this Part 144 appear at 31 F.R. 7463, May 24, 1966, unless otherwise noted. § 144.1 Policy and purposes of the National Defense Student Loan Fund Program. The National Defense Education Act of 1958, Public Law 85-864 (amended), affirmed the need to identify and educate more of the Nation's talented young men and women, and to develop programs through which the fullest development of their mental resources and technical skills may be realized. Title II of the Act initiates the National Defense Student Loan Program, under which National Defense Student Loan Funds will be established at participating institu tions of higher education throughout the United States for the purpose of making long-term, low-interest loans to qualifiled students who are in need of such financial assistance in order to pursue at least a half-time course of study at such institutions. The Program includes provisions designed to encourage additional education on the part of students with a superior academic background. The Program also includes provisions designed to attract an additional number of superior students to the teaching profession for service at the elementary and secondary school levels and at institutions of higher education. § 144.2 Definitions. (a) Act.-"Act" means the National Defense Education Act of 1958, as amended, 20 U.S.C. 421-429. The "Act," for purposes of § 144.3, means part E of title IV of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087aa1087ff. 548 (b) State. The term "State" for purposes of this part, means a State, Puerto |