principal 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 such a class or group of students. 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. (Sec. 17, 80 Stat. 1245; 20 U.S.C. 443, 403) [30 F.R. 994, Jan. 30, 1965, as amended at 36 F.R. 2869, Feb. 11, 1971; 36 F.R. 9249, May 21, 1971] Subpart C-Application (2) 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 § 142.3 Application for loan. sufficient in the light of the cost of the remodeling to be accomplished with loan funds. (1) "Nonprofit," as applied to a school, means a school owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any shareholder or individual. (m) "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. (n) "Project" means a proposal by a school, as detailed in a loan application, to strengthen instruction in the critical subjects through the acquisition of laboratory and other special equipment or minor remodeling. (o) "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. a (p) "Secondary school” means school which provides secondary education, as determined under State law, except that the term does not include any education provided beyond grade 12. (q) "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. (r) "Textbook" means a book or workbook, or manual, which is used as the (a) Filing application. A private nonprofit elementary or secondary school, or its governing authority, desiring to borrow funds under the regulations in this part shall file an application for that purpose with the Commissioner. (b) Content of application. Such an application shall include: (1) An appropriate identification of the applicant school; (2) Satisfactory evidence of the applicant's eligibility as a private nonprofit elementary or secondary school; (3) Statements of financial condition and information concerning credit of the applicant and of any proposed guarantor; (4) A request for a loan in a definite amount; (5) A proposed plan of repayment of principal with interest not to extend beyond 10 years from the date of the loan; (6) 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 grade level (i.e., elementary or secondary) at which the equipment is to be used; (7) If funds are requested for minor remodeling, a full description of the work to be done, the estimated cost thereof, and the necessity for such minor remodeling in order to make effective use of equipment; (8) A certification that the equipment is to be used primarily for providing education in academic subjects, except that in the case of storage equipment it will be used solely for the care and protection of equipment, including materials for providing education in academic subjects, 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; (9) 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 (10) Such additional information as the Commissioner may require. (c) Authorization for application. The application shall be signed by an authorized representative of the school, and shall contain satisfactory evidence of(1) The authority to make the loan application; (2) The authority of the person signing the application to act as the representative of the school and to negotiate for the loan; (3) The legal identity of the corporation, association or other entity that will be the maker of the note; and (4) The designation, by title, of the officer, or officers, empowered to execute the note on behalf of such entity. [30 F.R. 994, Jan. 30, 1965, as amended at 36 F.R. 2869, Feb. 11, 1971] Subpart D-Loan Procedures § 142.4 Review of application. Action with respect to approving a loan application will be taken only after a review of information contained in the application and any other pertinent information which the Commissioner may possess. § 142.5 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, the Commissioner may cancel the loan approval. (b) Payment to school. Upon receipt of a duly executed note, the Commissioner will cause the loan funds to be paid by the U.S. Treasury to the applicant at the time loan funds will be needed. (c) Cancellation of loan approval. If the applicant does not request the loan funds within a reasonable time, the Com missioner may cancel the approval of the loan. [30 F.R. 994, Jan. 30, 1965, as amended at 36 F.R. 2869, Feb. 11, 1971] § 142.6 Loan conditions. (a) Limitation on amount. Each loan will be limited to the amount which may reasonably be expected to be expended without undue delay for the acquisition of equipment or for minor remodeling. (b) Assurance of repayment. All loans will be made on the basis of such security or evidence of financial responsibility as will reasonably assure repayment. (c) 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, or for the performance of minor remodeling, substantially similar to the project described in the approved application. (d) 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 paragraph (c) of this section, and loan funds used but not reported as required in § 142.9, 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, or for the performance of minor remodeling, and not reported does not exceed two percent of the amount lent or $200, whichever is smaller. (e) 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. (f) Disposal or unauthorized use of equipment acquired. If during the period of the loan the applicant disposes of equipment or uses it for a purpose not 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. Equipment acquired under an approved project for academic subjects may be used when available and suitable in providing education in other subjects, if there exists a critical need therefor in the judgment of the borrower. Equipment shall be deemed available only when it is not needed for the time being for use in academic subjects. (g) Time of acquisition. Loan funds shall not be used for the acquisition of equipment, including minor remodeling, for which firm commitments have been made prior to the time when the application is received by the Commissioner in substantially approvable form. (h) [Reserved] (i) Requirement with respect to minor remodeling. In a case of a project involving minor remodeling, the application for a loan shall provide assurances that all laborers and mechanics employed by contractors or subcontractors on such minor remodeling will be paid wages at rates not less than those prevailing on similar minor remodeling in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5); that such contractors and subcontractors will comply with the regulations in 29 CFR Part 3 (see 29 F.R. 97), and include all clauses required by 29 CFR 5.5 (a) and (c) (see 29 F.R. 100, 101, 13463, and 29 CFR Part 3, Subpart B-Interpretations of the Fringe Benefits Provisions of the Davis-Bacon Actpublished at 29 F.R. 13465); and that the nondiscrimination clause prescribed by Executive Order No. 11246 of September 24, 1965 (30 F.R. 12319), will be incorporated in any contract for minor remodeling as defined in said Executive order. (20 U.S.C. 1232b) [30 F.R. 994, Jan. 30, 1965, as amended at 36 F.R. 2870, Feb. 11, 1971] § 142.7 Interest. (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 marketable obligations of the United States with redemption periods to maturity comparable to the average maturities of such loans as computed at the end of the fiscal year next preceding the date the application (a) Schedule of repayments. Repayments of principal with accrued interest shall be made on such dates as may be 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) Prepayment. Loans may be prepaid in full or in part at any time, with accrued interest to the date of payment, without penalty for prepayment. (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 such funds sufficient readily to identify all transactions with the loan funds. Each such applicant shall also maintain intact all records supporting the use of loan funds for three years after receipt of such funds, or until the loan has been repaid in full, whichever is later. Such records shall be made available to fiscal representatives of the Government for audit purposes. [30 F.R. 994, Jan. 30, 1965, as amended at 36 F.R. 2870, Feb. 11, 1971] Plan requirements applicable to guidance and counseling programs. 143.36 Transition provisions. AUTHORITY: The provisions of this Part 143 issued under sections 501-504, 1001, 72 Stat. 1592-1503, 1602, as amended; 20 U.S.C. 481-484, 581. SOURCE: The provisions of this Part 143 appear at 30 F.R. 134, Jan. 7, 1965, unless otherwise noted. Subpart A-Definitions As used in this part: § 143.1 (a) "Act" means the National Defense Education Act of 1958, as amended, 20 U.S.C. Ch. 17. (b) "Commissioner" means the United States Commissioner of Education, Department of Health, Education, and Welfare. (c) "Department" means the Department of Health, Education, and Welfare. (d) "Elementary school" means a school which provides elementary education, as determined under State law. (e) "Fiscal year," as used with respect to reporting and accounting requirements, means the period beginning on the first day of July and ending on the following June 30. (The calendar year of the ending date is used to designate the fiscal year.) (f) "Junior college" means an institution of higher education which (1) is organized and administered principally to provide a two-year program which is acceptable for full credit toward a bachelor's degree; (2) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (3) is legally authorized within the State to provide a program of education beyond secondary education; (4) is a public or other nonprofit institution; (5) is accredited as a junior college by a nationally recognized accrediting agency or association or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited; and (6), if a branch of an institution of higher education offering four or more years of higher education, is located in a community different from, and beyond a reasonable commuting distance from, the community in which the main campus of the parent institution is located. (g) "Local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or other political subdivision in a State, or any other public institution or agency having administrative control and direction of a public elementary or secondary school. (h) "Public," as applied to any school or institution, includes a school or institution of any agency of the United States, except that no such school or institution shall be eligible to receive any grant, loan, or other payment under the Act. (i) "Secondary school" means a school which provides a secondary education, as determined under State law. (j) "State" means a State of the Union, Puerto Rico, the District of Columbia, the Canal Zone, Guam, American Samoa, or the Virgin Islands. (k) "State educational agency" or "State agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the governor or by State law. (1) "Technical institute" means an institution of higher education which (1) is organized and administered principally to provide a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge; (2) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (3) is legally authorized within the State to provide a program of education beyond secondary education; (4) is a public or other nonprofit institution; (5) is accredited as a technical institute by nationally recognized accrediting agency or association or, if not so ac a credited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited; and (6), if a branch of an institution of higher education offering four or more years of higher education, is located in a community different from, and beyond a reasonable commuting distance from, the community in which the main campus of the parent institution is located. Subpart B-State Plan-General § 143.2 State plan. (a) Purpose. A basic condition for the payment of Federal funds to a State under sections 501-504 of the Act is a State plan meeting the requirements of sections 503(a) and 1004(a) of the Act by providing (1) a program for testing students, as specified in subpart F of these regulations, in the public elementary and secondary schools or in the public junior colleges and technical institutes of such State, and, to the extent authorized by law in other elementary and secondary schools and in other junior colleges and technical institutes in such State; (2) a program of guidance and counseling, as specified in subpart G of these regulations, in the public elementary and secondary schools or public junior colleges and technical institutes of such State; (3) that the State agency will be the sole agency for administering the plan; (4) that the State agency will make such reports as the Commissioner deems necessary; and (5) for fiscal control and fund accounting procedures as specified in these regulations. (b) Effect of State plan. The plan, when approved by the Commissioner, shall constitute the basis on which Federal grants will be made, as well as a basis for determining the propriety of State and local expenditures in which Federal participation is requested. (c) Submission. The State plan and all amendments thereto shall be submitted to the Commissioner by a duly authorized officer of the State educational agency. The plan shall indicate the official or officials authorized to submit plan material. (d) Amendments. The administration of the programs shall be kept in conformity with the approved State plan. Whenever there is any material change |