CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XVII—RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE (parts 1700 to 1794) > PART 1703—RURAL DEVELOPMENT > SUBPART F—Distance Learning and Telemedicine Combination Loan and Grant Program (§1703.130 to §1703.138-1703.139) > 1703.132—Nonapproved purposes for a combination loan and grant.

1703.132—Nonapproved purposes for a combination loan and grant.

(a) Without limitation, a combination loan and grant made under this subpart shall not be expended:
(1) To pay salaries, wages, or employee benefits to medical or educational personnel;
(2) To pay for the salaries or administrative expenses of the applicant or the project;
(3) To purchase equipment that will be owned by the local exchange carrier or another telecommunications service provider, unless the applicant is the local exchange carrier or other telecommunications service provider;
(4) To duplicate facilities providing distance learning or telemedicine services in place or to reimburse the applicant or others for costs incurred prior to RUS' receipt of the completed application;
(5) For projects located in areas covered by the Coastal Barrier Resources Act (16 U.S.C. 3501 et seq. );
(6) For any purpose that the Administrator has not specifically approved;
(7) Except for leases (see § 1703.131 ), to pay the cost of recurring or operating expenses for the project; or,
(8) For any other purposes not specifically outlined in § 1703.131.
(b) Except as otherwise provided in § 1703.112, funds shall not be used to finance a project, in part, when the success of the project is dependent upon the receipt of additional financial assistance under this subpart or is dependent upon the receipt of other funding that is not assured.