[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1309.23]

[Page 245-246]
 
                        TITLE 45--PUBLIC WELFARE
 
CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES
 
PART 1309--HEAD START FACILITIES PURCHASE--Table of Contents
 
                Subpart C--Protection of Federal Interest
 
Sec. 1309.23  Insurance, bonding and maintenance.

    (a) At the time of acquiring a facility or receiving approval for 
the previous purchase of a facility, the grantee shall obtain insurance 
coverage for the facility which is of the same type as the coverage it 
has obtained for other real property it owns, which includes student 
liability insurance and which at least meets the requirements of the 
coverage specified in paragraphs (a)(1) and (2) of this section as 
follows:
    (1) A title insurance policy which insures the fee interest in the 
facility for an amount not less than the full appraised value as 
approved by ACF, or the amount of the purchase price, whichever is 
greater, and which contains an endorsement identifying ACF as a loss 
payee to be reimbursed if the title fails. If no endorsement naming ACF 
as loss payee is made, the grantee is required to pay ACF the title 
insurance proceeds it receives in the event of title failure; and
    (2) A physical destruction insurance policy, including flood 
insurance where

[[Page 246]]

appropriate, which insures the full replacement value of the facility 
from risk of partial and total physical destruction. The insurance 
policy is to be maintained for the period of time the facility is owned 
by the grantee.
    (b) The grantee shall submit copies of such insurance policies to 
ACF within five days of acquiring the facility or receiving approval for 
the previous purchase of a facility. If the grantee has not received the 
policies in time to submit copies within this period, it shall submit 
evidence that it has obtained the appropriate insurance policies within 
five days of acquiring the facility or receiving approval for the 
previous purchase of a facility, and it shall submit copies of the 
policies within five days of its receipt of them.
    (c) The grantee must maintain facilities acquired with grant funds 
in a manner consistent with the purposes for which the funds were 
provided and in compliance with State and local government property 
standards and building codes.