[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1778.10]

[Page 1005]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1778--EMERGENCY COMMUNITY WATER ASSISTANCE GRANTS--Table of Contents
 
Sec. 1778.10  Restrictions.

    (a) Grant funds may not be used to:
    (1) Assist any city or town with a population in excess of 10,000 
inhabitants according to the most recent decennial census of the United 
States.
    (2) Assist a rural area that has a median household income in excess 
of the statewide nonmetropolitan median household income according to 
the most recent decennial census of the United States.
    (3) Finance facilities which are not modest in size, design, cost, 
and are not directly related to correcting the potable water quantity or 
quality problem.
    (4) Pay loan or grant finder's fees.
    (5) Pay any annual recurring costs that are considered to be 
operational expenses.
    (6) Pay rental for the use of equipment or machinery owned by the 
rural community.
    (7) Purchase existing systems.
    (8) Refinance existing indebtedness, except for short-term debt 
incurred in accordance with Sec. 1778.9(h).
    (9) Make reimbursement for projects developed with other grant 
funds.
    (10) Finance facilities that are not for public use.
    (b) Nothing in paragraph (a)(1) of this section shall preclude rural 
areas from submitting joint proposals for assistance under this part. 
Each entity applying for financial assistance under this part to fund 
their share of a joint project will be considered individually.