[Code of Federal Regulations]
[Title 49, Volume 6]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR639.15]

[Page 55]
 
                        TITLE 49--TRANSPORTATION
 
                             TRANSPORTATION
 
PART 639--CAPITAL LEASES--Table of Contents
 
                         Subpart B--Requirements
 
Sec. 639.15  Eligible forms of grant.

    A recipient may choose to receive capital assistance for a capital 
lease approved under this part--
    (a) In a single grant under which lease payments may be drawn down 
periodically for the life of the lease; or
    (b) In increments that are obligated by FTA periodically (usually in 
annual section 9 grants). In this case, a recipient--
    (1) Must certify to FTA that it has the financial capacity to meet 
its future obligations under the lease in the event Federal funds are 
not available for capital assistance in subsequent years; and
    (2) May incur costs under its lease before FTA's obligation of 
future increments of funding for such a lease. These costs are 
reimbursable in future grants, so long as the terms of the lease do not 
substantially change.