[Code of Federal Regulations] [Title 7, Volume 11] [Revised as of January 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR1703.121] [Page 64-65] TITLE 7--AGRICULTURE CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 1703--RURAL DEVELOPMENT--Table of Contents Subpart E--Distance Learning and Telemedicine Grant Program Sec. 1703.121 Approved purposes for grants. For distance learning and telemedicine projects, grants shall finance only the costs for approved purposes. Grants shall be expended only for the costs associated with the initial capital assets associated with the project. The following are approved grant purposes: (a) Acquiring, by lease or purchase, eligible equipment as defined in Sec. 1703.102; (b) Acquiring instructional programming; and (c) Providing technical assistance and instruction for using eligible equipment, including any related software; developing instructional programming; providing engineering or environmental studies relating to the establishment or expansion of the [[Page 65]] phase of the project that is being financed with the grant (this purpose shall not exceed 10 percent of the grant). [64 FR 14357, Mar. 25, 1999, as amended at 67 FR 3040, Mar. 11, 2002]