[Code of Federal Regulations]

[Title 49, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR266.21]



[Page 847-848]

 

                        TITLE 49--TRANSPORTATION

 

       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 

                             TRANSPORTATION

 

PART 266_ASSISTANCE TO STATES FOR LOCAL RAIL SERVICE UNDER SECTION 5 

OF THE DEPARTMENT OF TRANSPORTATION ACT--Table of Contents

 

Sec. 266.21  Grant agreement and disbursement.



    (a) Grant agreement. (1) Upon the approval of an application meeting 

the requirements of Sec. 266.17 of this part, a grant agreement for the 

Federal share of the approved amount of estimated program costs will be 

executed by the Administrator and the grantee.

    (2) The grant agreement will identify the amount of the grantee's 

share of



[[Page 848]]



program costs to be furnished in cash and through approved in-kind 

benefits. The grantee shall expend a pro-rata share of its cash 

contribution at the same time payments of the Federal share are made 

available to the grantee.

    (b) Disbursement. (1) Federal funds are provided either in advance 

by a letter-of-credit or a Treasury check or by reimbursement in 

accordance with Attachment J of OMB Circular A-102.

    (2) Prior to receipt of advance payments, the grantee must have 

demonstrated to the satisfaction of the Administrator that it has 

established procedures to comply with OMB Circular A-102, Attachment J, 

including procedures that will minimize the time elapsing between the 

receipt of funds by the grantee and their disbursement. Evidence of such 

compliance shall be provided to the Administrator at least 30 days prior 

to the anticipated date of receipt of advance payments. An advance by 

letter-of-credit is used when the rail service assistance is expected to 

be provided for a minimum of one (1) year, and is expected to involve 

annual payments aggregating at least $120,000. Otherwise, advance 

payments are made by Treasury check.

    (3) If the grantee is not eligible for advance payments or does not 

desire them, the grantee will be reimbursed for eligible expenditures at 

the end of each fiscal quarter upon submission of a request for 

reimbursement.

    (4) Before disbursement of Federal funds can be made to a grantee 

for payment to third parties under this subsection, the grantee must 

have executed an agreement with the third party.

    (5) Acquisition assistance will be disbursed only after the 

following have been approved by the Administrator:

    (i) A title opinion of the chief legal officer of the grantee that 

describe the type of title being acquired, and if a general warranty 

deed is not being given, it must explain why it could not be given. The 

opinion shall also advise of any need for use of the State's eminent 

domain powers to assure adequate title. In addition, the opinion shall 

explain how the defects disclosed by the title search might affect the 

marketability of the property;

    (ii) A written determination that the property acquired is limited 

to the land and facilities that are needed for the rail freight services 

which would have been curtailed or abandoned but for the acquistion has 

been accepted by the Administrator; and

    (iii) A written determination that the purchase price is consistent 

with the value of the property interest being acquired, and the evidence 

upon which the determination is based.

    (c) Settlement. (1) Settlement under the grant agreement is made on 

the basis of a Federal audit which has determined the allowable costs 

over the entire term of the grant agreement. If the Federal audit 

determines that the allowable costs under the grant agreement are less 

than the amount of the grant, the difference shall be refunded to FRA at 

the end of the fiscal year in which the audit was made unless it has 

become the subject of another executed grant agreement. Upon termination 

of a State's participation in the Rail Service Assistance Program, the 

State shall repay FRA the Federal share of any unused rehabilitation and 

improvement assistance and any accumulated interest.