[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 45CFR77.1]



[Page 278]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 77_REMEDIAL ACTIONS APPLICABLE TO LETTER OF CREDIT 

ADMINISTRATION--Table of Contents

 

Sec.  77.1  Purpose.



    Letters of credit with the United States Treasury, issued by the 

Department to States or other grantees and contractors, are a convenient 

means for disbursing Federal funds to recipients of grant awards or 

contracts (recipient organizations) under the programs of this and other 

Executive Departments. The sound and efficient operation of the letter-

of-credit system is dependent in large part upon the honesty, good 

faith, and responsible financial management of recipient organizations 

that receive funds pursuant to letters of credit. This part sets forth 

conditions that may prompt the Department to seek remedial action 

against a recipient organization operating under a letter of credit and 

the procedures that will be used to reach a final decision regarding the 

taking of remedial actions against a recipient organization.



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