[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR307.12]

[Page 626-627]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 307_ECONOMIC ADJUSTMENT ASSISTANCE INVESTMENTS--Table of Contents
 
Subpart B_Special Requirements for Revolving Loan Funds and Use of Grant 
                                  Funds
 
Sec.  307.12  Revolving Loan Fund Income.

    (a) General requirements. RLF Income must be placed into the RLF 
Capital base for the purpose of making loans or paying for eligible and 
reasonable administrative costs associated with the RLF's operations. 
RLF Income may fund administrative costs, provided:
    (1) Such RLF Income and the administrative costs are incurred in the 
same twelve-month (12) reporting period;
    (2) RLF Income that is not used for administrative costs during the 
twelve-month (12) reporting period is made available for lending 
activities;
    (3) RLF Income shall not be withdrawn from the RLF Capital base in a 
subsequent reporting period for any purpose other than lending without 
the prior written consent of EDA; and
    (4) The RLF Recipient completes an RLF Income and Expense Statement 
(the ``Income and Expense Statement'') as required under Sec.  
307.14(c).
    (b) Compliance guidelines. When charging costs against RLF Income, 
RLF Recipients must comply with applicable OMB cost principles and RLF 
audit guidelines as found in:
    (1) OMB Circular A-87 for State, local, and Indian tribal 
governments, OMB Circular A-122 for non-profit organizations other than 
institutions of higher education, hospitals or organizations named in 
OMB Circular A-122 as not subject to such circular, and OMB Circular A-
21 for educational institutions; and
    (2) OMB Circular A-133 for Single Audit Act requirements for States, 
local governments, and non-profit organizations and the Compliance 
Supplement, as appropriate.

[[Page 627]]

    (c) Priority of payments on defaulted RLF loans. When an RLF 
Recipient receives proceeds on a defaulted RLF loan that is not subject 
to liquidation pursuant to Sec.  307.20, such proceeds shall be applied 
in the following order of priority:
    (1) First, towards any costs of collection;
    (2) Second, towards outstanding penalties and fees;
    (3) Third, towards any accrued interest to the extent due and 
payable; and
    (4) Fourth, towards any outstanding principal balance.