(a) Schedule of repayments. Repayments of principal with accrued interest shall be made on such dates as may be agreed upon by the Commissioner and the applicant.

(b) Date of maturity. A loan may be made for any period of time except that the date of maturity shall be not more than ten years after the date on which the loan is made.

(c) Prepayment. Loans may be prepaid in full or in part at any time, with accrued interest to the date of payment, without penalty for prepayment.

§ 142.9 Reports and records.

(a) Reports. Each applicant receiving a loan shall furnish a completion report upon completing the approved project, and shall furnish such progress or other reports as the Commissioner may from time to time require regarding the use of loan funds.

(b) Records. Each applicant receiving a loan shall keep the loan in a separate bank account or maintain a separate accounting of such funds sufficient readily to identify all transactions with the loan funds. Each such applicant shall also maintain intact all records supporting the use of loan funds for three years after receipt of such funds, or until the loan has been repaid in full, whichever is later. Such records shall be made available to fiscal representatives of the Government for audit purposes.

Subpart G-The Humanities and The Arts

SOURCE: The provisions of this Subpart G appear at 31 F.R. 825, Jan. 21, 1966, unless otherwise noted.

§ 142.20

Acquisition of equipment and minor remodeling for instruction in the humanities and the arts.

(a) The Commissioner will reserve 12 percentum of the funds appropriated pursuant to section 12 of the National Foundation on the Arts and the Humanities Act of 1965 (P.L. 89-209) and will allot the amount so reserved among the several States (other than the Canal Zone) in the same manner as is provided for in section 305(a) of the National Defense Education Act of 1958, and will reallot such funds among such States in the same manner as is provided for in section 302(c) of said National Defense Education Act of 1958.

(b) Funds alloted or realloted under paragraph (a) of this section will be available for the acquisition of equipment and minor remodeling for use in providing education in the humanities and the arts and administered in the same manner as funds similarly allotted or reallotted under sections 305(a) and 302(c) of the National Defense Education Act of 1958 for the acquisition of equipment and minor remodeling for use in providing education in the critical subjects are administered under Subparts A through D of this part.

§ 142.21 Definitions.

As used in this subpart:

(a) The term "The humanities" includes, but is not limited to, the study of the following: Language, both modern and classic; linguistics; literature; history; jurisprudence; philosophy; archeology; the history, criticism, theory, and practice of the arts; and those aspects of the social sciences which have humanistic content and employ humanistic methods.

(b) The term “The arts” includes, but is not limited to, music (instrumental and vocal), dance, drama, folk art, creative writing, architecture and allied fields, painting, sculpture, photography, graphic and craft arts, industrial design, costume and fashion design, motion pictures, television, radio, tape and sound recording, and the arts related to presentation, performance, execution, and exhibition of such major art forms.

(a) "Act" means the National Defense Education Act of 1958, as amended, 20 U.S.C. Ch. 17.

(b) "Commissioner" means the United States Commissioner of Education, Department of Health, Education, and Welfare.

(c) "Department" means the Department of Health, Education, and Welfare.

(d) "Elementary school" means a school which provides elementary education, as determined under State law.

(e) "Fiscal year," as used with respect to reporting and accounting requirements, means the period beginning on the first day of July and ending on the following June 30. (The calendar year of the ending date is used to designate the fiscal year.)

(f) "Junior college" means an institution of higher education which (1) is organized and administered principally to provide a two-year program which is acceptable for full credit toward a bachelor's degree; (2) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (3) is legally authorized within the State to provide a program of education beyond secondary education; (4) is a

public or other nonprofit institution; (5) is accredited as a junior college by a nationally recognized accrediting agency or association or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited; and (6), if a branch of an institution of higher education offering four or more years of higher education, is located in a community different from, and beyond a reasonable commuting distance from, the community in which the main campus of the parent institution is located.

(g) "Local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or other political subdivision in a State, or any other public institution or agency having administrative control and direction of a public elementary or secondary school.

(h) "Public," as applied to any school or institution, includes a school or institution of any agency of the United States, except that no such school or institution shall be eligible to receive any grant, loan, or other payment under the Act.

(i) "Secondary school" means a school which provides a secondary education, as determined under State law.

(j) "State" means a State of the Union, Puerto Rico, the District of Columbia, the Canal Zone, Guam, American Samoa, or the Virgin Islands.

(k) "State educational agency" or "State agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the governor or by State law.

(1) "Technical institute" means an institution of higher education which (1) is organized and administered principally to provide a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional

level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge; (2) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (3) is legally authorized within the State to provide a program of education beyond secondary education; (4) is a public or other nonprofit institution; (5) is accredited as a technical institute by nationally recognized accrediting agency or association or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited; and (6), if a branch of an institution of higher education offering four or more years of higher education, is located in a community different from, and beyond a reasonable commuting distance from, the community in which the main campus of the parent institution is located.

a

Subpart B-State Plan-General
Provisions

§ 143.2 State plan.

(a) Purpose. A basic condition for the payment of Federal funds to a State under sections 501-504 of the Act is a State plan meeting the requirements of sections 503 (a) and 1004 (a) of the Act by providing (1) a program for testing students, as specified in subpart F of these regulations, in the public elementary and secondary schools or in the public junior colleges and technical institutes of such State, and, to the extent authorized by law in other elementary and secondary schools and in other junior colleges and technical institutes in such State; (2) a program of guidance and counseling, as specified in subpart G of these regulations, in the public elementary and secondary schools or public junior colleges and technical institutes of such State; (3) that the State agency will be the sole agency for administering the plan; (4) that the State agency will make such reports as the Commissioner deems necessary; and (5) for fiscal con

trol and fund accounting procedures as specified in these regulations.

(b) Effect of State plan. The plan, when approved by the Commissioner, shall constitute the basis on which Federal grants will be made, as well as a basis for determining the propriety of State and local expenditures in which Federal participation is requested.

(c) Submission. The State plan and all amendments thereto shall be submitted to the Commissioner by a duly authorized officer of the State educational agency. The plan shall indicate the official or officials authorized to submit plan material.

(d) Amendments. The administration of the programs shall be kept in conformity with the approved State plan. Whenever there is any material change in the content or administration of a program, or when there has been a change in pertinent State law or in the organization, policies, or operations of the State educational agency affecting a program under the plan, the State plan shall be appropriately amended.

(e) Certificate of the State educational agency. The State plan and all amendments thereto shall include as an attachment a certificate of the officer of the State educational agency authorized to submit the State plan to the effect that the plan or amendment has been adopted by the State agency and that the plan, or plan as amended, will constitute the basis for operation and administration of the program in which Federal participation under sections 501-504 (a), inclusive, will be requested.

(f) Certificate of the State Attorney General or other appropriate State legal officer. The State plan shall also include, as an attachment, a certificate by the appropriate State legal officer to the effect that the State agency named in the plan is the "State educational agency" as defined in § 143.1(k) which has authority under State law to submit the State plan and to carry out the programs described therein as the sole State agency responsible for administering the plan, and that all of the plan provisions are consistent with State law.

§ 143.3 State agency for administration.

(a) Designation. The State plan shall give the official name of the agency which will be the sole agency for administering the plan. Such agency shall

meet the criteria set forth in § 143.1(k) defining "State educational agency."

(b) Organization. The State plan shall describe, by chart or otherwise, the organization of the State staff for the administration of the programs set forth in the plan. The lines of authority within the administrative unit or units responsible for the programs under the plan shall be shown, together with the administrative relationships of such unit or units to the rest of the State educational agency and to other related agencies.

§ 143.4 Authority of State agency.

The State plan shall set forth the authority of the State educational agency under State law to submit the State plan and to administer and supervise the programs set forth therein, including a description of the functional relationship between the State agency and (a) local educational agencies, and (b) junior colleges and technical institutes. Citations to, or copies of, all directly pertinent statutes and interpretations of law by appropriate State officials, whether by regulation, policy statement, opinion of the appropriate State legal officer, or court decision, shall be furnished as part of the plan. All copies shall be certified as correct by an appropriate official. If the agency is not authorized under State law to expend funds for testing students in any one or more elementary or secondary schools, or junior colleges or technical institutes, in the State, the authorized officer of the agency shall so certify, indicating the institutions or types of institutions thus excluded and giving the legal basis for his conclusion. In such cases, the Commissioner will arrange for testing such students under the authority contained in section 504(b) of the Act.

§ 143.5 Custody of funds.

The State plan shall designate the officer who will receive and provide for the custody of all funds to be expended under applicable State laws and regulations on requisition or order of the State agency.

§ 143.6 State fiscal procedures.

(a) State administration. The State plan shall provide for the fiscal administration of the plan by describing such

fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State under the plan, including such funds paid by the State to the local and other participating educational agencies. Such administration shall be conducted in accordance with applicable State laws, policies, and procedures, which shall be identified in the plan or set forth in an appendix. Accounts and supporting documents relating to any program involving Federal participation shall be adequate to permit an accurate and expeditious audit of the program.

(b) Audit of local and other participating educational agencies. All expenditures claimed for Federal participation shall be audited either by the State or by appropriate auditors at the local level. The State plan shall indicate how the accounts of local educational agencies and other agencies participating in the State plan will be audited; and, when the audit is to be carried out at the local level, how the State agency will secure information necessary to assure proper use of funds expended under sections 503 and 504(a) of the Act by such educational agencies.

§ 143.7 Duties and qualifications of State personnel in professional positions.

(a) Staff. The State plan shall describe the duties of State administrative and supervisory positions under the plan. The State plan shall also set forth the minimum experience, education and other related qualifications required of all State personnel to be engaged in professional administration and supervision of guidance and counseling, and testing, programs. If State statutes or regulations establish such positions and give such information, the plan shall include citation to such statutes, or set forth in an appendix copies of pertinent

regulations.

(b) Advisory committee. If a State advisory committee on guidance and counseling, or testing, is established, the plan shall describe the general composition and method of establishment of the committee and its duties.

§ 143.8 State agency program activities. The plan shall set forth the program of the State agency for the administration and supervision of all plan programs, including standards and pro

The State plan shall provide that the State agency will participate in such periodic consultations and will make such reports to the Commissioner at such time, in such form, and containing such information as the Commissioner may consider reasonably necessary to enable him to perform his duties under Part A, Title V, of the Act and will keep such records and afford such access thereto, and will comply with such other requirements, as the Commissioner may find necessary to assure the correctness and verification of such reports.

§ 143.10 Continuing review of State ad