the benefit of any private shareholder or individual.

(e) "Project" means the development, expansion, or improvement activity, constituting an integral part of a social work education program, which is funded jointly under this part by the Federal government and the grantee.

§ 280.3 Eligibility for grants.

Grants may be made to:

(a) Public or nonprofit private colleges and universities, for expansion, development, and improvement of baccalaureate undergraduate programs in social work. The program shall be placed within an administrative structure to achieve liberal arts content, or under the administrative direction of a school of social work;

(b) Schools of social work, for expansion, development, and improvement of programs for the graduate training of professional social work personnel;

(c) Public or nonprofit private colleges and universities which have schools of social work, for the expansion, development, and improvement of combined graduate-undergraduate programs in so

cial work;

(d) Associations of schools of social work and regional education associations, for the purposes described in paragraphs (a), (b), and (c) of this section.

§ 280.4 Matching requirements.

Federal funds will be granted on the basis of project applications, and may pay only part of the cost of the supported activity. The applicant must identify by dollar amount its contribution to the project for the development, expansion or improvement of education for social work.

§ 280.5 Applications.

Any applicant for a grant under this part may file application therefor with Office of Research, Demonstrations and Training, Division of Grants Management, Social and Rehabilitation Service, Department of Health, Education, and Welfare, Washington, D.C. 20201, on such forms and containing such information as the Service may prescribe. The application shall cover:

(a) The purpose and objectives of the project;

(b) A description of the nature and scope of the activities to be undertaken

and methods to be used in accomplishing them;

(c) A proposed budget;

(d) Designation of a project director; and

(e) Such other information as the Service may require.

Applications will be considered by an Advisory Committee which will make recommendations to the Administrator. The Administrator then determines the action to be taken with respect to each application, and informs the applicant accordingly.

§ 280.6 Grant awards.

All grant awards shall be in writing, shall set forth the amount of funds granted, and shall constitute for such amounts the encumbrance of Federal funds available for such purpose on the date of the award. The initial award shall also specify the total period for which support is contemplated if the activity is successfully carried out and Federal funds are available. For continuation support, grantees must make annual separate application in the form and detail required by the Service.

§ 280.7 Criteria in judging applications.

Applications will be considered from a nationwide perspective of the relative need in the regions and States for personnel trained in social work, and with regard to the potential of the educational institutions to contribute increased numbers of qualified individuals to the manpower needs in these areas, by use of these funds. Among relevant factors to be considered, special emphasis will be placed on innovation in curriculum objectives, content and methods. § 280.8

Revisions.

A grantee shall request that the project as approved be revised whenever the approved plan of operation or method of financing is materially changed. Revisions originating with the grantee shall be submitted in writing and will be given appropriate review. Revisions of an approved project may be initiated by the Administrator if, on the basis of reports, it appears that Federal funds are not being used effectively, or if changes are made in Federal appropriations, laws, regulations, or policies governing these grants.

§ 280.9 Use of funds.

Federal and grantee project funds may be used for.

(a) Salaries, cost of travel, and related expenses of personnel necessary for the project;

(b) Necessary supplies, equipment, and related expenses;

(c) Administrative costs directly related to the project, and indirect costs at a rate prescribed by the Department of Health, Education, and Welfare. Expenditures under the project shall be in connection with the conduct of the project as approved;

(d) Minor improvements to existing facilities of undergraduate or graduate programs in social work.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Administrator in writing, giving the reasons for termination, an accounting of funds granted for the project, and other pertinent information. The grant may be terminated, in whole or in part, at any time at the discretion of the Administrator. The grantee will be given prompt notice of the termination, including the reasons therefor. Such termination shall not affect obligations incurred prior to the termination of the grant. Upon termination of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded. § 280.11

Publications and copyright. Grantees may publish results of any activity assisted by the grant without

prior review by the Service. Any such publication must acknowledge the assistance received under the grant, and copies must be furnished to the Service. Where an approved project results in a book or other copyrightable material, the author is free to copyright the work, but the Service reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, all copyrightable or copyrighted material resulting from the grant-supported activity. § 280.12 Records and reports.

(a) The grantee shall establish and follow such accounting, budgetary, and other fiscal procedures as are necessary for the proper and efficient administration of the project, and shall maintain fiscal records. Such records shall show for each grant period the amount and disposition by the grantee of Federal funds and the grantee's share, the total cost for the grant period, and such other records as will facilitate an effective audit.

(b) The grantee shall account for all expenditures of project funds by presenting or otherwise making available vouchers or other evidence, satisfactory to the Service, of such expenditures.

(c) The granteee shall provide a progress report with each submission of an application for continuation support. A final report shall be submitted not later than 3 months after the termination of the project.

(d) The grantee shall maintain such other records and make such other reports, in such form and containing such information, as the Service may require.

301.28 301.29

Joint operations and activities.

Purchase of notes of a liquidating credit union.

301.30 Safe deposit box service.

AUTHORITY: The provisions of this Part 301 issued under sec. 21, 73 Stat. 635, 12 U.S.C. 1766; § 301.21 issued under sec. 8(5), 73 Stat. 630; 12 U.S.C. 1757(5); §§ 301.22 and 301.23 issued under sec. 8(12), 73 Stat. 631; 12 U.S.C. 1757(12); § 301.24 issued under secs. 14, 21, 73 Stat. 632, 635; 12 U.S.C. 1761b, 1766; § 301.25 issued under secs. 434, 16, 79 Stat. 1247, 1048; 20 U.S.C. 1084, 994.

SOURCE: The provisions of this Part 301 appear at 25 F.R. 5286, June 14, 1960, unless otherwise noted.

(a) Persons desiring to form a Federal credit union shall submit, in duplicate, on forms prescribed by the Bureau, a proposed organization certificate

(Form FCU 503B). The certificate shall be subscribed to before an officer competent to administer oaths by not less than 7 natural persons who have a common bond of occupation, or association, or are within a well-defined neighborhood, community, or rural district, and shall specifically state:

(1) The proposed name of the association.

(2) The location of the proposed Federal credit union and the territory in which it will operate.

(3) The names and addresses of the subscribers to the certificate and the number of shares subscribed by each.

(4) The par value of the shares, which shall be $5 each.

(5) The proposed field of membership, specified in detail.

(6) The term of the existence of the corporation, which may be perpetual.

(7) The fact that the certificate is made to enable such persons to avail themselves of the advantages of the Federal Credit Union Act, as amended.

Copies of the form of organization certificate may be obtained from the Washington Office of the Bureau or from any Regional Office.

(b) The proposed organization certificates shall be submitted to the Regional Representative together with a check or money order payable to the Bureau of Federal Credit Unions in the amount of $25.00 in payment of the investigation fee of $20.00 and charter fee of $5.00. The Regional Representative will investigate and make recommendations as to whether the proposed organization certificate conforms to the Act; as to the general character and fitness of the subscribers thereto; and as to the economic advisability of establishing the proposed Federal credit union. The report and recommendation of the Regional Representative shall be forwarded to the Bureau in Washington, D.C. The Director shall consider the proposed organization certificate and the recommendations of the Regional Representative and shall approve or disapprove the proposed organization certificate. The organization certificate, if approved, shall be the charter of the Federal credit union. If the organization certificate is disapproved, the incorporators shall be notified of the basis for such action and the charter fee of $5.00 shall be returned to them. Under no circumstances shall the investigation fee of $20.00 be returned.

§ 301.3 Standard form of bylaws.

(a) Proposed bylaws, in form and content approved by the Director, shall be submitted by the incorporators to the Director for his approval at the time of submitting an organization certificate to the Regional Representative.

(b) Specimen copies of the standard form of bylaws (FCU 503-C) may be obtained from the Regional or Washington Offices of the Bureau.

§ 301.4 Amendment of bylaws and

charters.

Amendments to the bylaws of a Federal credit union may be adopted and amendments to the charter requested as provided in the bylaws. No amendment of the bylaws or of the charter shall become effective, however, until approved in writing by the Director.

§ 301.5 Other applications.

(a) Except as otherwise provided by rule or regulation of the Bureau all applications, requests, and submittals regarding Federal credit unions, for which no form of application has been prescribed by the Bureau, shall be in writing, signed by the applicant or his duly authorized agent, and shall contain a statement of the action requested, the reasons and facts relied upon as the basis for such requested action, and the applicant's interest in the matter. The application, request, or submittal shall be addressed to the Regional Representative or to the Bureau of Federal Credit Unions in Washington, D.C. The applicant shall furnish such other pertinent information as may be required by the Director.

(b) Unless otherwise provided in these

Total assets

$500,000 or less..

regulations, all applications regarding Federal credit union matters shall be investigated and reviewed by the Regional Representative. The report and recommendations of the Regional Representative as to the application shall be transmitted to the Bureau in Washington, D.C. Notice of the action of the Director shall be promptly transmitted to the applicant together with a statement as to the basis for the action.

§ 301.6 Fee for supervision.

(a) Extent of fee. (1) Not later than January 31 of each calendar year, each Federal credit union shall pay to the Bureau, for the preceding calendar year, a supervision fee in accordance with the graduated scale set forth in subparagraph (2) of this paragraph on the basis of assets as of December 31 of such preceding year, but such fee shall in no event be less than $10.00: Provided, however, That no such annual fee shall be payable by such an organization with respect to the year in which its charter is issued or the year in which final distribution is made in liquidation of the credit union or the charter is otherwise canceled.

(2) Scale of supervision fees:

Maximum fee

Over $5,000,000‒‒‒

Provided, however, That no fee shall be payable with respect to the last fractional part of $1,000 of total assets.

(3) Definition of assets:

(i) The term, "assets," as used in this section shall mean all items properly coming within the classification of asset accounts as stated in the Accounting Manual for Federal Credit Unions, FCU544, as revised.

(ii) The term, "total assets," as used in this section shall mean the sum of all assets.

(b) Supervision fee certificate. The treasurer of each Federal credit union shall certify as to the correctness of the Supervision Fee Certificate, Form FCU511 Rev. He shall send, not later than January 31 of each year, the original

Supervision Fee Certificate and as many copies as the Bureau may request, together with a check in payment of the supervision fee stated on the Supervision Fee Certificate to be due, to the Bureau of Federal Credit Unions in Washington, D.C. Copies of the Supervision Fee Certificate form may be obtained from any Regional Office.

(c) Checks in payment of supervision fees. All checks in payment of supervision fees shall be made payable to the Bureau of Federal Credit Unions.

(d) Audit of supervision fee computation and payment. Whenever the Bureau makes a regular or special examination of a Federal credit union, the employee of the Bureau making the examination will audit the computation