40C Conditions of grants—grants for capital projects in relation to State conducted hostels
Financial assistance is granted to a State under section 40B in relation to a program year and a capital project in relation to a rural student hostel that is, or will be, conducted by or on behalf of the State:
(a) on the conditions set out in the agreement concerned mentioned in subsection 40B(2); and
(b) on the condition that, if the State does not fulfil a condition under the agreement in relation to the grant within the time (if any) specified for fulfilment of the condition:
(i) the State will, if the Minister so determines, repay to the Commonwealth such amount (not exceeding the total amount of financial assistance paid to the State under section 40B in relation to the program year and the project) as the Minister specifies in the determination; and
(ii) the Minister may delay the making of any further payment to the State under section 40B until the State fulfils the condition.