40DConditions of grants—grants for capital projects in relation to non‑State conducted hostels

40D Conditions of grants—grants for capital projects in relation to non‑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 otherwise than by or on behalf of the State on the following conditions:

(a) that, subject to paragraph (d), the State, as soon as possible, pays to the approved authority of the hostel each amount of the financial assistance received by the State in relation to the project;

(b) that the State describes each amount paid to the approved authority as required by paragraph (a) as a payment in relation to the project made out of money provided to the State by the Commonwealth under section 40B;

(c) that, if the State does not fulfil the conditions referred to in paragraphs (a) and (b), 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;

(d) that the State does not make a payment to the approved authority under this section in relation to the year and the project unless the authority has entered into an agreement (of a kind determined by the Minister) with the Commonwealth in relation to the program year, or a number of program years including that year;

(e) that, if the approved authority does not fulfil an obligation under the agreement in relation to the grant within the time (if any) specified for fulfilment of the obligation, the Minister may delay the making of any further payment to the State in relation to the authority until the authority fulfils the obligation.