Section 110.37 - Procedure for disbursal of funds to an alternate recipient(a) If the Secretary withholds funds from a recipient under these regulations, the Secretary may disburse the funds withheld directly to an alternate recipient: any public or nonprofit private organization or agency, or State or political subdivision of the State.(b) The Secretary requires any alternate recipient to demonstrate- (1) The ability to comply with the Act and these regulations; and(2) The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.58 FR 40197, July 27, 1993, as amended at 65 FR 68057 , Nov. 13, 2000 Authority: 42 U.S.C. 6104