Section 225.21 - What are some examples of impermissible uses of reserve account funds?(a) Grantees must not use reserve account funds to-(1) Directly pay for a charter school's construction, renovation, repair, or acquisition; or(2) Provide a down payment on facilities in order to secure loans for charter schools. A grantee may, however, use funds to guarantee a loan for the portion of the loan that would otherwise have to be funded with a down payment.(b) In the event of a default of payment to lenders or contractors by a charter school whose loan or lease is guaranteed by reserve account funds, a grantee may use these funds to cover defaulted payments that are referenced under paragraph (a)(1) of this section.70 FR 15003, Mar. 24, 2005, as amended at 84 FR 25998, June 5, 2019