Section 1156.20 - Alternate funds disbursal procedure(a) When the endowment withholds funds from a recipient under the regulations in this part, the Chairperson may disburse the withheld funds directly to an alternate recipient otherwise eligible for Endowment support: any public or nonprofit private organization or agency, or State or political subdivision of the State.(b) The Chairperson will require any alternate recipient to demonstrate:(1) The ability to comply with the regulations in this part; and(2) The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.63 FR 6876, Feb. 11, 1998, as amended at 68 FR 51385 , Aug. 26, 2003