Grant funds may not be used to:
- (a) Pay any annual recurring costs that are considered to be operational expenses of a facility.
- (b) Pay basic/rental fee or depreciation for the use of the recipient community's equipment.
- (c) Purchase existing systems.
- (d) Pay for items not associated with Rural Utilities Service's approved scope of work. This includes projects developed from other funding sources.
- (e) Except as provided in this part, finance any public or commercial facility.