1. (a) A recipient shall begin to expend funds within 6 months of the effective date of a grant agreement or the effective date of the original loan agreement or initial loan documents, as applicable, unless otherwise specified in the GA, OLA, or ILD, as applicable.
2. (b) If a recipient fails to comply with (a), above, the department shall request the recipient to show cause why the loan or grant should not be cancelled.

3. (c) The department’s request shall:

   1. (1) Be in writing; and
   2. (2) Specify a date by which the recipient must respond in writing to the request.

4. (d) If the recipient shows that the delay in expending the funds was based on an excusable delay, the department shall:

   1. (1) Not cancel the grant or loan, as applicable; and
   2. (2) Notify the commission of such determination.

Source. #12903, eff 10-23-19