(1) The Board shall approve grants in accordance with this OAR Chapter 695, Division 48. The Director is delegated all necessary authority to ensure that funding conditions required by the Board are fully satisfied by the Grantee.
(2) Other than provided for in OAR 695-048-0160(3), conditionally approved grant funds shall be encumbered for disbursement only after all conditions are fulfilled. The encumbered funds may be made available for other uses by OWEB if all conditions required by the Board are not satisfied within 18 months of the conditional Board approval, unless a time extension is approved by the Board.