(a) A grant made under this subpart will not be provided or used:
(1) To cover the costs of acquiring, installing or constructing telecommunications transmission facilities;
(2) To pay for medical equipment not having telemedicine as its essential function;
(3) To pay salaries, wages, or employee benefits to medical or educational personnel;
(4) To pay for the salaries or administrative expenses of the applicant or the project;
(5) To purchase equipment that will be owned by the local exchange carrier or another telecommunications service provider unless that service provider is the applicant.
(6) To duplicate facilities providing distance learning or telemedicine services in place or to reimburse the applicant or others for costs incurred prior to RUS' receipt of the completed application;
(7) To pay costs of preparing the application package for financial assistance under this program;
(8) For projects whose sole objective is to provide links between teachers and students or between medical professionals who are located at the same facility;
(9) For site development and the destruction or alteration of buildings;
(10) For the purchase of land, buildings, or building construction;
(11) For projects located in areas covered by the Coastal Barrier Resources Act (16 U.S.C. 3501 et seq.);
(12) For any purpose that the Administrator has not specifically approved;
(13) Except for leases provided for in Sec. 1703.121, to pay the cost of recurring or operating expenses for the project; or
(14) For any other purposes not specifically contained in Sec. 1703.121.
(b) Except as otherwise provided in Sec. 1703.112, grants shall not be used to finance a project, in part, when the success of the project is dependent upon the receipt of additional financial assistance under this subpart or is dependent upon the receipt of other financial assistance that is not assured. [64 FR 14360, Mar. 25, 1999; 64 FR 25422, May 12, 1999, as amended at 64 FR 25423, May 12, 1999; 67 FR 3040, Mar. 11, 2002]