The Secretary may waive the matching funds requirement for fiscal year 2000 for an eligible institution of a State if the Secretary determines that, based on the report received under Sec. 3419.3, the State will be unlikely to satisfy the matching requirement. The criteria to waive the match in fiscal year 2000 may include:
(a) Natural disaster, flood, fire, tornado, hurricane, or drought;
(b) State and/or institution facing a financial crisis; or
(c) Demonstration of a good faith effort to obtain funds. Approval or disapproval of the request for a waiver will be based on the report submitted under Sec. 3419.3. The Secretary may not waive the matching requirement for any fiscal year other than fiscal year 2000.