(a) The applicable provisions of Sec. 1942.5 of subpart A of part 1942 of this chapter relating to preparation of loan dockets will be followed in preparing grant dockets.
(b) The State Director or the State Director's designated representative will prepare a Letter of Conditions outlining the conditions under which the grant will be made. It will include those matters necessary to assure that the proposed development is completed in accordance with approved plans and specifications, that grant funds are expended for authorized purposes, and that the terms of the Scope of Work and requirements as prescribed in the Grant Agreement and Departmental Regulations, as currently codified in 2 CFR parts 400, 415, 417, 418, and 421 are complied with. The Letter of Conditions will be addressed to the applicant, signed by the State Director or other designated Rural Development representative, and mailed or handed to appropriate applicant officials. Each Letter of Conditions will contain the following paragraphs.
``This letter establishes conditions which must be understood and agreed to by you before further consideration may be given to the application.''
``This letter is not to be considered as grant approval nor as a representation as to the availability of funds. The docket may be completed on the basis of a grant not to exceed $_________.''
``Please complete and return the attached Form RD 1942-46, `Letter of Intent to Meet Conditions,' if you desire further consideration be given your application.''
Form RD 400-1, ``Equal Opportunity Agreement,'' if applicable.
Form RD 400-4, ``Assurance Agreement (Under Title VI, Civil Rights Act of 1966).'' [50 FR 7296, Feb. 22, 1985, as amended at 53 FR 30249, Aug. 11, 1988; 57 FR 33101, July 27, 1992; 79 FR 76009, Dec. 19, 2014]