 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
                     Part C--Public Charter Schools
 
   subpart 2--credit enhancement initiatives to assist charter school 
           facility acquisition, construction, and renovation
 
Sec. 8071a. Grants to eligible entities


(a) In general

    The Secretary shall use 100 percent of the amount available to carry 
out this subpart to award not less than three grants to eligible 
entities having applications approved under this subpart to demonstrate 
innovative methods of assisting charter schools to address the cost of 
acquiring, constructing, and renovating facilities by enhancing the 
availability of loans or bond financing.

(b) Grantee selection

    The Secretary shall evaluate each application submitted, and shall 
make a determination of which are sufficient to merit approval and which 
are not. The Secretary shall award at least one grant to an eligible 
entity described in section 8071i(2)(A) of this title, at least one 
grant to an eligible entity described in section 8071i(2)(B) of this 
title, and at least one grant to an eligible entity described in section 
8071i(2)(C) of this title, if applications are submitted that permit the 
Secretary to do so without approving an application that is not of 
sufficient quality to merit approval.

(c) Grant characteristics

    Grants under this subpart shall be of a sufficient size, scope, and 
quality so as to ensure an effective demonstration of an innovative 
means of enhancing credit for the financing of charter school 
acquisition, construction, or renovation.

(d) Special rule

    In the event the Secretary determines that the funds available are 
insufficient to permit the Secretary to award not less than three grants 
in accordance with subsections (a) through (c) of this section, such 
three-grant minimum and the second sentence of subsection (b) of this 
section shall not apply, and the Secretary may determine the appropriate 
number of grants to be awarded in accordance with subsection (c) of this 
section.

(Pub. L. 89-10, title X, Sec. 10322, as added Pub. L. 106-554, 
Sec. 1(a)(1) [title III, Sec. 322(a)(2)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-57.)
