Under the final rule, published on November 7, 2000, recipients will be permitted to carry over fund balances of 10% or less; will be able to seek LSC approval for carryover balances of between 10% and 25%; and will be generally prohibited from retaining fund balances of over 25%, except in three very limited and especially compelling circumstances.
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There are situations in which recipients will not be permitted to carry over balances of 7%.
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There are four scenarios which could nullify regulation of fund balances by recipients.