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Grants: Money and Control
Author(s) -
Fiveash John L.
Publication year - 2015
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.5942/jawwa.2015.107.0093
Subject(s) - loan , covenant , non conforming loan , control (management) , participation loan , business , non performing loan , cross collateralization , bridge loan , asset (computer security) , finance , actuarial science , economics , law , political science , management , computer security , computer science
A grant is a gift with strings attached. When one takes out a loan, there are terms to the loan, called loan covenants. They are assurances to the lender that the borrower will conduct their affairs in a certain way. Sometimes, loan covenants are worded exactly like grant assurances. Both loans and grants are funding sources; the difference is that loan covenants go away when the loan is paid, whereas grant assurances ‐ the “strings” ‐ rarely go away. Grants are designed that way. A grant trades money for control ‐ control of a project, an asset, or the way a grant recipient conducts some of its future affairs.