(1) Requests for federal funds made after indebtedness has been incurred by the applicant agency will be denied.

(2) Federal funds are not assured until an award letter signed by a representative of the board has been received by the applicant agency. The signed award letter, returned to the board, constitutes a binding contract between the applicant agency and the board.

(3) Applications which do not comply with the above statements shall be returned to the applicant agency for corrections or amendment prior to presentation to the board.