# Prohibition Against Loans and Advances (a) Contractors shall not loan contract funds to individuals, corporations, organizations, public agencies or private agencies. (b) Contractors shall not advance unearned salary to employees. (c) Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for: (1) Subcontractors providing direct child care and development services; and (2) Subcontractors with subcontracts exempt from the provisions of Article 2 of this Chapter as specified in Section 18026 of this Division. > NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://title5.caqualityearlylearning.org/general-requirements/prohibition-against-loans-and-advances.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.