> For the complete documentation index, see [llms.txt](https://title5.caqualityearlylearning.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://title5.caqualityearlylearning.org/general-requirements/prohibition-against-loans-and-advances.md).

# 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.


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