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an asset if the asset is fully depreciated. (i) A grantee shall segregate any money received from the department as reimbursement for depreciation or use costs in a reserve fund that may be used only for replacement of capital assets used for residential child care. The assets of the fund may be invested only in investments of the kind described in AS 39.35.110. Replacement assets acquired with money from the fund must be dedicated to a public purpose related to residential child care for a period of 20 years after the date of their acquisition. Upon cessation of the grantee’s activities as a residential child care facility, or dissolution, or bankruptcy of the grantee, or upon any attempt to divert money from the fund to other purposes, or to invest the fund in investments not permitted in this subsection, title to the fund must revert to the State of Alaska. (j) For the purpose of this section

(1) “basis” means the lower of the purchase price or the fair market value at the time of acquisition or, for assets that were donated, the fair market value at the time of acquisition; and

(2) “accumulated depreciation” means the fractional part of the basis of an asset that is proportionately equal to the part of the useful life of an asset that has already passed. (Eff. 1/13/85, Register 93) Statutory Authority: Authority: AS 47.05.010 AS 47.40.011 AS 47.40.041 7 AAC 53.950. Payments during absence. Repealed 1/13/85. Publisher’s note: When repealed, this section was numbered 7 AAC 50.950. 7 AAC 53.951. Related organizations and related parties. (a) The department will not reimburse a grantee for interest or rent paid to a related organization or related party. (b) For the purposes of a residential child care facility grant, the department will treat