Section 91.49 - Alternate funds disbursal procedure(a) When HHS withholds funds from a recipient under these regulations, the Secretary may disburse the withheld funds directly to an alternate recipient: any public or non-profit private organization or agency, or State or political subdivision of the State.(b) The Secretary will require any alternate recipient to demonstrate: (1) The ability to comply with these regulations; and(2) The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.47 FR 57858, Dec. 28, 1982, as amended at 70 FR 24322 , May 9, 2005