I. – For the application of III of article L. 2334-40, the representative of the State in the department will enter into an agreement with the municipality or public establishment for inter-municipal cooperation, specifying the purpose and amount of expenditure eligible for subsidy, the rate of subsidy applied and the total amount of subsidies granted. The agreement may also include a provisional timetable for the completion of the projects. Funding from the urban policy grant is allocated with a view to carrying out investment projects or operating expenditure corresponding to the objectives set out in the urban contract.
II. – When the city policy grant contributes to the financing of investment projects, the provisions of articles R. 2334-22 to R. 2334-25 and articles R. 2334-28 to R. 2334-31 shall apply to it. Similarly, it may not have the effect of increasing the amount of direct public aid above the ceiling stipulated in the second paragraph of article R. 2334-27.
III. – When the city policy grant contributes to the financing of actions in the economic and social field, the grant application is submitted by the mayor or the president of the competent public inter-communal cooperation establishment.