Grant agreement means a legal instrument of financial assistance between a Federal awarding agency or pass- through entity and a non-Federal entity that, consistent with 31 U.S.C. 6302, 6304:

(1)   Is used to enter into a relationship the principal purpose of which is to transfer anything of value to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. 6101(3)); and not to acquire property or services for the Federal awarding agency or pass-through entity's direct benefit or use;

(2)   Is distinguished from a cooperative agreement in that it does not provide for substantial involvement of the Federal awarding agency in carrying out the activity contemplated by the Federal award.

(3)   Does not include an agreement that provides only: