; or (B) make subgrants to gun dealers in such State or unit of local government to conduct gun buyback programs, and distribute the smart prepaid cards such State or unit of local government receives to gun dealers receiving subgrants. (2) Gun and ammunition recycling program Use not more than 10 percent of such funds to recycle the guns and ammunition that such State or unit of local government collects or receives from gun dealers. (3) Administrative costs Use not more than 15 percent of such funds for the administrative costs of carrying out the grant program under this title, including the criminal database checks under subsection (f). (b) Gun dealers (1) In general A gun dealer receiving a grant or subgrant under this title shall use such funds to conduct a gun buyback program. (2) Smart prepaid card amounts (A) In order to purchase a gun through a gun buyback program, a gun dealer shall load onto a smart prepaid card 125 percent of the market value of the gun that the individual wishes to dispose of (as determined by the Director under section 104(b)). (B) A gun dealer may increase the purchase price of a gun and load an amount onto a smart prepaid card that is greater than 125 percent of the market value of the gun if the gun dealer determines that the gun has been altered in a way that would increase the market value of the gun (such as an altered grip, or the addition of a scope). (3) Guns received (A) In the case of a gun dealer receiving a grant under this title, the gun dealer shall deliver a gun or ammunition the dealer receives under the gun buyback program to the closest office of the Bureau of Alcohol, Tobacco, Firearms and Explosives not later than 60 days after receiving such gun. (B) In the case of a gun dealer receiving a subgrant under this title, the gun dealer shall deliver a gun or ammunition the dealer receives under the gun buyback program to the State or unit of local government from which it receives the subgrant not later than 60 days after receiving such gun. (c) Ammunition