20 U.S.C. § 130aa — Definitions

Page 91 TITLE 20—EDUCATION § 130aa–3 § 130a. Financial and program audit by Secretary Funds appropriated in this Act or subsequent Departments of Labor, Health and Human Serv- ices, and Education, and Related Agencies Ap- propriations Acts to Howard University shall be subject to financial and program audit by the Secretary of Education and the Secretary may withhold all or any portion of these appropria- tions if he determines that an institution has not cooperated fully in the conduct of such au- dits. (Pub. L. 102–394, title III, § 301, Oct. 6, 1992, 106 Stat. 1819.) Editorial Notes CODIFICATION Section is from the Departments of Labor, Health and Human Services, and Education, and Related Agen- cies Appropriations Act, 1993, and contained additional provisions relating to the American Printing House for the Blind, Gallaudet University, and the National Technical Institute for the Deaf, which are set out as sections 106a and 4363 of this title, respectively. SUBCHAPTER II—ENDOWMENT § 130aa. Definitions For purposes of this subchapter— (1) the term ‘‘endowment fund’’ means a fund, or a tax exempt foundation, established and maintained by Howard University for the purpose of generating income for its support, but which shall not include real estate; (2) the term ‘‘endowment fund corpus’’ means an amount equal to the grants awarded under this subchapter plus an amount equal to such grants provided by Howard University; (3) the term ‘‘endowment fund income’’ means an amount equal to the total value of the endowment fund established under this subchapter minus the endowment fund corpus; (4) the term ‘‘Secretary’’ means the Sec- retary of Education; and (5) the term ‘‘University’’ means the Howard University established by the Act of March 2, 1867. (Pub. L. 98–480, title II, § 202, Oct. 17, 1984, 98 Stat. 2245.) Editorial Notes REFERENCES IN TEXT Act of March 2, 1867, referred to in par. (5), is act Mar. 2, 1867, ch. 162, 14 Stat. 438. Section 8 of this Act is clas- sified to section 123 of this title. For complete classi- fication of this Act to the Code, see Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 98–480, title II, § 209, Oct. 17, 1984, 98 Stat. 2247, provided that: ‘‘This title [see Short Title note below] shall take effect on October 1, 1984.’’ SHORT TITLE Pub. L. 98–480, title II, § 201, Oct. 17, 1984, 98 Stat. 2245, provided that: ‘‘This title [enacting this subchapter, amending section 123 of this title, and enacting provi- sions set out as a note above] may be cited as the ‘How- ard University Endowment Act’.’’ § 130aa–1. Program authorized (a) The Secretary is authorized to establish an endowment program, in accordance with the provisions of this subchapter, for the purpose of establishing or increasing endowment funds, providing additional incentives to promote fund- raising activities, and encouraging independence and self-sufficiency at the University. (b)(1) From the funds appropriated pursuant to this subchapter for endowments in any fiscal year for the University, the Secretary is author- ized to make grants to Howard University. The Secretary may enter into agreements with the University and include in any agreement made pursuant to this subchapter such provisions deemed necessary by the Secretary to assure that the purposes of this subchapter will be achieved. (2) The University may receive a grant under this section only if it has deposited in the en- dowment fund established under this subchapter an amount equal to such grant and has ade- quately assured the Secretary that it will ad- minister the endowment fund in accordance with the requirements of this subchapter. The source of funds for this institutional match shall not include Federal funds or funds derived from an existing endowment fund. (3) The period of any grant under this section shall not exceed twenty years, and during such period the University shall not withdraw or ex- pend any of its endowment fund corpus. Upon the expiration of any grant period, the Univer- sity may use the endowment fund corpus plus any endowment fund income for any educational purpose. (Pub. L. 98–480, title II, § 203, Oct. 17, 1984, 98 Stat. 2245.) § 130aa–2. Investments (a) The University shall invest its endowment fund corpus and endowment fund income in those low-risk instruments and securities in which a regulated insurance company may in- vest under the law of the District of Columbia, such as federally insured bank savings account or comparable interest bearing account, certifi- cate of deposit, money market fund, mutual fund, or obligations of the United States. (b) The University, in investing its endowment fund corpus and income, shall exercise the judg- ment and care, under circumstances then pre- vailing, which a person of prudence, discretion, and intelligence would exercise in the manage- ment of his own business affairs. (Pub. L. 98–480, title II, § 204, Oct. 17, 1984, 98 Stat. 2246.) § 130aa–3. Withdrawals and expenditures (a) Defrayment of expenses; restrictions on use of income or corpus; limits on withdrawals or expenditures The University may withdraw and expend its endowment fund income to defray any expenses necessary to its operation, including expenses of operations and maintenance, administration, academic and support personnel, construction and renovation, community and student services programs, technical assistance, and research. No