20 USC 130aa-3 - Withdrawals and expenditures

U.S Code last checked for updates: Nov 22, 2024

§ 130aa–3.

Withdrawals and expenditures

(a)

Defrayment of expenses; restrictions on use of income or corpus; limits on withdrawals or expenditures

(b)

Authority of Secretary; withdrawal or expenditure beyond limits; circumstances demonstrating necessity

The Secretary is authorized to permit the University to withdraw or expend more than 50 per centum of its total aggregate endowment income whenever the University demonstrates such withdrawal or expenditure is necessary because of—

(A)

a financial emergency, such as a pending insolvency or temporary liquidity problem;

(B)

a life-threatening situation occasioned by a natural disaster or arson; or

(C)

another unusual occurrence or exigent circumstance.

(c)

Repayment of Federal share of amounts improperly expended or withdrawn; endowment fund corpus; income

(1)

If the University withdraws or expends more than the endowment fund income authorized by this section, the University shall repay the Secretary an amount equal to 50 per centum of the amount improperly expended (representing the Federal share thereof).

(2)

The University shall not withdraw or expend any endowment fund corpus. If the University withdraws or expends any endowment fund corpus, the University shall repay the Secretary an amount equal to 50 per centum of the amount withdrawn or expended (representing the Federal share thereof) plus any income earned thereon.

(Pub. L. 98–480, title II, § 205, Oct. 17, 1984, 98 Stat. 2246.)

cite as: 20 USC 130aa-3