§ 130aa-3. — Withdrawals and expenditures.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC130aa-3]
TITLE 20--EDUCATION
CHAPTER 8--HOWARD UNIVERSITY
SUBCHAPTER II--ENDOWMENT
Sec. 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 endowment fund income
or corpus may be used for any type of support of the executive officers
of the University or for any commercial enterprise or endeavor entered
into after January 1, 1981. Except as provided in subsection (b) of this
section, the University shall not, in the aggregate, withdraw or expend
more than 50 per centum of the total aggregate endowment fund income
earned prior to the time of withdrawal or expenditure.
(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withdrawn; endowment fund corpus; income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per centum of the amount withdrawn or expended (representing the Federal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, Sec. 205, Oct. 17, 1984, 98 Stat. 2246.)
Section Referred to in Other Sections
This section is referred to in section 130aa-4 of this title.
