§ 4425. — Endowment programs.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC4425]
TITLE 20--EDUCATION
CHAPTER 56--AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN CULTURE
AND ART DEVELOPMENT
SUBCHAPTER I--AMERICAN INDIANS AND ALASKA NATIVES
Sec. 4425. Endowment programs
(a) Program enhancement endowment
(1)(A) From the total amount appropriated for this subsection
pursuant to section 4451(a) of this title, funds may be deposited into a
trust fund maintained by the Institute at a federally insured banking or
savings institution.
(B) The President of the Institute shall provide--
(i) for the deposit into the trust fund referred to in
subparagraph (A)--
(I) of a capital contribution by the Institute in an amount
equal to the amount of each Federal contribution; and
(II) any earnings on the funds deposited under this
paragraph; or
(ii) for the reservation for the sole use of the Institute of
any noncash, in-kind contributions of real or personal property,
which property may at any time be converted to cash, which shall be
deposited as a capital contribution into the trust fund referred to
in subparagraph (A).
(C) If at any time the Institute withdraws any capital contribution
(as described in subparagraph (B)(i)) made by the Institute to the trust
fund referred to in subparagraph (A) or puts any property (as described
in subparagraph (B)(ii)) to a use which is not for the sole benefit of
the Institute, an amount equal to the value of the Federal contribution
shall be withdrawn from such trust fund and returned to the Treasury as
miscellaneous receipts.
(2) Interest deposited into the trust fund pursuant to paragraph
(1)(B)(ii) may be periodically withdrawn and used, at the direction of
the Board or its designee, to defray any expense associated with the
operation of the Institute, including the expense of operations and
maintenance, administration, academic and support personnel, community
and student services programs, and technical assistance.
(3) For the purpose of complying with the contribution requirement
of paragraph (1)(B), the Institute may use funds or in-kind
contributions of real or personal property fairly valued which are made
available from any private or tribal source, including interest earned
by the funds invested under this subsection. In-kind contributions shall
be other than fully depreciable property or property which is designated
for addition to the permanent collection of the Museum and shall be
valued according to the procedures established for such purpose by the
Secretary of the Treasury. For purposes of this paragraph, all
contributions, including in-kind and real estate, which are on-hand as
of November 29, 1990 and which have been received after June 2, 1988,
but which have not been included in computations under this provision
shall be eligible for matching with Federal funds appropriated in any
fiscal year. All funds transferred to the Institute by the Secretary of
the Treasury after June 2, 1988, shall be deemed to have been properly
transferred as of July 23, 1992.
(4) Amounts appropriated under section 4451(a) of this title for use
under this subsection shall be paid by the Secretary of the Treasury to
the Institute as a Federal capital contribution equal to the amount of
funds or the value of the in-kind contributions which the Institute
demonstrates have been placed within the control of, or irrevocably
committed to the use of, the Institute as a capital contribution of the
Institute in accordance with this subsection.
(b) Capital improvement endowment
(1) In addition to the trust fund established under subsection (a)
of this section, funds may be deposited into a trust fund maintained by
the Institute at a federally insured banking or savings institution from
the amount reserved for this subsection pursuant to section 4451(a) of
this title for the purpose of establishing a separate special endowment
for capital improvement (hereafter in this subsection referred to as the
``capital endowment fund'') to pay expenses associated with site
selection and preparation, site planning and architectural design and
planning, new construction, materials and equipment procurement,
renovation, alteration, repair, and other building and expansion costs
of the Institute.
(2) The President of the Institute shall provide for the deposit
into the capital endowment fund of a capital contribution by the
Institute in an amount equal to the amount of each Federal contribution
and any earnings on amounts in the capital endowment fund.
(3) Funds deposited by the Institute as a match for Federal
contributions under paragraph (5) shall remain in the capital endowment
fund for a period of not less than two years. If at any time the
Institute withdraws any capital contribution to the capital endowment
fund before the funds have been deposited for this two-year period, an
equal amount of the Federal contribution shall be withdrawn from the
capital endowment fund and returned to the Treasury as miscellaneous
receipts. At the end of the two-year period, the entire principal and
interest of the funds deposited for this period, including the Federal
matching portion, shall accrue, without reservation, to the Institute
and may be withdrawn, in whole or in part, to defray expenses associated
with capital acquisition and improvement of the Institute referred to in
paragraph (1).
(4) For the purpose of complying with the contribution requirement
of paragraph (2), the Institute may use funds which are available from
any private, non-Federal governmental, or tribal source.
(5) Subject to paragraph (3), amounts appropriated under section
4451(a) of this title for use under this subsection shall be paid by the
Secretary of the Treasury to the Institute as a Federal capital
contribution equal to the amount which the Institute demonstrates has
been placed within the control of, or irrevocably committed to the use
of, the Institute and is available for deposit as a capital contribution
of the Institute in accordance with this subsection.
(6) For the purpose of complying with the contribution requirement
in this subsection, the Institute may use funds or in-kind contributions
of real or personal property. For the purposes of this paragraph, all
contributions, in-kind and real estate, which are held by the Institute
beginning on November 29, 1990, and which were received after June 2,
1988, but which have not been included in their entirety in computations
under this section shall be eligible for matching Federal funds
appropriated in any year.
(c) General administrative provisions
(1) Funds in the trust funds described in subsections (a) and (b) of
this section shall be invested under the same conditions and limitations
as funds are invested under section 1065(c)(2) of this title and the
regulations implementing such section (as such regulations were in
effect at the time the funds are invested).
(2) No part of the net earnings of the trust funds established under
this section shall inure to the benefit of any private person.
(3) Any amounts deposited in a trust fund authorized under
subsection (a) of this section may be used to secure loans procured for
the purposes of constructing or improving Institute facilities.
(4) The President of the Institute shall provide for such other
provisions governing the trust funds established under this section as
may be necessary to protect the financial interest of the United States
and to promote the purpose of this chapter as agreed to by the Secretary
of the Treasury and the Board or its designee, including recordkeeping
procedures for the investment of funds received under the trust fund
established under subsection (b) of this section and such other
recordkeeping procedures for the expenditure of accumulated interest for
the trust fund under subsection (a) of this section as will allow the
Secretary of the Treasury to audit and monitor activities under this
section.
(Pub. L. 99-498, title XV, Sec. 1518, Oct. 17, 1986, 100 Stat. 1609;
Pub. L. 100-297, title V, Sec. 5406(b), Apr. 28, 1988, 102 Stat. 417;
Pub. L. 101-644, title V, Sec. 505, Nov. 29, 1990, 104 Stat. 4669; Pub.
L. 102-325, title XIII, Sec. 1331(j), July 23, 1992, 106 Stat. 808; Pub.
L. 103-382, title III, Sec. 386(b), Oct. 20, 1994, 108 Stat. 4020.)
Amendments
1994--Subsec. (b)(6). Pub. L. 103-382, Sec. 386(b)(1), added par.
(6).
Subsec. (c)(1). Pub. L. 103-382, Sec. 386(b)(2), amended par. (1)
generally. Prior to amendment, par. (1) read as follows: ``Funds in the
trust funds described in subsections (a) and (b) of this section shall
be invested at a rate not less than that generally available for similar
funds deposited at the same banking institution for the same period or
periods of time.''
1992--Subsec. (a)(3). Pub. L. 102-325, Sec. 1331(j)(1)(A),
substituted ``November 29, 1990'' for ``the date of enactment of this
Act''.
Pub. L. 102-325, Sec. 1331(j)(1)(B), inserted at end ``All funds
transferred to the Institute by the Secretary of the Treasury after June
2, 1988, shall be deemed to have been properly transferred as of July
23, 1992.''
Subsec. (b)(4). Pub. L. 102-325, Sec. 1331(j)(2), inserted ``, non-
Federal governmental,'' after ``any private''.
Subsec. (c)(3), (4). Pub. L. 102-325, Sec. 1331(j)(3), added par.
(3) and redesignated former par. (3) as (4).
1990--Pub. L. 101-644 amended section generally, substituting
present provisions consisting of subsecs. (a) to (c) for former text
which provided: in subsec. (a), establishment of program; in subsec.
(b), use of funds; in subsec. (c), compliance with matching requirement;
and in subsec. (d), payment of Federal contribution.
1988--Subsec. (a)(1). Pub. L. 100-297, Sec. 5406(b)(1), substituted
``From amounts appropriated under section 4451(a) of this title, not
more than $500,000'' for ``From the amount appropriated pursuant to
section 4441(a) of this title, the Secretary shall make available to the
Institute not more than $500,000 which''.
Subsec. (d). Pub. L. 100-297, Sec. 5406(b)(2), in subsec. heading
substituted ``Payment of Federal contribution'' for ``Allocation of
funds'', and in text substituted ``Amounts appropriated under section
4451(a) of this title for use under this section shall be paid by the
Secretary of the Treasury to the Institute as'' for ``From the amount
appropriated pursuant to section 4441(a) of this title, the Secretary
shall allocate to the Institute an amount for''.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-325 effective Oct. 1, 1992, see section 2
of Pub. L. 102-325, set out as a note under section 1001 of this title.
Effective Date of 1988 Amendment
For effective date and applicability of amendment by Pub. L. 100-
297, see section 6303 of Pub. L. 100-297, set out as a note under
section 1071 of this title.
Section Referred to in Other Sections
This section is referred to in section 4451 of this title.
