§ 304. — Investment of proceeds of sale of land or scrip.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 7USC304]
TITLE 7--AGRICULTURE
CHAPTER 13--AGRICULTURAL AND MECHANICAL COLLEGES
SUBCHAPTER I--COLLEGE-AID LAND APPROPRIATION
Sec. 304. Investment of proceeds of sale of land or scrip
All moneys derived from the sale of lands as provided in section 302
of this title by the States to which lands are apportioned and from the
sales of land scrip provided for in said section shall be invested in
bonds of the United States or of the States or some other safe bonds; or
the same may be invested by the States having no State bonds, in any
manner after the legislatures of such States shall have assented thereto
and engaged that such funds shall yield a fair and reasonable rate of
return, to be fixed by the State legislatures, and that the principal
thereof shall forever remain unimpaired: Provided, That the moneys so
invested or loaned shall constitute a perpetual fund, the capital of
which shall remain forever undiminished (except so far as may be
provided in section 305 of this title), and the interest of which shall
be inviolably appropriated, by each State which may take and claim the
benefit of this subchapter, to the endowment, support, and maintenance
of at least one college where the leading object shall be, without
excluding other scientific and classical studies and including military
tactics, to teach such branches of learning as are related to
agriculture and the mechanic arts, in such manner as the legislatures of
the States may respectively prescribe, in order to promote the liberal
and practical education of the industrial classes in the several
pursuits and professions in life.
(July 2, 1862, ch. 130, Sec. 4, 12 Stat. 504; Mar. 3, 1883, ch. 102, 22
Stat. 484; Apr. 13, 1926, ch. 130, 44 Stat. 247.)
Amendments
1926--Act Apr. 13, 1926, substituted ``bonds'' for ``stocks'' and
``a fair and reasonable rate of return, to be fixed by the State
Legislatures'' for ``not less than 5 per centum upon the amount so
invested'', before proviso.
1883--Act Mar. 3, 1883, inserted ``or the same may be invested by
the States having no State stocks, in any other manner after the
legislatures of such States shall have assented thereto, and engaged
that such funds shall'' after ``other safe stocks'' and substituted
``yield'' for ``yielding'', ``principal'' for ``capital'' and
``unimpaired'' for ``undiminished''.
Section Referred to in Other Sections
This section is referred to in section 305 of this title.
