(a) From the amount appropriated pursuant to section 1836 of this title, the Secretary shall establish a program of making endowment grants to tribally controlled colleges or universities which are current recipients of assistance under section 1807 of this title or under section 3 of the Navajo Community College Act. No such college or university shall be ineligible for such a grant for a fiscal year by reason of the receipt of such a grant for a preceding fiscal year, but no such college or university shall be eligible for such a grant for a fiscal year if such college or university has been awarded a grant under section 1065 of title 20 for such fiscal year.
(b) No grant for the establishment of an endowment fund by a tribally controlled college or university shall be made unless such college or university enters into an agreement with the Secretary which—
(1) provides for the investment and maintenance of a trust fund, the corpus and earnings of which shall be invested in the same manner as funds are invested under paragraph (2) of section 1065(c) of title 20, except that for purposes of this paragraph, the term "trust fund" means a fund established by an institution of higher education or by a foundation that is exempt from taxation and is maintained for the purpose of generating income for the support of the institution, and may include real estate;
(2) provides for the deposit in such trust fund of—
(A) any Federal capital contributions made from funds appropriated under section 1836 of this title;
(B) a capital contribution by such college or university in an amount (or of a value) equal to half of the amount of each Federal capital contribution; and
(C) any earnings of the funds so deposited;
(3) provides that such funds will be deposited in such a manner as to insure the accumulation of interest thereon at a rate not less than that generally available for similar funds deposited at the banking or savings institution for the same period or periods of time;
(4) provides that, if at any time such college or university withdraws any capital contribution made by that college or university, an amount of Federal capital contribution equal to twice the amount of (or value of) such withdrawal shall be withdrawn and returned to the Secretary for reallocation to other colleges or universities;
(5) provides that no part of the net earnings of such trust fund will inure to the benefit of any private person; and
(6) includes such other provisions as may be necessary to protect the financial interest of the United States and promote the purpose of this subchapter and as are agreed to by the Secretary and the college or university, including a description of recordkeeping procedures for the expenditure of accumulated interest which will allow the Secretary to audit and monitor programs and activities conducted with such interest.
References in Text
Section 3 of the Navajo Community College Act, referred to in subsec. (a), is section 3 of Pub. L. 92–189, Dec. 15, 1971, 85 Stat. 646, which was classified to section 640b of this title and was omitted from the Code as being of special and not general application.
Amendments
1998—Subsec. (a). Pub. L. 105–244, §901(b)(6), (7), substituted "colleges or universities" for "community colleges" and substituted "such college or university" for "such college" wherever appearing.
Subsec. (b). Pub. L. 105–244, §901(b)(5), (7), in introductory provisions, substituted "controlled college or university" for "controlled community college" and "such college or university" for "such college".
Subsec. (b)(2)(B). Pub. L. 105–244, §901(b)(7), substituted "such college or university" for "such college".
Subsec. (b)(4). Pub. L. 105–244, §901(b)(7), (14), (15), substituted "such college or university" for "such college", "that college or university" for "that college", and "other colleges or universities" for "other colleges".
Subsec. (b)(6). Pub. L. 105–244, §901(b)(12), substituted "the college or university" for "the college".
1994—Subsec. (a). Pub. L. 103–382, §383(1), substituted "section 1065 of title 20" for "section 1065a of title 20".
Subsec. (b)(1). Pub. L. 103–382, §383(2)(A), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "provides for the establishment and maintenance of a trust fund at a federally insured banking or savings institution;".
Subsec. (b)(3). Pub. L. 103–382, §383(2)(B), struck out "same" before "banking or savings institution".
1990—Subsec. (b)(2)(B). Pub. L. 101–477, §1(d)(1)(A), substituted "(or of a value) equal to half of" for "equal to".
Subsec. (b)(4). Pub. L. 101–477, §1(d)(1)(B), substituted "an amount of Federal capital contribution equal to twice the amount of (or value of) such withdrawal" for "an equal amount of Federal capital contribution".
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of Title 20, Education.
Effective Date of 1990 Amendment
Pub. L. 101–477, §1(d)(2), Oct. 30, 1990, 104 Stat. 1153, provided that: "The amendments made by paragraphs (A) through (E) of subsection (a) [probably means subpars. (A) to (E) of subsec. (d)(1), amending this section and sections 1834 and 1835 of this title] shall take effect October 1, 1991."
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