PUBLIC LAW 98-95—SEPT. 26, 1983 97 STAT. 709 " (4)(A) An institution of higher education is eligible to receive a Eligibility. grant under this section if it is an eligible institution as described in section 331(a)(l). 20 USC 1064. "(B) No institution shall be ineligible for an endowment grant for a fiscal year by reason of the previous receipt of such a grant, but no institution shall be eligible to receive such a grant for more than two fiscal years out of any period of five consecutive fiscal years. "(5) An endowment grant under this section to an eligible institu- tion year shall— "(A) not be less than $50,000 for any fiscal year; and "(B) not be more than (i) $250,000 for fiscal year 1984; or (ii) $500,000 for fiscal year 1985 or any succeeding fiscal year. "(6)(A) An eligible institution may designate a foundation, which was established for the purpose of raising money for the institution, as the recipient of the grant awarded under this section. "(B) The Secretary shall not award a grant to a foundation on behalf of an institution unless— " (i) the institution assures the Secretary that the foundation is legally authorized to receive the endowment fund corpus and is legally authorized to administer the fund in accordance with this section and any implementing regulations; "(ii) the foundation agrees to administer the fund in accord- ance with the requirements of this section and any implement- ing regulation; and "(iii) the institution agrees to be liable for any violation by the foundation of the provisions of this section and any implement- ing regulations, including any monetary liability that may arise as a result of such violation. "(c)(1) An institution awarded a grant under this section shall enter into an agreement with the Secretary containing satisfactory assurances that it will (A) immediately comply with the matching requirements of subsection (b)(2), (B) establish an endowment fund independent of any other such fund of the institution, (C) invest the endowment fund corpus, and (D) meet the other requirements of this section. "(2)(A) An institution shall invest the endowment fund corpus and investment endowment fund income in low-risk securities in which a regulated requirements. insurance company may invest under the law of the State in which the institution is located such as a federally insured bank savings account or comparable interest bearing account, certificate of depos- it, money market fund, mutual fund, or obligations of the United States. "(B) The institution, in investing the endowment fund established under this section, shall exercise the judgment and care, under the circumstances then prevailing, which a person of prudence, discre- tion, and intelligence would exercise in the management of his own affairs. "(3)(A) An institution may withdraw and expend the endowment fund income to defray any expenses necessary to the operation of such college, including expenses of operations and medntenance, administration, academic and support personnel, construction and renovation, community and student services programs, and techni- cal assistance. "(B)(i) Except as provided in clause (ii), an institution may not spend more than 50 per centum of the total aggregate endowment fund income earned prior to the time of expenditure. Agreement with Secretary.
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