20 U.S.C. § 4425 : US Code - Section 4425: Endowment programs

Search 20 U.S.C. § 4425 : US Code - Section 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the value of the Federal contribution shall be withdrawn from such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(1)(B)(ii) may be periodically withdrawn and used, at the direction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.