25 U.S.C. § 2506 : US Code - Section 2506: Payment of grants; investment of funds

Search 25 U.S.C. § 2506 : US Code - Section 2506: Payment of grants; investment of funds

(a) Payments
(1) In general
Except as otherwise provided in this subsection, the Secretary
shall make payments to grantees under this chapter in two
payments, of which -
(A) the first payment shall be made not later than July 1 of
each year in an amount equal to 80 percent of the amount which
the grantee was entitled to receive during the preceding
academic year; and
(B) the second payment, consisting of the remainder to which
the grantee is entitled for the academic year, shall be made
not later than December 1 of each year.
(2) Excess funding
In a case in which the amount provided to a grant recipient
under paragraph (1)(A) is in excess of the amount that the
recipient is entitled to receive for the academic year involved,
the recipient shall return to the Secretary such excess amount
not later than 30 days after the final determination that the
school was overpaid pursuant to this section. The amount returned
to the Secretary under this paragraph shall be distributed
equally to all schools in the system.
(3) Newly funded schools
For any school for which no payment under this chapter was made
from Bureau funds in the preceding academic year, full payment of
the amount computed for the first academic year of eligibility
under this chapter shall be made not later than December 1 of the
academic year.
(4) Late funding
With regard to funds for grantees that become available for
obligation on October 1 of the fiscal year for which such funds
are appropriated, the Secretary shall make payments to grantees
not later than December 1 of the fiscal year.
(5) Applicability of certain title 31 provisions
The provisions of chapter 39 of title 31 shall apply to the
payments required to be made by paragraphs (1), (3), and (4).
(6) Restrictions
Paragraphs (1), (3), and (4) shall be subject to any
restriction on amounts of payments under this chapter that are
imposed by a continuing resolution or other Act appropriating the
funds involved.
(b) Investment of funds
(1) Treatment of interest and investment income
Notwithstanding any other provision of law, any interest or
investment income that accrues to any funds provided under this
chapter after such funds are paid to the Indian tribe or tribal
organization and before such funds are expended for the purpose
for which such funds were provided under this chapter shall be
the property of the Indian tribe or tribal organization and shall
not be taken into account by any officer or employee of the
Federal Government in determining whether to provide assistance,
or the amount of assistance, under any provision of Federal law.
Such interest income shall be spent on behalf of the school.
(2) Permissible investments
Funds provided under this chapter may be invested by the Indian
tribe or tribal organization before such funds are expended for
the purposes of this chapter so long as such funds are -
(A) invested by the Indian tribe or tribal organization only
in obligations of the United States, or in obligations or
securities that are guaranteed or insured by the United States,
or mutual (or other) funds registered with the Securities and
Exchange Commission and which only invest in obligations of the
United States, or securities that are guaranteed or insured by
the United States; or
(B) deposited only into accounts that are insure by and (!1)
agency or instrumentality of the United States, or are fully
collateralized to ensure protection of the funds, even in the
event of a bank failure.
(c) Recoveries
For the purposes of underrecovery and overrecovery determinations
by any Federal agency for any other funds, from whatever source
derived, funds received under this chapter shall not be taken into
consideration.