29 U.S.C. § 1907 : US Code - Section 1907: Helen Keller National Center Federal Endowment Fund
Search 29 U.S.C. § 1907 : US Code - Section 1907: Helen Keller National Center Federal Endowment Fund
The Secretary and the Board of Directors of the Helen Keller
National Center are authorized to establish the Helen Keller
National Center Federal Endowment Fund (hereafter in this section
referred to as the "Endowment Fund") in accordance with the
provisions of this section, to promote the financial independence
of the Helen Keller National Center. The Secretary and the Board
may enter into such agreements as may be necessary to carry out the
purposes of this section.
(b) Federal payments
(1) In general
The Secretary shall make payments to the Endowment Fund from
amounts appropriated pursuant to subsection (h) of this section,
consistent with the provisions of this section.
(2) Amount of payment
Subject to the availability of appropriations, the Secretary
shall make payments to the Endowment Fund in amounts equal to
sums contributed to the Endowment Fund from non-Federal sources
(excluding transfers from other endowment funds of the Center).
(1) In general
The Center, in investing the Endowment Fund corpus and income,
shall exercise the judgment and care, under the prevailing
circumstances, which a person of prudence, discretion, and
intelligence would exercise in the management of that person's
own business affairs.
(A) Federally insured investments and other investments
The Endowment Fund corpus and income shall be invested in
federally insured bank savings accounts or comparable interest
bearing accounts, certificates of deposit, money market funds,
mutual funds, obligations of the United States, or other low-
risk instruments and securities in which a regulated insurance
company may invest under the laws of the State of New York.
(B) Real estate
The Endowment Fund corpus and income may not be invested in
(C) Conflict of interest
The Endowment Fund corpus or income may not be invested in
instruments or securities issued by an organization in which an
executive officer is a controlling shareholder, director, or
owner within the meaning of Federal securities laws and other
The Center may not assign, hypothecate, encumber, or create a
lien on the Endowment Fund corpus without specific written
authorization of the Secretary.
(d) Withdrawals and expenditures
(1) In general
For a 20-year period following the receipt of a payment under
this section, the Center shall not withdraw or expend the Federal
payment or matching contribution made to the Endowment Fund
corpus. On the expiration of such period, the Center may use the
Endowment Fund corpus plus any of the Endowment Fund income for
any purpose that benefits individuals who are deaf-blind.
(2) Operational and commercial expenses
(A) In general
The Helen Keller National Center may withdraw or expend the
Endowment Fund income for any expenses necessary for the
operation of the Center, including expenses of operations and
maintenance, administration, academic and support personnel,
construction and renovation, community and client services
programs, technical assistance, and research.
The Center may not withdraw or expend the Endowment Fund
income for any commercial purpose.
(3) Limitations and waiver of limitations
(A) In general
Except as provided in subparagraph (B), the Center shall not
withdraw or expend more than 50 percent of the total aggregate
Endowment Fund income earned prior to the time of withdrawal or
The Secretary may permit the Center to withdraw or expend
more than 50 percent of its total aggregate endowment income
where the Center demonstrates to the Secretary's satisfaction
that such withdrawal or expenditure is necessary because of -
(i) a financial emergency, such as a pending insolvency or
temporary liquidity problem;
(ii) a life-threatening situation occasioned by a natural
disaster or arson; or
(iii) another unusual occurrence or exigent circumstance.
(e) Reporting requirements
(1) Financial records
The Helen Keller National Center shall keep accurate financial
records relating to the operation of the Endowment Fund.
(2) Audit and report
The Center shall arrange for the conduct of an annual
financial and compliance audit of the Endowment Fund in the
manner prescribed by the Secretary pursuant to section 1903(a)
of this title.
The Center shall submit a copy of the report on the audit
required under subparagraph (A) to the Secretary within 15 days
after completion of the audit and acceptance of the audit by
(3) Annual report
Not later than 60 days after the end of each fiscal year, the
Center shall provide to the Secretary an annual report on the
uses of funds provided by the Federal endowment program
authorized under this section. Such report shall contain such
information, and be in such form as the Secretary may require.
(f) Recovery of payments
After notice and an opportunity for a hearing, the Secretary is
authorized to recover any Federal payments made under this section
if the Helen Keller National Center -
(1) makes a withdrawal or expenditure from the Endowment Fund
corpus or income which is not consistent with the provisions of
(2) fails to comply with the investment standards and
limitations under this section; or
(3) fails to account properly to the Secretary concerning the
investment of or expenditures from the Endowment Fund corpus or
For the purposes of this section:
(1) Endowment fund
The term "endowment fund" means a fund, or a tax-exempt
foundation, established and maintained by the Helen Keller
National Center for the purpose of generating income for the
support of the Center.
(2) Endowment Fund corpus
The term "Endowment Fund corpus" means an amount equal to the
Federal payments made to the Endowment Fund and amounts
contributed to the Endowment Fund from non-Federal sources.
(3) Endowment Fund income
The term "Endowment Fund income" means an amount equal to the
total market value of the Endowment Fund minus the Endowment Fund
(h) Authorization of appropriations
There are authorized to be appropriated to carry out this
section, such sums as may be necessary for each of the fiscal years
1999 through 2003. Such sums shall remain available until expended.
Construction; effect on agreements
Helen keller national center for youths and adults who are deaf-blind