[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR628.48]

[Page 280]
 
                           TITLE 34--EDUCATION
 
 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 628_ENDOWMENT CHALLENGE GRANT PROGRAM--Table of Contents
 
   Subpart E_What Conditions Must a Grantee Meet Under the Endowment 
                        Challenge Grant Program?
 
Sec. 628.48  What happens if a grantee fails to administer the endowment 
challenge grant in accordance with applicable regulations?

    (a) The Secretary may, after giving the grantee notice and an 
opportunity for a hearing, terminate an endowment challenge grant if the 
grantee--
    (1) Withdraws or spends any part of the endowment fund corpus in 
violation of Sec. 628.44(a)(1);
    (2) Spends any portion of the endowment fund income not permitted to 
be spent in Sec. 628.45;
    (3) Fails to invest the endowment fund in accordance with the 
investment standards set forth in Sec. 628.43; or
    (4) Fails to meet the requirements in Sec. 628.41.
    (b) If the Secretary terminates a grant under paragraph (a) of this 
section, the grantee must return to the Secretary an amount equal to the 
sum of the original endowment challenge grant or grants plus the income 
earned on that sum.

(Authority: 20 U.S.C. 1065)

[49 FR 28521, July 21, 1984, as amended at 52 FR 11258, Apr. 8, 1987; 52 
FR 36375, Sept. 28, 1987]