[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR628.41]



[Page 278]

 

                           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. 628.41  What are the obligations of an institution that the 

Secretary selects to receive an endowment challenge grant?



    (a) An institution that the Secretary selects to receive an 

endowment challenge grant shall--

    (1) Enter into an agreement with the Secretary to administer the 

endowment challenge grant;

    (2) Establish an endowment fund independent of any other endowment 

fund established by or for that institution;

    (3) Deposit its matching funds in the endowment fund established 

under this part;

    (4) Upon receipt, immediately deposit the grant funds into the 

endowment fund established under this part; and

    (5) Within fifteen working days after receiving the grant funds, 

invest the endowment fund corpus.

    (b) Before the Secretary disburses grant funds and not later than a 

date established by the Secretary through a notice in the Federal 

Register (which date may not be later than the earlier of the last day 

of availability of appropriations or eighteen months after an 

institution has been notified that it has been selected to receive a 

grant), an institution shall--

    (1) Match, with cash or low-risk securities, the endowment challenge 

grant funds to be received under this part;

    (2) Certify to the Secretary--

    (i) The source, kind and amount of the eligible matching funds;

    (ii) That the matching funds are eligible under paragraph (b)(1) of 

this section and Sec. 628.42; and

    (3) Have a certified public accountant or other licensed public 

accountant, who is not an employee of the institution, certify that the 

data contained in the application is accurate.

    (c)(1) For the purpose of paragraph (b)(1) of this section, ``cash'' 

may include cash on hand, certificates of deposit and money market 

funds; and

    (2) A negotiable security, to be considered as part of the 

institution's match--

    (i) Must be low-risk as required in Sec. 628.43; and

    (ii) Must be assessed at its market value as of the end of the 

trading day on the date the institution deposits the security into the 

endowment fund established under this part.



(Approved by the Office of Management and Budget under control number 

1840-0564)



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



[49 FR 28521, July 21, 1984, as amended at 49 FR 37325, Sept. 21, 1984; 

52 FR 11258, Apr. 8, 1987; 53 FR 49146, Dec. 6, 1988]