[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: 34CFR628.43]



[Page 278-279]

 

                           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. 628.43  What investment standards shall a grantee follow?



    (a) A grantee shall invest, for the duration of the grant period, 

the endowment fund established under this part in savings accounts or in 

low-risk securities in which a regulated insurance company may invest 

under the law of the State in which the institution is located.

    (b) When investing the endowment fund, the grantee shall exercise 

the judgment and care, under the circumstances, that a person of 

prudence, discretion and intelligence would exercise in the management 

of his or her own financial affairs.

    (c) An institution may invest its endowment fund in savings accounts 

permitted under paragraph (a) of this section such as--

    (1) A federally insured bank savings account;

    (2) A comparable interest bearing account offered by a bank; or



[[Page 279]]



    (3) A money market fund.

    (d) An institution may invest its endowment fund in low-risk 

securities permitted under paragraph (a) of this section such as--

    (1) Certificates of deposit;

    (2) Mutual funds;

    (3) Stocks; or

    (4) Bonds.

    (e) An institution may not invest its endowment fund in real estate.



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