[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: 34CFR628.48]



[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]