20 U.S.C. § 130aa–4: Enforcement

Summary

After the University is given notice and a chance for a hearing, the Secretary can end a grant and take back the money if the University does one of three things. It spends endowment principal or income more than allowed by section 130aa–3, it fails to invest the endowment or income as required by section 130aa–2, or it does not properly report how it invested or spent the endowment or income. If a grant is ended, the University must return to the U.S. Treasury the original grant amount or amounts plus any income earned on them. The Secretary can also require other steps to fix the problem and protect the United States’ financial interests.

Title 20, §130aa–4

Education, Source: USLM XML via OLRC

(a)After notice and an opportunity for a hearing, the Secretary is authorized to terminate and recover any grant awarded under this subchapter if the University—

(1)withdraws or expends any endowment fund corpus, or any endowment fund income in excess of the amount authorized by section 130aa–3 of this title;

(2)fails to invest its endowment fund corpus or income in accordance with the investment standards set forth in section 130aa–2 of this title; or

(3)fails to account properly to the Secretary concerning investments and expenditures of its endowment fund corpus or income.

(b)If the Secretary terminates a grant under subsection (a), the University shall return to the Treasury of the United States an amount equal to the sum of the original grant or grants under this subchapter plus any income earned thereon. The Secretary may direct the University to take such other appropriate measures to remedy any violation of this subchapter and to protect the financial interest of the United States.

Editorial Notes

Codification This subchapter, the first time it appears in subsec. (b), was in the original “this Act” which was translated as reading “this title”, meaning title II of Pub. L. 98–480, Oct. 17, 1984, 98 Stat. 2236, as the probable intent of Congress.

§130aa–4 Enforcement

Summary

Title 20, §130aa–4

Notes & Related Subsidiaries

Editorial Notes

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