§130aa–3 Withdrawals and Expenditures

Summary

The University may spend income from its endowment to pay normal costs like operations, maintenance, administration, faculty and staff, building work, student and community programs, technical help, and research. It must not use endowment income or the principal (corpus) to support its executive officers or to fund any commercial venture started after January 1, 1981. As a rule, the University may not spend more than 50 percent of the total endowment income it has earned up to that time. The Secretary can allow spending over 50 percent if the University proves it is necessary because of a financial emergency (such as insolvency or a cash shortage), a life‑threatening natural disaster or arson, or another urgent unusual event. If the University spends more than allowed, it must repay the Secretary 50 percent of the excess. If it withdraws or uses endowment principal, it must repay 50 percent of that amount plus any income earned on it.