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Title 7 — AgricultureRelease 119-73not60

§304 Investment of Proceeds of Sale of Land or Scrip

Title 7 › Chapter 13— AGRICULTURAL AND MECHANICAL COLLEGES › Subchapter I— COLLEGE-AID LAND APPROPRIATION › § 304

Last updated Apr 3, 2026|Official source

Summary

States must invest money from the sale of lands or land scrip in United States or State bonds or in other safe investments. If a State has no State bonds, its legislature can allow other safe investments only after it agrees to fix a fair rate of return and to keep the original capital forever intact. The money must be a perpetual fund (except as another part of the law allows), and the interest must be used only to endow, support, and maintain at least one college whose main purpose is to teach agriculture and the mechanical arts, including military tactics, while not excluding other scientific and classical studies.

Full Legal Text

Title 7, §304

Agriculture — Source: USLM XML via OLRC

All moneys derived from the sale of lands as provided in section 302 of this title by the States to which lands are apportioned and from the sales of land scrip provided for in said section shall be invested in bonds of the United States or of the States or some other safe bonds; or the same may be invested by the States having no State bonds, in any manner after the legislatures of such States shall have assented thereto and engaged that such funds shall yield a fair and reasonable rate of return, to be fixed by the State legislatures, and that the principal thereof shall forever remain unimpaired: Provided, That the moneys so invested or loaned shall constitute a perpetual fund, the capital of which shall remain forever undiminished (except so far as may be provided in section 305 of this title), and the interest of which shall be inviolably appropriated, by each State which may take and claim the benefit of this subchapter, to the endowment, support, and maintenance of at least one college where the leading object shall be, without excluding other scientific and classical studies and including military tactics, to teach such branches of learning as are related to agriculture and the mechanic arts, in such manner as the legislatures of the States may respectively prescribe, in order to promote the liberal and practical education of the industrial classes in the several pursuits and professions in life.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1926—Act Apr. 13, 1926, substituted “bonds” for “stocks” and “a fair and reasonable rate of return, to be fixed by the State Legislatures” for “not less than 5 per centum upon the amount so invested”, before proviso. 1883—Act Mar. 3, 1883, inserted “or the same may be invested by the States having no State stocks, in any other manner after the legislatures of such States shall have assented thereto, and engaged that such funds shall” after “other safe stocks” and substituted “yield” for “yielding”, “principal” for “capital” and “unimpaired” for “undiminished”.

Reference

Citations & Metadata

Citation

7 U.S.C. § 304

Title 7 — Agriculture

Last Updated

Apr 3, 2026

Release point: 119-73not60