[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR628.41]

[Page 279-280]
 
                           TITLE 34--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. 628.41  What are the obligations of an institution that the Secretary selects to receive an endowment challenge grant?

    (a) An institution that the Secretary selects to receive an 
endowment challenge grant shall--
    (1) Enter into an agreement with the Secretary to administer the 
endowment challenge grant;
    (2) Establish an endowment fund independent of any other endowment 
fund established by or for that institution;
    (3) Deposit its matching funds in the endowment fund established 
under this part;
    (4) Upon receipt, immediately deposit the grant funds into the 
endowment fund established under this part; and
    (5) Within fifteen working days after receiving the grant funds, 
invest the endowment fund corpus.
    (b) Before the Secretary disburses grant funds and not later than a 
date established by the Secretary through a notice in the Federal 
Register (which date may not be later than the earlier of the last day 
of availability of appropriations or eighteen months after an 
institution has been notified that it has been selected to receive a 
grant), an institution shall--
    (1) Match, with cash or low-risk securities, the endowment challenge 
grant funds to be received under this part;
    (2) Certify to the Secretary--
    (i) The source, kind and amount of the eligible matching funds;
    (ii) That the matching funds are eligible under paragraph (b)(1) of 
this section and Sec. 628.42; and
    (3) Have a certified public accountant or other licensed public 
accountant,

[[Page 280]]

who is not an employee of the institution, certify that the data 
contained in the application is accurate.
    (c)(1) For the purpose of paragraph (b)(1) of this section, ``cash'' 
may include cash on hand, certificates of deposit and money market 
funds; and
    (2) A negotiable security, to be considered as part of the 
institution's match--
    (i) Must be low-risk as required in Sec. 628.43; and
    (ii) Must be assessed at its market value as of the end of the 
trading day on the date the institution deposits the security into the 
endowment fund established under this part.

(Approved by the Office of Management and Budget under control number 
1840-0564)

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

[49 FR 28521, July 21, 1984, as amended at 49 FR 37325, Sept. 21, 1984; 
52 FR 11258, Apr. 8, 1987; 53 FR 49146, Dec. 6, 1988]