628.45—How much endowment fund income may a grantee use and for what purposes?
(1)
May withdraw and spend up to 50 percent of the total aggregate endowment fund income earned prior to the date of expenditure;
(iii)
Costs associated with buying and selling securities, such as stockbroker commissions and fees to “load” mutual funds;
(ii)
An activity that is inconsistent with a State plan for desegregation applicable to the grantee; or
(b)
Notwithstanding paragraph (a)(1) of this section, the Secretary may permit a grantee that requests to spend more than 50 percent of the total aggregate endowment fund income to do so if the grantee demonstrates that the expenditure is necessary because of—
(2)
A situation threatening the existence of the institution such as destruction due to a natural disaster or arson; or
(3)
Another unusual occurrence or demanding circumstance, such as a judgment against the institution for which the institution would be liable.
(c)
If, during the grant period, a grantee spends more endowment fund income or uses it for purposes other than permitted under paragraphs (a) or (b) of this section, it shall repay to the Secretary an amount equal to 50 percent of the amount improperly spent.
(d)
At the end of the grant period, the institution may use all of the endowment fund income for any educational purpose.