97 STAT. 708 PUBLIC LAW 98-95—SEPT. 26, 1983 Public Law 98-95 98th Congress An Act Sept. 26, 1983 [S. 1872] Challenge Grant Amendments of 1983 20 USC 1001 note. To increase endowment funds for eligible individuals under part C of title m of the Higher Education Act of 1965. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Challenge Grant Amendments of 1983". SEC. 2. Part C of title III of the Higher Education Act of 1965 (hereinafter in this Act referred to as "the Act") is amended by adding after section 332 the following new section: ENDOWMENT GRANTS 20 USC 1065a. "SEC. 333. (a)(1) The purpose of this section is to establish a program to provide matching grants to eligible institutions of higher education in order to establish or increase endowment funds at such institutions, to provide additional incentives to promote fundraising activities by such institutions, and to foster increased independence and self-sufficiency at such institutions. Definitions. "(2) For purposes of this section: "(A) The term 'endowment fund' means a fund established by State law, by an institution of higher education, or by a founda- tion which is exempt from taxation and is maintained for the purpose of generating income for the support of the institution, but which shall not include real estate. "(B) The term 'endowment fund corpus' means an amount equal to the grant or grants awarded under this section plus an amount equal to such grant or grants provided by the institution. "(C) The term 'endowment fund income* means an amount equal to the total value of the endowment fund established under this section minus the endowment fund corpus. Post, p. 711. "(b)(1) From sums available for this section under section 347, the Secretary is authorized to award endowment grants to eligible institutions of higher education to establish or increase an endow- ment fund at such institution. Such grants shall be made only to eligible institutions described in paragraph (4) whose applications have been approved pursuant to subsection (g). Matching funds "(2) No institution shall receive a grant under this section, unless requirement. guch institution has deposited in its endowment fund established under this section an amount equal to the amount of such grant. The source of funds for this institutional match shall not include Federal funds or funds from an existing endowment fund. Grant period. "(3)(A) The period of a grant under this section shall be not more than twenty years. "(B) During the grant period, an institution may not withdraw or expend any of the endowment fund corpus. (C) After the termination of the grant period, an institution may usc the endowment fund corpus plus any endowment fund income for any educational purpose.
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