97 STAT. 710 PUBLIC LAW 98-95 —SEPT. 26, 1983 Repayment. Audit and examination. Priority consideration. 20 USC 1057, 1060. Application. Grant termination and recovery. "(ii) The Secretary may permit an institution to spend more than 50 per centum of the endowment fund income notwithstanding clause (i) if the institution demonstrates such an expenditure is necessary because of (I) a financial emergency, such as a pending insolvency or temporary liquidity problem; (II) a life-threatening situation occasioned by a natural disaster or arson; or (III) another unusual occurrence or exigent circumstance. "(d)(1) If at any time an institution withdraws part of the endow- ment fund corpus, it shall repay to the Secretary an amount equal to 50 per centum of the withdrawn amount, which represents the Federal share, plus income earned thereon. The Secretary may usc such repaid funds to make additional endowment grants, or to increase existing endowment grants, to other eligible institutions. "(2) If an institution expends more of the endowment fund income than is permitted under subsection (c), the grantee shall repay the Secretary an amount equal to 50 per centum of the amount improp- erly expended (representing the Federal share thereof). The Secre- tary may usc such repaid fund to make additional endowment grants, or to increase existing endowment grants, to other eligible institutions. "(e) An institution receiving a grant under this section shall provide to the Secretary (or his designee) such information (or access thereto) as may be necessary to audit or examine expenditures made from the endowment fund corpus or income in order to determine compliance with this-section. "(f) In selecting eligible institutions for grants under this section for any fiscal year, the Secretary shall— "(1) give priority to an applicant which is a recipient of a grant made under part A or B of this title during the academic year in which the applicant is applying for a grant under this section; and "(2) give priority to an applicant with a greater need for such a grant, based on the current market value of the applicant's existing endowment in relation to the number of full-time equivalent students enrolled at such institution; "(3) consider— "(A) the effort made by the applicant to build or maintain its existing endowment fund; and "(B) the degree to which an applicant proposes to match the grant with nongovernmental funds. "(g) Any institution which is eligible for assistance under this section may submit to the Secretary a grant application at such time, in such form, and containing such information as the Secre- tary may prescribe. Subject to the availability of appropriations to carry out this section and consistent with the requirement of subsec- tion (D, the Secretary may approve an application for a grant if an institution, in its application, provides adequate assurances that it will comply with the requirements of this section. "(h)(1) After notice and an opportunity for a hearing, the Secre- tary may terminate and recover a grant awarded under this section if the grantee institution— "(A) expends portions of the endowment fund corpus or expends more than the permissible amount of the endowment funds income as prescribed in subsection (c)(3); "(B) fails to invest the endowment fund in accordance with the investment standards set forth in subsection (c)(2); or
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