PUBLIC LAW 102-421 —OCT. 16, 1992 106 STAT. 2161 or owner within the meaning of Federal securities laws and other applicable laws. Neither the University nor NTID may assign, hypothocate, encumber, or create a lien on the Federal endowment fund corpus without specific written authorization of the Secretary. "(d) WITHDRAWALS AND EXPENDITURES. — "(1) Except as provided in paragraph (3)(B), neither the University nor NTID may withdraw or expend any of the corpus of its Federal endowment fund. "(2)(A) The University and NTID, respectively, may withdraw or expend the income of its Federal endowment fund only for expenses necessary to the operation of that institution, including expenses of operations and maintenance, administration, academic and support personnel, construction and renovation, community and student services programs, technical assistance, and research. "(B) Neither the University nor NTID may withdraw or expend the income of its Federal endowment fund for any commercial purpose. "(C) Beginning on October 1, 1992, the University and Records. NTID shall maintain records of the income generated from its respective Federal endowment fund for the prior fiscal year. "(3)(A) Except as provided in subparagraph (B), the University and NTID, respectively, may, on an annual basis, withdraw or expend not more than 50 percent of the income generated from its Federal endowment fund from the prior fiscal year. "(B) The Secretary may permit the University or NTID to withdraw or expend a portion of its Federal endowment fund corpus or more than 50 percent of the income generated from its Federal endowment fund from the prior fiscal year if the institution involved demonstrates, to the Secretary's satisfaction, that such withdrawal or 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 natural disaster or arson; or "(iii) another unusual occurrence or exigent circumstance. "(e) INVESTMENT AND EXPENDITURE FLEXIBILITY. —The corpus associated with a Federal payment (and its non-Federal match) made to the Federal endowment fund of the University or NTID shall not be subject to the investment limitations of subsection (c)(1) after 10 fiscal years following the fiscal year in which the funds are matched, and the income generated from such corpus after the tenth fiscal year described in this subsection shall not be subject to such investment limitations and to the withdrawal and expenditure limitations of subsection (d)(3). "(f) RECOVERY OF PAYMENTS. — After notice and an opportunity for a hearing, the Secretary is authorized to recover any Federal payments under this section if the University or NTID— "(1) makes a withdrawal or expenditure of the corpus or income of its Federal endowment fund that is not consistent with this section; "(2) fails to comply with the investment standards and limitations under this section; or
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