Page:United States Statutes at Large Volume 106 Part 3.djvu/366

 106 STAT. 2160 PUBLIC LAW 102-421 —OCT. 16, 1992 University are authorized to establish the Gallaudet University Federal Endowment Fund as a permanent endowment fund, in accordance with this section, lor the purpose of promoting the financial independence of the University. The Secretary and the Board of Trustees may enter into such agreements as may be necessary to carry out the purposes of this section with respect to the University. "(2) The Secretary and the Board of Trustees or other governing body of the institution of higher education with which the Secretary has an agreement under section 112 are authorized to establish the National Technical Institute for the Deaf Federal Endowment Fund as a permanent endowment fund, in accordance with this section, for the purpose of promoting the financial independence of NTID. The Secretary and the Board or other governing body may enter into such agreements as may be necessary to carry out the purposes of this section with respect to NTID. "(b) FEDERAL PAYMENTS. — "(1) The Secretary shall, consistent with this section, make payments to the Federal endowment funds established under suDsection (a) from amounts appropriated under subsection (h) for the fund involved. " (2) Subject to the availability of appropriations and the non-Federal matching requirements of paragraph (3), the Secretary shall make payments to each Federal endowment fund in amounts equal to sums contributed to the fund from non- Federal sources (excluding tremsfers from other endowment funds of the institution involved). "(S) Effective for fiscal year 1993 and each succeeding fiscal year, for any fiscal year in which the sums contributed to the Federal endowment fund of the institution involved from non-Federal sources exceed $1,000,000, the non-Federal contribution to the Federal endowment fund shall be $2 for each Federal dollar provided in excess of $1,000,000 (excluding transfers from other endowment funds of the institution involved), "(c) INVESTMENTS.— "(1) Except as provided in subsection (e), the University and NTID, respectively, shall invest its Federal endowment fund corpus and income in instruments and seciuities offered through one or more cooperative service organizations of operating educational orgamzations under section 501(f) of the Internal Revenue Code of 1986, or in low-risk instnmients and seciuities in which a regulated insurance company may invest under the laws of the State in which the institution involved is located. "(2) In managing the investment of its Federal endowment fund, the University or NTID shall exercise the judgment and care, under the prevailing circimistances, that a person of prudence, discretion, and intelligence would exercise in the management of that person's own business affairs. "(3) Neither the University nor NTID may invest its Federal endowment fund corpus or income in real estate, or in instruments or securities issued by an organization in which an executive officer, a member of the Board of Trustees of the University or of the host institution, or a member of the Advisory Board of NTID is a controlling shareholder, director,
 * (1) The Secretary and the Board of Trustees of Gallaudet

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