Page:United States Statutes at Large Volume 112 Part 4.djvu/1034

 112 STAT. 2766 PUBLIC LAW 105-285—OCT. 27, 1998 a grant to the qualified entity authorized to conduct the project. In making such a grant, the Secretary shall make the grant on the first day of the project year in an amount not to exceed the lesser of— (1) the agp-egate amount of funds committed as matching contributions from non-Federal public or private sector sources; or (2) $1,000,000. SEC. 407. RESERVE FUND. (a) ESTABLISHMENT.— ^A qualified entity under this title, other than a State or local government agency or a tribal government, shall establish a Reserve Fund that shall be maintained in accordance with this section. (b) AMOUNTS m RESERVE FUND. — (1) IN GENERAL.—As soon after receipt as is practicable, a qualified entity shall deposit in the Reserve Fund established under subsection (a)— (A) all funds provided to the qualified entity from any public or private source in connection with the demonstration project; and (B) file proceeds from any investment made under subsection (c)(2). (2) UNIFORM ACCOUNTING REGULATIONS.— The Secretary shall prescribe regulations with respect to accounting for amounts in the Reserve Fund established under subsection (a). (c) USE OP AMOUNTS IN THE RESERVE FUND.— (1) IN GENERAL.—^A qualified entity shall use the amounts in the Reserve Fund established under subsection (a) to— (A) assist participants in the demonstration project in obtaining the skills (including economic literacy, budgeting, credit, and counseUng skills) and information necessary to achieve economic self-sufficiency through activiti^ requiring qualified expenses; (B) provide deposits in accordance with section 410 for individuals selected by the qualified entity to participate in the demonstration project; (C) administer ihe demonstration project; and (D) provide the research organization evaluating the demonstration project under section 414 with such information with respect to the demonstration project as may be required for the evaluation. (2) AUTHORITY TO INVEST FUNDS. — (A) GUIDELINES. —The Secretary shall establish guidelines for investing amounts in the Reserve Fund established under subsection (a) in a manner that provides an appropriate balance between return, liquidity, and rii^. (B) INVESTMENT. — ^A qualified entity shall invest the amounts in its Reserve Fund that are not immediately needed to carry out the provisions of paragraph (1), in accordance with the guidelines established under subparagraph (A). (3) LIMITATION ON USES.—Not more than 9.5 percent of the amounts provided to a qualified entity under section 406(b) shall be used by ihe qualified entity for the purposes described in subparagraims (A), (C), and (D) of paragraph (1), of which

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