20 U.S.C. § 1011k — Recovery of payments
submitted 28 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 405 words · no verdicts yet
A grant-funded academic facility generally has a 20-year Federal interest. If its public or academic use ends during that period, the United States may recover a proportional amount, and the project may never be used for sectarian purposes.
(a) Public benefit. If a facility built with a grant under part A of subchapter VII as it existed before October 7, 1998, or part B as it existed before July 23, 1992, is used as an academic facility for 20 years after construction is complete, the value of the public benefit to the United States is considered equal to the grant. Those 20 years are therefore the Federal-interest period for that subchapter as it then existed.
(b) Recovery when public benefit ends. During those 20 years, if (1) the applicant, or its successor in title or possession, stops being a public or nonprofit institution, or (2) the facility stops being an academic facility or becomes a facility excluded from that term under the former subchapter, the United States may recover from the applicant or successor a proportional amount. The amount bears the same ratio to the facility’s then value, or the value of the approved project or projects, as the Federal grant bore to the cost financed with the grant. The Secretary* may release the institution from this obligation for good cause. The parties may agree on the value, or it may be decided in an action in the Federal district court where the facility is located.
(c) Prohibition on religious use. Regardless of subsections (a) and (b), a project assisted under subchapter VII as it existed before October 7, 1998, may never be used for religious worship, a sectarian activity, or a school or department of divinity*.
Congress declares that, if a facility constructed with the aid of a grant under part A of subchapter VII as such part A was in effect prior to October 7, 1998, or part B of such subchapter as part B was in effect prior to July 23, 1992, is used as an academic facility for 20 years following completion of such construction, the public benefit accruing to the United States will equal in value the amount of the grant. The period of 20 years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of such subchapter as so in effect.
If, within 20 years after completion of construction of an academic facility which has been constructed, in part with a grant under part A of subchapter VII as such part A was in effect prior to October 7, 1998, or part B of subchapter VII as such part B was in effect prior to July 23, 1992—
the applicant under such parts as so in effect (or the applicant’s successor in title or possession) ceases or fails to be a public or nonprofit institution; or
the facility ceases to be used as an academic facility, or the facility is used as a facility excluded from the term “academic facility” (as such term was defined under subchapter VII, as so in effect), unless the Secretary* determines that there is good cause for releasing the institution from its obligation,
the United States shall be entitled to recover from such applicant (or successor) an amount which bears to the value of the facility at that time (or so much thereof as constituted an approved project or projects) the same ratio as the amount of Federal grant bore to the cost of the facility financed with the aid of such grant. The value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated.
Notwithstanding the provisions of subsections (a) and (b), no project assisted with funds under subchapter VII (as in effect prior to October 7, 1998) shall ever be used for religious worship or a sectarian activity or for a school or department of divinity*.
Source credit: (Pub. L. 89–329, title I, § 122, as added Pub. L. 105–244, title I, § 101(a), Oct. 7, 1998, 112 Stat. 1601.)
- 1998Enacted · Pub. L. 89-329 · 112 Stat. 1601
A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-329 on 1998-10-07.
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