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20 U.S.C. § 130aa–2Investments

submitted 42 years ago by Pub. L. 98-480 to r/title-20-EDUCATION · 100 words · no verdicts yet

in plain englishAI-generated · not legal advice

Howard University must invest its endowment in low-risk options, like insured savings accounts, CDs, or U.S. government bonds. These must be options a regulated D.C. insurance company could legally invest in. Howard must manage this money with the same care a prudent person would use for their own business.

(a) Howard University must invest its endowment fund corpus and income in the same kind of low-risk instruments and securities that a regulated insurance company is allowed to invest in under District of Columbia law — for example, a federally insured bank savings account or similar interest-bearing account, a certificate of deposit, a money market fund, a mutual fund, or U.S. government obligations. (b) When investing that corpus and income, the University must use the judgment, discretion, and intelligence that a prudent person would use managing their own business affairs, given the circumstances at the time.
the actual law source: uscode.house.gov ↗public domain
(a)

The University shall invest its endowment fund corpus and endowment fund income in those low-risk instruments and securities in which a regulated insurance company may invest under the law of the District of Columbia, such as federally insured bank savings account or comparable interest bearing account, certificate of deposit, money market fund, mutual fund, or obligations of the United States.

(b)

The University, in investing its endowment fund corpus and income, shall exercise the judgment and care, under circumstances then prevailing, which a person of prudence, discretion, and intelligence would exercise in the management of his own business affairs.

Source credit: (Pub. L. 98–480, title II, § 204, Oct. 17, 1984, 98 Stat. 2246.)

history & why it existsrecord from the source credit
  • 1984Enacted · Pub. L. 98-480 · 98 Stat. 2246

A history note hasn’t been published yet. The record shows enactment by Pub. L. 98-480 on 1984-10-17.

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