---
kind: "section"
citation: "34 C.F.R. § 628.43"
title: "34"
number: "628.43"
heading: "What investment standards shall a grantee follow?"
url: "https://uscodex.org/cfr/34/628.43"
---

# §628.43. What investment standards shall a grantee follow?

- (a) A grantee shall invest, for the duration of the grant period, the endowment fund established under this part in savings accounts or in low-risk securities in which a regulated insurance company may invest under the law of the State in which the institution is located.
- (b) When investing the endowment fund, the grantee shall exercise the judgment and care, under the circumstances, that a person of prudence, discretion and intelligence would exercise in the management of his or her own financial affairs.
- (c) An institution may invest its endowment fund in savings accounts permitted under [paragraph (a)](#a) of this section such as—
  - (1) A federally insured bank savings account;
  - (2) A comparable interest bearing account offered by a bank; or
  - (3) **A money market fund.**
- (d) An institution may invest its endowment fund in low-risk securities permitted under [paragraph (a)](#a) of this section such as—
  - (1) Certificates of deposit;
  - (2) Mutual funds;
  - (3) Stocks; or
  - (4) **Bonds.**
- (e) An institution may not invest its endowment fund in real estate.

## Notes

### Authority

Authority: 20 U.S.C. 1065, unless otherwise noted.

### Source

Source: 49 FR 28521, July 21, 1984, unless otherwise noted.