---
kind: "section"
citation: "34 C.F.R. § 628.48"
title: "34"
number: "628.48"
heading: "What happens if a grantee fails to administer the endowment challenge grant in accordance with applicable regulations?"
url: "https://uscodex.org/cfr/34/628.48"
---

# §628.48. What happens if a grantee fails to administer the endowment challenge grant in accordance with applicable regulations?

- (a) The Secretary may, after giving the grantee notice and an opportunity for a hearing, terminate an endowment challenge grant if the grantee—
  - (1) Withdraws or spends any part of the endowment fund corpus in violation of [§ 628.44(a)(1)](/cfr/34/628.44.md?p=a-1);
  - (2) Spends any portion of the endowment fund income not permitted to be spent in [§ 628.45](/cfr/34/628.45.md);
  - (3) Fails to invest the endowment fund in accordance with the investment standards set forth in [§ 628.43](/cfr/34/628.43.md); or
  - (4) Fails to meet the requirements in [§ 628.41](/cfr/34/628.41.md).
- (b) If the Secretary terminates a grant under [paragraph (a)](#a) of this section, the grantee must return to the Secretary an amount equal to the sum of the original endowment challenge grant or grants plus the income earned on that sum.

## Notes

### Amendments

[49 FR 28521, July 21, 1984, as amended at 52 FR 11258, Apr. 8, 1987; 52 FR 36375, Sept. 28, 1987]

### Authority

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

### Source

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

### Amendments

[49 FR 28521, July 21, 1984, as amended at 52 FR 11258, Apr. 8, 1987; 52 FR 36375, Sept. 28, 1987]