---
kind: "section"
citation: "20 U.S.C. § 130aa–2"
title: "20"
title_heading: "Education"
number: "130aa–2"
heading: "Investments"
release: "119-102"
url: "https://uscodex.org/usc/20/130aa-2"
units:
  - "Chapter 8 — Howard University"
  - "Subchapter II — Endowment"
---

# §130aa–2. Investments

- (a) The [University](/usc/20/130aa.md?p=5) shall invest its [endowment fund corpus](/usc/20/130aa.md?p=2) and [endowment fund income](/usc/20/130aa.md?p=3) 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](/usc/20/4702.md?p=3), mutual [fund](/usc/20/4702.md?p=3), or obligations of the United States.
- (b) The [University](/usc/20/130aa.md?p=5), in investing its [endowment fund corpus](/usc/20/130aa.md?p=2) 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.)