§ 2506. — Duration of eligibility determination.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 25USC2506]
TITLE 25--INDIANS
CHAPTER 27--TRIBALLY CONTROLLED SCHOOL GRANTS
Sec. 2506. Payment of grants; investment of funds
(a) Payments
(1) In general
Except as otherwise provided in this subsection, the Secretary
shall make payments to grantees under this chapter in two payments,
of which--
(A) the first payment shall be made not later than July 1 of
each year in an amount equal to 80 percent of the amount which
the grantee was entitled to receive during the preceding
academic year; and
(B) the second payment, consisting of the remainder to which
the grantee is entitled for the academic year, shall be made not
later than December 1 of each year.
(2) Excess funding
In a case in which the amount provided to a grant recipient
under paragraph (1)(A) is in excess of the amount that the recipient
is entitled to receive for the academic year involved, the recipient
shall return to the Secretary such excess amount not later than 30
days after the final determination that the school was overpaid
pursuant to this section. The amount returned to the Secretary under
this paragraph shall be distributed equally to all schools in the
system.
(3) Newly funded schools
For any school for which no payment under this chapter was made
from Bureau funds in the preceding academic year, full payment of
the amount computed for the first academic year of eligibility under
this chapter shall be made not later than December 1 of the academic
year.
(4) Late funding
With regard to funds for grantees that become available for
obligation on October 1 of the fiscal year for which such funds are
appropriated, the Secretary shall make payments to grantees not
later than December 1 of the fiscal year.
(5) Applicability of certain title 31 provisions
The provisions of chapter 39 of title 31 shall apply to the
payments required to be made by paragraphs (1), (3), and (4).
(6) Restrictions
Paragraphs (1), (3), and (4) shall be subject to any restriction
on amounts of payments under this chapter that are imposed by a
continuing resolution or other Act appropriating the funds involved.
(b) Investment of funds
(1) Treatment of interest and investment income
Notwithstanding any other provision of law, any interest or
investment income that accrues to any funds provided under this
chapter after such funds are paid to the Indian tribe or tribal
organization and before such funds are expended for the purpose for
which such funds were provided under this chapter shall be the
property of the Indian tribe or tribal organization and shall not be
taken into account by any officer or employee of the Federal
Government in determining whether to provide assistance, or the
amount of assistance, under any provision of Federal law. Such
interest income shall be spent on behalf of the school.
(2) Permissible investments
Funds provided under this chapter may be invested by the Indian
tribe or tribal organization before such funds are expended for the
purposes of this chapter so long as such funds are--
(A) invested by the Indian tribe or tribal organization only
in obligations of the United States, or in obligations or
securities that are guaranteed or insured by the United States,
or mutual (or other) funds registered with the Securities and
Exchange Commission and which only invest in obligations of the
United States, or securities that are guaranteed or insured by
the United States; or
(B) deposited only into accounts that are insure by and \1\
agency or instrumentality of the United States, or are fully
collateralized to ensure protection of the funds, even in the
event of a bank failure.
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\1\ So in original. Probably should be ``insured by an''.
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(c) Recoveries
For the purposes of underrecovery and overrecovery determinations by
any Federal agency for any other funds, from whatever source derived,
funds received under this chapter shall not be taken into consideration.
(Pub. L. 100-297, title V, Sec. 5207, as added Pub. L. 107-110, title X,
Sec. 1043, Jan. 8, 2002, 115 Stat. 2074.)
Prior Provisions
A prior section 2506, Pub. L. 100-297, title V, Sec. 5207, Apr. 28,
1988, 102 Stat. 391; Pub. L. 100-427, Sec. 12, Sept. 9, 1988, 102 Stat.
1608, related to duration of eligibility determination, prior to repeal
by Pub. L. 107-110, title X, Sec. 1043, Jan. 8, 2002, 115 Stat. 2063.
See section 2505 of this title.
Effective Date
Section effective Jan. 8, 2002, except with respect to certain
noncompetitive programs and competitive programs, see section 5 of Pub.
L. 107-110, set out as a note under section 6301 of Title 20, Education.
