Hint: To avoid truncation when printing, be sure your software is set to print in Landscape Orientation. Adjust font size as needed.

Indicates Matter Stricken
Indicates New Matter

 8                       SECTION 9
 9
10     TO AMEND THE 1976 CODE BY ADDING SECTION 59-101-410 SO AS TO PROVIDE THAT THE GOVERNING BOARDS
11     OF STATE-SUPPORTED COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS MAY LEND THEIR ENDOWMENT
12     FUNDS AND AUXILIARY ENTERPRISE FUNDS TO SEPARATELY CHARTERED NOT-FOR-PROFIT LEGAL ENTITIES
13     WHOSE EXISTENCE IS PRIMARILY TO PROVIDE FINANCIAL ASSISTANCE AND OTHER SUPPORT TO THE
14     INSTITUTION AND ITS EDUCATIONAL PROGRAM, AND TO PROVIDE THE CONDITIONS UNDER WHICH THE FUNDS
15     MAY BE LOANED.
16
17     A.  The 1976 Code is amended by adding:
18
19           "Section 59-101-410.  (A) As used in this section,  auxiliary enterprise funds' means athletics revenues and funds derived from
20     bookstore, licensing, vending, concessions, and food service operations.
21
22           (B) The governing boards of all state-supported colleges, universities, and technical schools may lend from time to time their
23     endowment funds and auxiliary enterprise funds, including interest derived therefrom, currently on deposit with the State Treasurer's Office
24     to separately chartered not-for-profit legal entities whose existence is primarily providing financial assistance and other support to the
25     institution and its educational program.  The governing boards of all state-supported colleges, universities, and technical schools also may
26     lend from time to time their future endowment funds and auxiliary enterprise funds received, including interest derived therefrom, currently
27     on deposit with the State Treasurer's Office to separately chartered not-for-profit legal entities whose existence is primarily to provide
28     financial assistance and other support to the institution and its educational program, provided however, that all of these funds must first
29     be recorded with the State Treasurer's Office.  Income from the loan of auxiliary funds as provided in this section must be used solely for
30     scholarship purposes.  The loans must be in accordance with such terms and conditions as determined by the respective institution's
31     governing body."
32
33     B.  This section takes effect July 1, 1998.



        PART II                                    PAGE 537