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13                       SECTION 9
14
15     TO AMEND THE 1976 CODE BY ADDING SECTION 59-101-410 SO AS TO PROVIDE THAT THE GOVERNING BOARDS
16     OF STATE-SUPPORTED COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS MAY LEND THEIR ENDOWMENT
17     FUNDS AND AUXILIARY ENTERPRISE FUNDS TO SEPARATELY CHARTERED NOT-FOR-PROFIT LEGAL ENTITIES
18     WHOSE EXISTENCE IS PRIMARILY TO PROVIDE FINANCIAL ASSISTANCE AND OTHER SUPPORT TO THE
19     INSTITUTION AND ITS EDUCATIONAL PROGRAM, AND TO PROVIDE THE CONDITIONS UNDER WHICH THE FUNDS
20     MAY BE LOANED.
21
22     A.  The 1976 Code is amended by adding:
23
24           "Section 59-101-410.  (A) As used in this section,  auxiliary enterprise funds' means athletics revenues and funds derived from
25     bookstore, licensing, vending, concessions, and food service operations.
26
27           (B) The governing boards of all state-supported colleges, universities, and technical schools may lend from time to time their
28     endowment funds and auxiliary enterprise funds, including interest derived therefrom, currently on deposit with the State Treasurer's Office
29     to separately chartered not-for-profit legal entities whose existence is primarily providing financial assistance and other support to the
30     institution and its educational program.  The governing boards of all state-supported colleges, universities, and technical schools also may
31     lend from time to time their future endowment funds and auxiliary enterprise funds received, including interest derived therefrom, currently
32     on deposit with the State Treasurer's Office to separately chartered not-for-profit legal entities whose existence is primarily to provide
33     financial assistance and other support to the institution and its educational program, provided however, that all of these funds must first
34     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



       PART II                                                        PAGE 535

 1     scholarship purposes.  The loans must be in accordance with such terms and conditions as determined by the respective institution's
 2     governing body."
 3
 4     B.  This section takes effect July 1, 1998.
 5