) For the purpose of compliance with Federal laws designating the University of Guam as one of the land-grant colleges eligible to receive donations of public land or land scrip for the endowment and maintenance of colleges for the benefit of agriculture and the mechanic arts, there is hereby established the
‘University of Guam Land Grant Endowment Fund’ which shall be maintained separate and apart from any other funds of the govern-
ment of Guam, and independent records and accounts shall be maintained in connection therewith by the University of Guam. A
quarterly financial statement of the Fund shall be submitted to the
Guam Legislature by the Board.
(b) The sum of $3,000,000 received from the Federal Government in lieu of donation of public land or land scrip shall be credited to the Fund. Said sum shall remain unimpaired and preserved.
(c) Said sum shall be invested in bonds of the United States or of the States or Territories or bank certificates of deposit or some other investment-grade investments as would normally be utilized by higher education institutions in a manner adopted by the Board. The Board shall administer the investment of the funds as trustees for the benefit of the University of Guam.
(d) No portion of said sum, nor the interest thereon, shall be applied, directly or indirectly, to the purchase, erection, preservation, or repair of any building or buildings.
(e) The Board is designated Custodian or Trustee of the interest from the investment of the $3,000,000 for the benefit of the University of Guam. The interest from the investment of said sum shall be appropriated by the Legislature directly to the Board for the endowment, support and maintenance of the University of Guam subject to the provisions of Federal laws establishing the University of Guam as a land-grant college.
(f) There is hereby established the ‘Land Grant Custodial Maintenance Fund’ from which the payment of all expenses incurred in the management, investment, and disbursements of the Land Grant Endowment Fund shall be made, and no such expenses shall be paid or deducted directly from the Land Grant
Endowment Fund or the interest or income received therefrom. The Land Grant Custodial Maintenance Fund shall be administered by the Board and shall be used solely for the purposes stated in this subsection and all monies appropriated to such fund by the Legislature shall be used only for such designated purposes. The fund shall be maintained separate and apart from any other funds of the government of Guam, and independent records and accounts shall be made in connection therewith by the University of Guam. A quarterly financial statement of the fund shall be submitted to the Guam Legislature by the Board at the same time that the quarterly financial statement for the University of Guam Land Grand Endowment Fund is submitted.
SOURCE: GC § 11844, as added by P.L. 14-40, as R/R by P.L. 19-40:1.