§2507. Payment of grants; investment of funds

(a) Payments

(1) Except as otherwise provided in this subsection, the Secretary shall make payments to grantees under this chapter in 2 payments, of which-

(A) the first payment shall be made not later than July 15 of each year in an amount equal to one-half 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) 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.

(3) 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.

(4) The provisions of chapter 39 of title 31 shall apply to the payments required to be made by paragraphs (1), (2), and (3).

(5) Paragraphs (1), (2), and (3) 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) Notwithstanding any other provision of law, any interest or investment income that accrues on 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.

(2) Funds provided under this chapter may be-

(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

(B) deposited only into accounts that are insured by an agency or instrumentality of the United States.

(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, §5208, Apr. 28, 1988, 102 Stat. 393 ; Pub. L. 100–427, §13, Sept. 9, 1988, 102 Stat. 1609 ; Pub. L. 103–382, title III, §382(c), Oct. 20, 1994, 108 Stat. 4017 .)

Amendments

1994-Subsec. (a). Pub. L. 103–382 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows:

"(1) Except as otherwise provided in this subsection, the Secretary shall make payments to grantees under this chapter in two payments:

"(A) one payment to be made no later than October 1 of each fiscal year in an amount equal to one-half the amount paid during the preceding fiscal year to the grantee or a contractor that has elected to have the provisions of this chapter apply, and

"(B) the second payment consisting of the remainder to which the grantee or contractor is entitled for the fiscal year to be made by no later than January 1 of the fiscal year.

"(2) For any school for which no payment was made from Bureau funds in the preceding fiscal year, full payment of the amount computed for each fiscal year shall be made by January 1 of the fiscal year.

"(3) Paragraphs (1) and (2) of this subsection shall be subject to any restriction on amounts of payments under this chapter that may be imposed by a continuing resolution or other Act appropriating the funds involved."

1988-Subsec. (a)(2). Pub. L. 100–427, §13(a), substituted "from Bureau funds" for "under this chapter".

Subsec. (a)(3). Pub. L. 100–427, §13(b), added par. (3).

Section Referred to in Other Sections

This section is referred to in title 20 section 8064.