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PART II                                                                            PAGE 545

 1                       SECTION 9
 2
 3     TO AMEND THE 1976 CODE BY ADDING SECTION 59-101-410 SO AS TO PROVIDE THAT THE GOVERNING BOARDS OF
 4     STATE-SUPPORTED COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS MAY LEND THEIR ENDOWMENT FUNDS
 5     AND AUXILIARY ENTERPRISE FUNDS TO SEPARATELY CHARTERED NOT-FOR-PROFIT LEGAL ENTITIES WHOSE
 6     EXISTENCE IS PRIMARILY TO PROVIDE FINANCIAL ASSISTANCE AND OTHER SUPPORT TO THE INSTITUTION AND
 7     ITS EDUCATIONAL PROGRAM, AND TO PROVIDE THE CONDITIONS UNDER WHICH THE FUNDS MAY BE LOANED.
 8
 9     A.  The 1976 Code is amended by adding:
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11           "Section 59-101-410.      (A) As used in this section,  auxiliary enterprise funds' means athletics revenues and funds derived from
12     bookstore, licensing, vending, concessions, and food service operations.
13
14           (B)  The governing boards of all state-supported colleges, universities, and technical schools may lend from time to time their endowment
15     funds and auxiliary enterprise funds, including interest derived therefrom, currently on deposit with the State Treasurer's Office to separately
16     chartered not-for-profit legal entities whose existence is primarily providing financial assistance and other support to the institution and its
17     educational program.  The governing boards of all state-supported colleges, universities, and technical schools also may lend from time to time
18     their future endowment funds and auxiliary enterprise funds received, including interest derived therefrom, currently on deposit with the State
19     Treasurer's Office to separately chartered not-for-profit legal entities whose existence is primarily to provide financial assistance and other
20     support to the institution and its educational program, provided however, that all of these funds must first be recorded with the State Treasurer's
21     Office.  Income from the loan of auxiliary funds as provided in this section must be used solely for scholarship purposes.  The loans must be
22     in accordance with such terms and conditions as determined by the respective institution's governing body."
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24     B.   This section takes effect July 1, 1998.
25