Student deposit funds that are not claimed by students may only be used to make TEXAS Grants. If the year-end balance of funds at an institution exceeds 150 percent of the amount its students have forfeited during that year, the excess funds are to be forwarded to the Coordinating Board for disbursement through the TEXAS Grant Program. If an institution established an endowment fund from funds forfeited prior to the end of state Fiscal Year 2001, no additional forfeited funds may be added to the endowment corpus. All forfeited funds and their earnings (including the earnings of the endowment fund) must be used in calculating the year-end balance subject to the 150 percent limit, and are to be used for making need-based grants.

Source Note:The provisions of this §22.235 adopted to be effective August 16, 2004, 29 TexReg 7988.