(1) There shall be established an Endowm ent Fund, as soon as may be after coming into force o f this Act w ith an amount o f rupees one crore which has been deposited by the Sponsoring Body with the State Government.
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(2) The Endow m ent Fund shall be used as security deposit to ensure that the University com plies with the provisions o f this Act and functions as per provisions o f this Act, Statutes and Ordinances. The State Government shall have the powers to forfeit in the prescribed m anner, a part or whole o f the Endow m ent fund in case the University or the Sponsoring Body contravenes any o f the provisions o f this Act or Statutes, Ordinances, Regulations or rules made thereunder.
(3) Income from the Endowm ent fund may be utilized for development o f infrastructure o f the University but shall not be utilized to meet out the recurring expenditure o f the university .
(4) The am ount o f the Endowm ent Fund shall be invested and kept invested until the dissolution o f the University in long term securities issued or guaranteed by the State Government or deposited and kept deposited until the dissolution o f the University in the interest bearing Personal Deposit Account o f the Sponsoring Body in the Governm ent Treasury.
(5) In case o f investm ent in long term security, the certificates o f the securities shall be kept in the safe custody o f the State Government and in case o f deposit in the interest bearing personal Deposit account in Government Treasury , the deposit shall be made w ith the condition that the am ount shall not be withdrawn without the perm ission o f the State Government.