Section 13. Endowment fund.

(1) The sponsoring body shall establish an endowment fund for the university with such amount as may be specified by an order issued by the Government. (2) The endowment fund shall be used as security deposit to ensure that the university complies with the provisions of this Act and rules, Statutes, Ordinances or Regulations made thereunder. (3) The Government shall have the powers to forfeit, in the prescribed manner, a part or whole of the endowment fund in case the university or the sponsoring body contravenes the provisions of this Act and rules, Statutes, Ordinances or Regulations made thereunder. (4) Income from endowment fund may be utilized for development of infrastructure of the university, but shall not be utilized to meet the recurring expenditure of the university. (5) The amount of endowment fund shall be invested by the university until the dissolution of the university, by way of fixed deposit in the Nationalized Bank with Director of Higher Education as joint holder, subject to the condition that the amounts so invested from the fund shall not be withdrawn without the permission of the Government.