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MysticCat:
I believe that you are correct.
I work on a college campus, and know that they have actually tossed the idea of getting rid of GLO's around a few times (they won't, but that doesn't stop them from thinking about it).
Technically, they could very well ban GLO's from campus or not recognize them.
They do have the right to do so. They can't stop someone from joining a fraternity, but they can withdrawl their support (money, staff, facilities, perks, meeting space, etc.) Not always, but generally speaking a HQ's will not colonize or operate without the University's support. Just doesn't make for a good partnership, or PR.
Scarry thought, huh?
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