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I think the situation can vary. Sometimes the university does not recognize the chapter, but the national organization does. This is usually because of a dispute between the parties and likely the GLO not removing their charter as the university sees fit.
There are also probably instances of both the university and the national organization not recognizing the group, but they continue to try to exist.
Regardless, most groups that try to pull this off end up dying off quickly or see a slow withering away.
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