Page:United States Statutes at Large Volume 100 Part 1.djvu/377

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 341

prior to payment to the borrower" and inserting in lieu thereof "which shall be deducted proportionately from each installment payment of the proceeds of the loan to the borrower". (e) CONFORMING AMENDMENTS.—(1) Section 425(a)(1) of the Act is

20 USC 1075.

amended— (A) by inserting "and" at the end of subparagraph (A), by striking out subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B); and (B) by striking out the last sentence. (2) Section 428(a)(3)(A) of the Act is amended— 20 USC 1078. (A) by striking out "Except as provided in paragraph (8) and subject" and inserting in lieu thereof "Subject"; and (B) by striking out "but, except as provided in paragraph (8) of this subsection, such portion" and inserting in lieu thereof "but such portion". (3) Section 428(b)(l)(A) of such Act is amended— (A) by inserting "and" at the end of division (i); (B) by striking out division (ii) and by redesignating division (iii) as division (ii); and (C) in the matter following such division, by striking out "annual limit," and all that follows and inserting in lieu thereof "annual limit;". SEC. 16014. PRECLAIM COLLECTION ACTIVITIES. (a) DELAY REQUIRED BEFORE SUBMISSION OF CLAIMS BY GUARANTY

AGENCIES.—(1) Section 428(c)(l)(A) of the Act is amended by adding 20 USC 1078. at the end thereof the following new sentence: "In no case shall a State or nonprofit private institution or organization with which the Secretary has an agreement pursuant to subsection (b) file a claim for such reimbursement with respect to such losses prior to 270 days after the loan becomes delinquent with respect to any loan installment.". (2) Section 430(e)(2) of the Act is amended— 20 USC 1080. (A) by striking out "one hundred and twenty days" and inserting in lieu thereof "180 days"; and (B) by striking out "one hundred and eighty days" and inserting in lieu thereof "240 days". QD) SUPPLEMENTAL PRECLAIMS ASSISTANCE.—(1) Section 428(c)(6)(A) of the Act is amended— (A) by inserting after "assistance for default prevention," the following: "the administrative costs of supplemental preclaim assistance for default prevention,"; and (B) by striking out "as such terms are defined in subparagraph (B)" and inserting in lieu thereof "as such terms are defined in subparagraph (B) or (C)". (2) Section 428(c)(6) of the Act is amended by adding at the end thereof the following new subparagraph: "(C)(i) For purposes of this paragraph, 'administrative costs of supplemental preclaim assistance for default prevention' means (subject to divisions (ii) through (iv)) any administrative costs— "(I) incurred by a guaranty agency in connection with a loan on which the guarantor has exercised preclaims assistance required or permitted under sections 428(c)(2)(A) and 428(0(2), and which has been in delinquent status for at least 120 days; and

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