Page:United States Statutes at Large Volume 100 Part 1.djvu/383

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 347

consolidation loans to eligible borrowers in such State with an eligible lender described in clause (B) or (C) of subsection (a)(1) from another State. "(2) Notice of the hearing required by paragraph (1) of this subsection shall be sent to the Governor of the affected State and the eligible lenders described in subsection (a)(1)(B) for that State. At any such hearing representatives of such Governor and lenders may present evidence and testimony and examine witnesses, and full consideration shall be given to the views of such Governor and lenders with respect to the interests of the eligible borrowers in that State and with respect to the impact on programs of such lenders of allowing a lender described in clause (B) or (C) of subsection (a)(1) from another State to make consolidation loans pursuant to an agreement under this subsection in such State. "(3) An agreement under this subsection may contain such terms and conditions as the Secretary may specifically require of the lender to carry out this section. "(4) The requirements of paragraphs (1) and (2) of this subsection shall not apply if, in any State, an eligible lender described in subsection (a)(1)(B) from another State is functioning as a secondary market described in subparagraph (D) or (F) of section 435(g)(1) prior to the date of enactment of the Student Financial Assistance Amendments of 1985 and such lender agrees to make consolidation loans to eligible borrowers in such State. "(e) The authority to make loans under this section expires at the close of September 30, 1991. Nothing in this section shall be construed to authorize the Secretary to promulgate rules or regulations governing the terms or conditions of the agreements and certificates under subsection (b). Loans made under this section shall not be considered to be new loans made to students for purposes of section 424(a).".

State and local governments,

State and local governments. 20 USC 1085. Ante, p. 339. Termination date.

20 USC 1074. (b) CONFORMING AMENDMENTS.—(1) Section 427(a) of the Act is 20 USC 1077.

amended by striking out "A loan" and inserting in lieu thereof "Except as provided in section 428C, a loan". (2) Section 435(g)(1) of the Act is amended— (A) by striking out "section 439(o) and (q)" in subparagraph (G) and inserting in lieu thereof "sections 428C and 439(q)"; and (B) by striking out "section 428(j)" in subparagraph (H) and inserting in lieu thereof "sections 428(h) and 428C". (3) Section 438 of the Act is amended— (A) in subsection (b)(5)(A)(ii), by inserting ", 428C," after "428B"; and (B) in subsection (c)(2), by striking out "section 428B and section 439(o)" and inserting in lieu thereof "sections 428B and 428C". (4) Section 439(d)(1)(C) of the Act is amended by striking out "428(A), and except with respect to loans under section 439(o),' and inserting in lieu thereof "428A, and except with respect to loans under section 428C,". (c) SPECIAL ALLOWANCE.—(1) Section 438(b)(2)(A) of the Act is amended by striking out "subparagraph (B)" and inserting in lieu thereof "subparagraphs (B) and (C)". (2) The first sentence of section 438(b)(2)(B)(i) of the Act is amended— (A) by inserting "appropriate" before "quarterly rate" the second time it appears; and (B) by inserting "or subparagraph (C)" before the period.

Ante, p. 343.

20 USC 1087-1.

20 USC 1078-2. 20 USC 1087-2.

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