Page:United States Statutes at Large Volume 100 Part 1.djvu/389

 100 STAT. 353

PUBLIC LAW 99-272—APR. 7, 1986

"(B) if the institution is not one described in clause (A), the Secretary may— "(i) allow such institution to transfer its interest in such loan to the Secretary, for collection, and the Secretary may use any collections thereon (less an amount not to exceed 30 per centum of any sums collected to cover the Secretary's collection costs) to make allocations to institutions of additional capital contributions in accordance with section 462; or 20 USC I087bb. "(ii) allow such institution to refer such note or agreement to the Secretary, without recompense, except that any sums collected on such a loan (less an amount not to exceed 30 per centum of any sums collected to cover the Secretary's collection costs) shall be repaid to such institution no later than 180 days after collection by the Secretary and treated as an additional capital contribution;". SEC. 16026. REPORTING BY CONSUMER REPORTING AGENCY ON NDSL LOANS. Section 463(c) of the Act is amended by adding at the end the 20 USC 1087cc. following new paragraph: "(3) Notwithstanding paragraphs (4) and (6) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary regarding the status of a borrower's account on a loan made under this part until the later of— "(A) seven years from the date on which the Secretary accepted an assignment or referral of a loan, or "(B) seven years from the date the Secretary first reported the account to a consumer reporting agency, if that account had not been previously reported by any other holder of the note.". SEC. 16027. DEFAULT PENALTY ON NDSL LOANS. Section 463A(a)(7) of the Act is amended by inserting immediately 20 USC I087cc-1. before the semicolon at the end thereof the following: "and a description of any penalty imposed as a consequence of default, such as liability for expenses reasonably incurred in attempts by the Secretary or institutions to collect on a loan". SEC. 16028. NDSL LOAN AGREEMENTS. (a) CHARGES FOR LATE PAYMENTS.—Section 464(c)(l)(H) of the Act 20 USC I087dd. is amended to read as follows: "(H) pursuant to regulations of the Secretary, shall provide for an assessment of a charge with respect to the loan for failure of the borrower to pay all or part of an installment when due, which shall include the expenses reasonably incurred in attempting collection of the loan, to the extent permitted by the Secretary, except that no charge imposed under this clause shall exceed 20 per centum of the amount of the monthly payment of the borrower; and". (b) CONFORMING AMENDMENT.—Section 464(c)(4) of the

Act

is

amended to read as follows: "(4) The institution may elect— "(A) to add the amount of any charge imposed under paragraph (IXH) to the principal amount of the loan as of the first

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