Page:United States Statutes at Large Volume 100 Part 2.djvu/255

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1357

"(A) in the case of a State which is actively carrying on a program under an agreement pursuant to section 428(b) which was entered into before October 12, 1976, upon such date as such State may request, but not before October 1, 1977, and on the same day of each of the 2 succeeding calendar years after the date so requested; and "(B) in the case of a State which enters into an agreement pursuant to section 428(b) on or after October 12, 1976, or which is not actively carrying on a program under an agreement pursuant to such section on such date, upon such date as such State may request, but not before October 1, 1977, and on the same day of each of the 4 succeeding calendar years after the date so requested of the advance. "(6) PAYMENT OF ADVANCES WHERE NO STATE PROGRAM.—(A) If

.

for any fiscal year a State does not have a student loan insurance program covered by an agreement made pursuant to section 428(b), and the Secretary determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Secretary may make advances pursuant to this subsection for such year for the same purpose to one or more nonprofit private institutions or organizations with which he has made an agreement pursuant to subsection (c), as well as subsection (b), of section 428 and subparagraph (B) of this paragraph in order to enable students in that State to participate in a program of student loan insurance covered by such agreements. "(B) The Secretary may enter into an agreement with a private nonprofit institution or organization for the purpose of this paragraph under which such institution or organization— "(i) agrees to establish within such State at least one office with sufficient staff to handle written and telephone inquiries from students, eligible lenders, and other persons in the State, to encourage maximum commercial lender participation within the State, and to conduct periodic visits to at least the major eligible lenders within the State; "(ii) agrees that its insurance will not be denied any student because of his or her choice of eligible institutions; and "(iii) certifies that it is neither an eligible institution, nor has any substantial affiliation with an eligible institution. "(d) RECOVERY OF ADVANCES DURING FISCAL YEARS 1988 AND

1989.— "(1) AMOUNT AND USE OF RECOVERED FUNDS.—Notwithstand-

ing any other provision of this section, advances made by the Secretary under this section shall be repaid in accordance with this subsection and shall be deposited in the fund established by section 431. The Secretary shall, in accordance with the requirements of paragraph (2), recover (and so deposit) an amount equal to $75,000,000 during fiscal year 1988 and an amount equal to $35,000,000 for fiscal year 1989. "(2) DETERMINATION OF GUARANTY AGENCY OBLIGATIONS.—In

determining the amount of advances which shall be repaid by a guaranty agency under paragraph (1), the Secretary— "(A) shall consider the solvency and maturity of the reserve and insurance funds of the guaranty agency assisted by such advances, as determined by the Comptroller


 * O' - ";

�