Page:United States Statutes at Large Volume 100 Part 2.djvu/256

 100 STAT. 1358

PUBLIC LAW 99-498—OCT. 17, 1986

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General taking into account the requirements of State law as in effect on the date of enactment of the Higher Education Amendments of 1986; "(B) shall not seek repayment of such advances from any State described in subsection (c)(5)(B) during any year of its eligibility under such subsection; and "(C) shall not seek repayment of such advances from any State if such repayment encumbers the reserve fund requirement of State law as in effect on such date of enactment. "EFFECTS OF ADEQUATE NON-FEDERAL PROGRAMS

20 USC 1073.

"SEC. 423. (a) FEDERAL INSURANCE BARRED TO LENDERS WITH ACCESS TO STATE OR PRIVATE INSURANCE.—Except as provided in

subsection (b), the Secretary shall not issue certificates of insurance under section 429 to lenders in a State if the Secretary determines that every eligible institution has reasonable access in that State to a State or private nonprofit student loan insurance program which is covered by an agreement under section 428(b). "(b) EXCEPTIONS.—The Secretary may issue certificates of insurance under section 429 to a lender in a State— "(1) for insurance of a loan made to a student borrower who does not, by reason of the borrower's residence, have access to • loan insurance under the loan insurance program of such State ""i- (or under any private nonprofit loan insurance program which has received an advance under section 422 for the benefit of y students in such State); ^ "(2) for insurance of all the loans made to student borrowers by a lender who satisfies the Secretary that, by reason of the residence of such borrowers, such lender will not have access to any single State or nonprofit private loan insurance program which will insure substantially all of the loans such lender ^ intends to make to such student borrowers; or "(3) under such circumstances as may be approved by the ' guaranty agency in such State, for the insurance of a loan to a borrower for whom such lender previously was issued such a •'^ certificate if the loan covered by such certificate is not yet repaid. "SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM 20 USC 1074.

"SEC. 424. (a) LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL INSURANCE.—The total principal amount of new loans

made and installments paid pursuant to lines of credit (as defined in section 435) to students covered by Federal loan insurance under this part shall not exceed $2,000,000,000 for the period from July 1, 1976, to September 30, 1976, and for each of the succeeding fiscal years ending prior to October 1, 1992. Thereafter, Federal loan insurance pursuant to this part may be granted only for loans made (or for loan installments paid pursuant to lines of credit) to enable students, who have obtained prior loans insured under this part, to continue or complete their educational program; but no insurance may be granted for any loan made or installment paid after September 30, 1997. "(b) APPORTIONMENT OF AMOUNTS.—The Secretary may, if he or

she finds it necessary to do so in order to assure an equitable

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