Page:United States Statutes at Large Volume 100 Part 2.djvu/278

 100 STAT. 1380

PUBLIC LAW 99-498—OCT. 17, 1986

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"(7) N E W PROGRAMS ELIGIBLE FOR lOO PERCENT REINSURANCE.—

(A) Notwithstanding paragraph (1)(B), the amount to be paid a guaranty agency for any fiscal year— "(i) which begins on or after October 1, 1977; and "(ii) which is either the fiscal year in which such guaranty agency begins to actively carry on a student loan insurance program which is subject to a guaranty agreement under subsection (b) of this section, or is one of the 4 succeeding fiscal years, shall be 100 percent of the amount expended by such guaranty agency in discharge of its insurance obligation insured under such program. "(B) The Secretary shall continuously monitor the operations of those guaranty agencies to which the provisions of subparagraph (A) are applicable and revoke the application of such subparagraph to any such guaranty agency which the Secretary determines has not exercised reasonable prudence in the administration of such program. "(8) ASSIGNMENT TO PROTECT FEDERAL FISCAL INTEREST.—If the

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Secretary determines that the protection of the Federal fiscal interest so requires, a guaranty agency shall assign to the Secretary any loan of which it is the holder and for which the Secretary has made a payment pursuant to paragraph (1) of this subsection. "(9) REINSURANCE FEES.—(A) Any guaranty agency which has entered into an agreement with the Secretary pursuant to this subsection shall pay to the Secretary during each fiscal year a reinsurance fee in an amount equal to— "(i) 0.25 percent of the total principal amount of the loans upon which insurance was issued by such agency during such fiscal year, in any fiscal year other than a fiscal year described in clause (ii); or "(ii) 0.5 percent of the total principal amount of the loans upon which insurance was issued by such agency during such fiscal year, in any fiscal year with respect to which the Secretary reimbursed the agency for any losses (resulting from the default of the borrower) pursuant to paragraph (I)(B) of this subsection. "(B) The amount to be paid pursuant to subparagraph (A) may be paid from any funds available to the guaranty agency. "(C) When the Secretary first reimburses a guaranty agency pursuant to paragraph (1)(B) of this subsection, the Secretary shall notify such agency of the exact date of such reimbursement. "(d) USURY LAWS INAPPUCABLE.—No provision of any law of

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United States (other than this Act) or of any State (other than a statute applicable principally to such State's student loan insurance program) which limits the rate or amount of interest payable on loans shall apply to a loan— "(1) which bears interest (exclusive of any premium for insurance) on the unpaid principal balance at a rate not in excess of the rate specified in this part; and "(2) which is insured (i) by the United States under this part, or (ii) by a guaranty agency under a program covered by an agreement made pursuant to subsection (b) of this section. "(e) PAYMENTS FOR LENDER REFERRAL SERVICES.—

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