Page:United States Statutes at Large Volume 100 Part 2.djvu/280

 100 STAT. 1382

PUBLIC LAW 99-498—OCT. 17, 1986

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subparagraphs (A), (B),(G),(R),(S),(T), and (U) of subsection (b)(1); "(B) contain provisions designed to demonstrate the capability of carrying out a necessary and successful program of collection of and preclaim assistance for the loan program subject to that agreement; "(C) set forth an estimate of the costs which are eligible for payment under the provisions of this subsection; "(D) provide for such administrative and fiscal procedures, including an audit, as are necessary to carry out the provisions of this subsection; and "(E) set forth assurances that the guaranty agency will furnish such data and information, including where necessary estimates, as the Secretary may reasonably require, to carry out the provisions of this subsection.

"(g) ACTION ON INSURANCE PROGRAM AND GUARANTY A G R E E -

MENTS.—If a nonprofit private institution or organization— "(1) applies to enter into an agreement with the Secretary under subsections (b) and (c) with respect to a student loan insurance program to be carried on in a State with which the Secretary does not have an agreement under subsection (b), and "(2) as provided in the application, undertakes to meet the requirements of section 422(c)(6)(B)(i), (ii), and (iii), the Secretary shall consider and act upon such application within 180 days, and shall forthwith notify the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives of his actions. "(h) LENDING BY GUARANTY AGENCIES.—

"(1) LENDING FROM SALLIE MAE ADVANCES.—From SUmS advanced by the Association pursuant to section 439(p), each guaranty agency or an eligible lender in a State described in section 435(d)(1)(D) or (F) of the Act is authorized to make loans directly to students otherwise unable to obtain loans under this part. "(2) AMOUNT OF ADVANCES.—(A) Each guaranty agency or an eligible lender in a State described in section 435(d)(1)(D) or (F) which has an application approved under section 439(p)(2) may receive advances under section 439(p) for each fiscal year in an amount necessary to meet the demand for loans under this section. The amount such agency or lender is eligible to receive may not exceed 25 percent of the average of the loans guaranteed by that agency or lender for the 3 years preceding the fiscal year for which the determination is made. Whenever the determination required by the preceding sentence cannot be made because the agency or lender does not have 3 years previous experience, the amount such agency or lender is eligible to receive may not exceed 25 percent of the loans guaranteed under a program of a State of comparable size. "(B) Each guaranty agency and each eligible lender in a State described in section 435(d)(1)(D) or (F) shall repay advances made under section 439(p) in accordance with agreements entered into between the Association and such agency or lender. "(3) LOAN TERM, CONDITIONS, AND BENEFITS.—Loans made pursuant to this subsection shall have the same terms, conditions, and benefits as all other loans made under this part, "(i) MULTIPLE DISBURSEMENT OF LOANS.—

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