Page:United States Statutes at Large Volume 100 Part 2.djvu/303

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1405

persistence of the violation, failure, or substantial misrepresentation; and the amount of any losses resulting from the violation, failure, or substantial misrepresentation. The amount of such penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sums owing by the United States to the lender or agency charged, unless the lender or agency has, in the case of a final agency determination, commenced proceedings for judicial review within 90 days of the determination, in which case the deduction may not be made during the pendency of the proceeding. "(h) AUTHORITY OF THE SECRETARY TO IMPOSE AND ENFORCE LIMITATIONS, SUSPENSIONS, AND TERMINATIONS.— "(1) IMPOSITION OF SANCTIONS.—(A) If the Secretary, after a

reasonable notice and opportunity for hearing to an eligible lender, finds that the eligible lender— "(i) has substantially failed— "(I) to exercise reasonable care and diligence in the making and collecting of loans under the provisions of this part, "(II) to make the reports or statements under section 428(a)(4), or "(III) to pay the required loan insurance premiums to d:.mi > any guaranty agency, or "(ii) has engaged in— "(I) fraudulent or misleading advertising or in solicitations that have resulted in the making of loans insured or guaranteed under this part to borrowers who i, are ineligible; or "(II) the practice of making loans that violate the Insurance, certification for eligibility provided in section 428, the Secretary shall limit, suspend, or terminate that lender from participation in the insurance programs operated by guaranty agencies under this part. "(B) The Secretary shall not lift any such limitation, suspension, or termination until the Secretary is satisfied that the lender's failure under subparagraph (A)(i) of this paragraph or practice under subparagraph (A)(ii) of this paragraph has ceased and finds that there are reasonable assurances that the lender will— "(i) exercise the necessary care and diligence, "(ii) comply with the requirements described in subparagraph (A)(i), or "(iii) cease to engage in the practices described in subparagraph (A)(ii), as the case may be. "(2) REVIEW OF SANCTIONS ON LENDERS.—(A) The

Secretary

shall, in accordance with sections 556 and 557 of title 5, United States Code, review each limitation, suspension, or termination imposed by any guaranty agency pursuant to section 428(b)(l)(U) within 60 days after receipt by the Secretary of a notice from the guaranty agency of the imposition of such limitation, suspension, or termination, unless the right to such review is waived in writing by the lender. The Secretary shall disqualify such lender from participation in the student loan insurance program of each of the guaranty agencies under this part, and notify such guaranty agencies of such disqualification—

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