Page:United States Statutes at Large Volume 100 Part 2.djvu/316

 100 STAT. 1418

PUBLIC LAW 99-498—OCT. 17, 1986

of compliance by the Authority with the provisions of the plan. "(3) NONDISCRIMINATION.—In order for the holders of loans V which were made or purchased with funds obtained by the holder from an Authority issuing obligations, the income from which is exempt from taxation under the Internal Revenue 26 USC 1 et seq. Code of 1954, to be eligible to receive a special allowance under subsection (b)(2) of this section on any such loans, the Authority shall not engage in any pattern or practice which results in a denial of a borrower's access to loans under this part because of the borrower's race, sex, color, religion, national origin, age, handicapped status, income, attendance at a particular eligible institution within the area served by the Authority, length of the borrower's educational program, or the borrower's academic year in school. "(4) REPORT BY THE SECRETARY.—The Secretary shall, no later than September 30, 1988, and each succeeding September 30th, r submit a report to the Committee on Education and Labor of the House of Representatives and the Committee on Labor and r-' ^ ' Human Resources of the Senate specifying— "(A) the amount of student loan credit provided through the use of tax-exempt obligations for the most recent fiscal year; I "(B) an assessment of the impact of the availability of such financing on the availability of student credit in the '" areas served by the authorities issuing such obligations; ' "(C) an assessment of the need for additional tax-exempt financing for student credit for the next fiscal year, as evidenced by the information submitted under paragraph (2)(G) of this subsection; and "(D) any other information determined by the Secretary to be relevant to the purposes of the report. "(e)
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REGULATIONS TO PREVENT DENIAL OF LOANS TO ELIGIBLE

STUDENTS.—The Secretary shall adopt or amend appropriate regulations pertaining to programs carried out under this part to prevent, where practicable, any practices which the Secretary finds have denied loans to a substantial number of eligible students. STUDENT LOAN MARKETING ASSOCIATION 20 USC 1087-2.

Insurance.

II

"SEC. 439. (a) PURPOSE.—The Congress hereby declares that it is the purpose of this section (1) to establish a private corporation which will be financed by private capital and which will serve as a secondary market and warehousing facility for student loans, including loans which are insured by the Secretary under this part or by a guaranty agency, and which will provide liquidity for student loan investments; (2) in order to facilitate secured transactions involving student loans, to provide for perfection of security interests in student loans either through the taking of possession or by notice filing; and (3) to assure nationwide the establishment of adequate loan insurance programs for students, to provide for an additional program of loan insurance to be covered by agreements with the Secretary. "(b) ESTABLISHMENT.—

District of eolumbia.

"(1) IN GENERAL.—There is hereby created a body corporate to be known as the Student Loan Marketing Association (hereinafter referred to as the 'Association'). The Association shall

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