Page:United States Statutes at Large Volume 100 Part 2.djvu/320

 100 STAT. 1422

PUBLIC LAW 99-498—OCT. 17, 1986

' * on behalf of the Association or any eligible lender as defined in section 435(a) may be perfected either through the taking of '^* possession of such loans or by the filing of notice of such security interest in such loans in the manner provided by such State law for perfection of security interests in accounts. "(4) FORM OF SECURITIES.—Securities issued pursuant to the

offering of participations or pooled interests under paragraph (1) of this subsection may be in the form of debt obligations, or trust certificates of beneficial ownership, or both. Student loans set aside pursuant to the offering of participations or pooled interests shall at all times be adequate to ensure the timely principal and interest payments on such securities. •

"(5) RESTRICTIONS ON FACILITIES AND HOUSING ACTIVITIES.—Not

less than 75 percent of the aggregate dollar amount of obligations bought, sold, held, insured, underwritten, and otherwise supported in accordance with the authority contained in paragraph (I)(C) shall be obligations which are listed by a nationally recognized statistical rating organization at a rating below the third highest rating of such organization. Securities.

"(e) ADVANCES TO LENDERS T H A T D O N O T DISCRIMINATE.—The

Association, pursuant to such criteria as the Board of Directors may prescribe, shall make advances on security or purchase student loans pursuant to subsection (d) only after the Association is assured that the lender (1) does not discriminate by pattern or practice against any particular class or category of students by requiring that, as a condition to the receipt of a loan, the student or his family maintain a business relationship with the lender, except that this clause shall not apply in the case of a loan made by a credit union, savings and loan association, mutual savings bank, institution of higher education, or any other lender with less than $75,000,000 in deposits, and (2) does not discriminate on the beisis of race, sex, color, creed, or national origin. "(f) STOCK OF THE ASSOCIATION.— "(1) COMMON STOCK TO INSURED LENDERS AND ELIGIBLE INSTITU-

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TiONS ONLY.—The Association shall have common stock having such par value as may be fixed by its Board of Directors from time to time which may be issued only to lenders under this part, pertaining to guaranteed student loans, who are qualified as insured lenders under this part or who are eligible institutions, as defined in section 435(a), other than an institution outside of the United States. "(2) VOTING RIGHTS.—Each share of common stock shall be entitled to one vote with rights of cumulative voting at all elections of Directors. Voting shall be by classes as described in subsection (c)(3). "(3) NUMBER OF SHARES; TRANSFERABILITY.—The maximum

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number of shares of common stock that the Association may issue and have outstanding at any one time shall be fixed by the Board of Directors from time to time. Any common share issued shall be fully transferable, except that, as to the Association, it shall be transferred only on the books of the Association. "(4) DIVIDENDS.—To the extent that net income is earned and realized, subject to subsection (g)(2), dividends may be declared on common stock and nonvoting common stock by the Board of Directors. Such dividends as may be declared by the Board shall be paid to the holders of outstanding shares of common stock and nonvoting common stock, except that no such dividends

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