Page:United States Statutes at Large Volume 100 Part 2.djvu/326

 100 STAT. 1428 State and local governments.

State and local governments.

20 USC 1071 note.

PUBLIC LAW 99-498—OCT. 17, 1986 "(2) ISSUANCE AND COVERAGE OF LOANS,—(A) Whenever

the

Secretary, after consultation with, and with the agreement of, representatives of the guaranty agency in a State, or an eligible lender in a State described in section 435(d)(1)(D), determines that a substantial portion of eligible borrowers in such State or within an area of such State are seeking and are unable to obtain loans under this part, the Association or its designated agent may begin making loans in accordance with this subsection at the request of the Secretary. "(B) Loans made pursuant to this subsection shall be insurable by the agency identified in subparagraph (A) having an agreement pursuant to section 428(b). For loans insured by such agency, the agency shall provide the Association with a certificate of comprehensive insurance coverage, if the Association and the agency have mutually agreed upon a means to determine that the agency has not already guaranteed a loan under this part to a student which would cause a subsequent loan made by the Association to be in violation of any provision under this part. "(3) TERMINATION OF LENDING.—The Association or its designated agent shall cease making loans under this part in any State at such time as it is determined by the Secretary, with regard to loans made under paragraph (1), or by any party to the agreement required by paragraph (2), that— "(A) the conditions which caused the implementation of this subsection have ceased to exist; or ( "(B) the implementation of this subsection has either (i) further reduced the availability of loans from other sources in the applicable geographical area, or (ii) inhibited the formation in a State of an agency which would have an agreement pursuant to section 428(b) of this part which would have the responsibility of developing local sources of funds for student loans.". (b) EFFECTIVE DATES.—The changes made in part B of title IV of the Act by the amendment made by subsection (a) of this section shall take effect on the date of enactment of this Act, except— (1) as otherwise provided in such part B; (2) the changes in sections 427(a)(2)(C) and 428(b)(l)(M) of the Act (other than clause (ix) of each such section) shall apply only to loans made to cover the costs of instruction for periods of enrollment beginning on or after July 1, 1987, to individuals who are new borrowers on that date; (3) the changes made in sections 425(a), 428(b)(l)(A), and .; 428(b)(l)(B) of the Act shall apply with respect only to loans ". made to cover the costs of instruction for periods of enrollment beginning on or after January 1, 1987; (4) the changes made in subsections (a), (b), and (d) of section ^ 433 of the Act shall apply with respect only to loans made to cover the costs of instruction for periods of enrollment beginning on or after January 1, 1987; (5) the changes in section 428(b)(l)(H) shall apply with respect ' only to loans for which the borrower files an application on or ,^ after July 1, 1987; (6) the changes in sections 435(d)(5) and 438(d) of the Act shall take effect 30 days after the date of enactment of this Act; and (7) the changes made in section 438(b) shall take effect with respect to loans made to cover the costs of instruction for

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