Page:United States Statutes at Large Volume 100 Part 2.djvu/338

 100 STAT. 1440

PUBLIC LAW 99-498—OCT. 17, 1986 "(b) AUTHORIZATION OF APPROPRIATIONS.—(1) For the purpose of

enabling the Secretary to make contributions to student loan funds established under this part, there are authorized to be appropriated $268,000,000 for fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years. "(2) In addition there are hereby authorized to be appropriated such sums for fiscal year 1991 and each of the five succeeding fiscal years as may be necessary to enable students who have received loans for academic years ending prior to October 1, 1991, to continue or complete courses of study. "(c) USE OF APPROPRIATIONS.—Any sums appropriated pursuant to subsection O> for any fiscal year shall be available for apportiont) ment pursuant to section 462 and for pa3mients of Federal capital contributions therefrom to institutions of higher education which have agreements with the Secretary under section 463. Such Federal capital contributions and all contributions from such institutions shall be used for the establishment, expansion, and maintenance of student loan funds. " A L L O C A T I O N OF FUNDS

20 USC I087bb.

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462. (a) ALLOCATION BASED ON PREVIOUS ALLOCATION.—(1) From the amount appropriated pursuant to section 461(b) for each fiscal year, the Secretary shall first allocate to each eligible institution an amount equal to— "(A) 100 percent of the amount such institution expended under this part for fiscal year 1985, multiplied by "(B) the institution's default penedty, as determined under subsection (f), except that if the institution which has a default rate in excess of the applicable maximum default rate under subsection (g), the institution may not receive an allocation under this paragraph. "(2)(A) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1985 but is not a first or second time participant, an amount equal to the greater of— "(i) $5,000; or "(ii) 100 percent of the amount received and expended under this part for the first year it participated in the program. "(B) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1985 and is a first or second time participant, an amount equal to the greatest of— "(i) $5,000; "(ii) an amount equal to (I) 90 percent of the amount received and used under this part in the second preceding fiscal year by eligible institutions offering comparable programs of instruction, divided by (II) the number of students enrolled at such comparable institutions in such fiscal year, multiplied by (III) the number of students enrolled at the applicant institution in such fiscal year; or "(iii) 90 percent of the institution's allocation under this part for the preceding fiscal year. "(C) Notwithstanding subparagraphs (A) and (B) of this paragraph, the Secretary shall allocate to each eligible institution which— "(i) was a first-time participant in the program in fiscal year 1986 or any subsequent fiscal year, and "SEC.

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