Page:United States Statutes at Large Volume 100 Part 2.djvu/339

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1441

"(ii) received a larger amount under this subsection in the second year of participation, an amount equal to 90 percent of the amount it received under this subsection in its second year of participation. "(D) For any fiscal year after a fiscal year in which an institution receives an allocation under subparagraph (A), (B), or (C), the Secretary shall allocate to such institution an amount equal to the product of— "(i) the amount determined under subparagraph (A), (B), or (C), multiplied by "(ii) the institution's default penalty, 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. "(3)(A) If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1) of this subsection, then the amount of the allocation to each such institution shall be ratably reduced. "(B) If the amount appropriated for any fiscal year is more than the amount required to be allocated to all institutions under paragraph (1) but less than the amount required to be allocated to all institutions under paragraph (2), then— "(i) the Secretary shall allot the amount required to be allocated to all institutions under paragraph (1), and "(ii) the amount of the allocation to each institution under paragraph (2) shall be ratably reduced. "(C) If additional amounts are appropriated for any such fiscal year, such reduced amounts shall be increased on the same basis as they were reduced (until the amount allocated equals the amount required to be allocated under paragraphs (1) and (2) of this subsection). "(b) ALLOCATION OF EXCESS BASED ON PRO RATA SHARE.—From

one-quarter of the remainder of the simount appropriated pursuant to section 461(b) for any fiscal year (after making the allocations required by subsection (a) of this section), the Secretary shall allocate to each eligible institution an amount which bears the same ratio to such one-quarter as— "(1) the amount the eligible institution receives for such fiscal year under subsection (a), bears to "(2) the amount all such institutions receive under such subsection (a). "(c) ALLOCATION OF EXCESS BASED ON SHARE OF EXCESS ELIGIBLE

AMOUNTS.—(1) From three-quarters of the remainder of the amount appropriated pursuant to section 461(b) after making the allocations required by subsection (a) of this section, the Secretary shall allocate to each eligible institution which has an excess eligible amount an amount which bears the same ratio to such remainder as such excess eligible amount bears to the sum of the excess eligible amounts of all such eligible institutions (having such excess eligible amounts). "(2) For any eligible institution, the excess eligible amount is the amount, if any, by which— "(A)(i) that institution's eligible amount (as determined under paragraph (3)), divided by (ii) the sum of the eligible amounts of all institutions (as so determined), multiplied by (iii) the amount

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