Page:United States Statutes at Large Volume 101 Part 1.djvu/377

 PUBLIC LAW 100-50—JUNE 3, 1987

101 STAT. 347

(4) in subsection (d), by striking out "makes the first disbursement of a loan with respect to a borrower" and inserting "notifies a borrower of approval of a loan", (aa) DEFINITIONS.—Section 435 of the Act is amended—

(1) in subsection (b)(3), by inserting before the semicolon the following: ", or in the case of a hospital or health care facility, which provides training of not less than one year for graduates of accredited health professions programs, leading to a degree or certificate upon completion of such training"; (2) in subsection (d)(1)— ,1 (A) by striking out "and" at the end of subparagraph (H); (B) by striking out the period at the end of subparagraph fca; (I) and inserting "; and"; and (C) by inserting after such subparagraph the following: "(J) for purpose of making loans under section 428C, any nonprofit private agency functioning in any State as a secondary market."; (3) in section 435(d)(2)— (A) by striking out "and" at the end of subparagraph (A); ^'•'(B) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof a semicolon; and (C) by inserting after subparagraph (B) the following: "(C) shall make loans to not more than 50 percent of the undergraduate students at the institutions; and "(D) shall not make a loan, other than a loan to a graduate or professional student, unless the borrower has previously received a loan from the school or has been denied a loan by an eligible lender; except that the requirements of subparagraphs (C) and (D) shall not apply with respect to loans made, and loan commitments made, after the date of enactment of the Higher Education Amendments of 1986 and prior to July 1, 1987."; (4) by striking out paragraph (2) of subsection (g) and inserting the following: "(2) DISABLED DEPENDENT OF A BORROWER.—Such term when used with respect to a disabled dependent of a borrower means a spouse or other dependent who, during a period of injury or illness of not less than 3 months, requires continuous nursing or similar services."; and (5) by striking out "DEFINITION OF" in the heading of subsection (h). (bb) SPECIAL ALLOWANCES.—Section 438(b) of the Act is amended— (1) by striking out "subsection (c)" in paragraph (2)(B)(iii) and inserting "subsection (d)"; and (2) by inserting after paragraph (6) the following new paragraph:

20 USC 1085.

20 USC 1078-3.

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20 USC lOOl note.

20 USC 1087-1.

"(7) U S E OF AVERAGE QUARTERLY BALANCE.—The Secretary

shall permit lenders to calculate interest benefits and special allowance through the use of the average quarterly balance method until July 1, 1988.". (cc) REPORT ON SPECIAL ALLOWANCES.—Section 438(d)(4)(C) of the Act is amended by striking out ", as evidenced by the information submitted under paragraph (2)(G) of this subsection". (dd) CORRECTION OF REFERENCE.—Section 439(d)(l)(E)(iii) of the Act

is amended by inserting "Labor and" before "Human Resources".

20 USC 1087-2.

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