Page:United States Statutes at Large Volume 106 Part 1.djvu/554

 106 STAT. 522 PUBLIC LAW 102-325—JULY 23, 1992 (j) ADDITIONAL GUARANTY AGREEMENT REQUIREMENTS. — Section 20 USC 1078. 428(b)(1) of the Act is amended by striking subparagraphs (W) and (X) and inserting the following: "(W) provides authority for the guaranty agency to require a participation agreement between the guaranty agency and each eligible institution within the State in which it is designated, as a condition for guaranteeing loans made on behalf of students attending the institution; "(X) provides assurances that the agency will implement all requirements of the Secretary for uniform claims and procedures pursuant to section 432(1); and "(Y) provides information to the Secretary in accordance with section 428(c)(10) and maintains reserve funds determined by the Secretary to be sufficient in relation to such agenc/s guarantee obligations.", (k) CONTENTS OF INSURANCE PROGRAM AGREEMENTS.— Section 428(b)(2) of the Act is amended— (1) in subparagraph (C), by striking ", as the Secretary may reasonably require to carry out the Secretary's functions under this part, and inserting ", including financial information, as the Secretary may reasonably require to carry out the Secretary's functions under this part and protect the financial interest of the United States,"; (2) in subparagraph (D)— (A) by striking "at least once every 2 years" in clause (i) and inserting "on at least an annual basis"; (B) by striking "guid" at the end of clause (ii); (3) in subparagraph (E)— (A) by inserting "(i)" after the subparagraph designation; (B) by striking the period at the end thereof and inserting a semicolon and "and"; and (C) by adding at the end the following new clause: "(ii) provide that the lender (or the holder of the loan) shall, not later than 120 days after the borrower has left the eligible institution, notify the borrower of the date on which the repayment period begins; and"; and (4) inserting at the end thereof the following new subparagraph: "(F) provide that, if the sale, other transfer, or assignment of a loan made under this part to another holder will result in a change in the identity of the party to whom the borrower must send subsequent payments or direct any communications concerning the loans, then— "(i) the transferor and the transferee will be required, not later than 45 days from the date the transferee acquires a legally enforceable right to receive payment from the borrower on such loan, each to provide a separate notice to the borrower of— "(I) the sale or other transfer; "(II) the identity of the transferee; "(III) the name and address of the party to whom subsequent payments or communications must be sent; and "(IV) the telephone numbers of both the transferor and the transferee; and "(ii) the transferor wili be required to notify the guaranty agency, and, upon the request of an institu-

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