Page:United States Statutes at Large Volume 106 Part 1.djvu/580

 106 STAT. 548 PUBLIC LAW 102-325—JULY 23, 1992 the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate, "(o) CONSEQUENCES OP GUARANTY AGENCY INSOLVENCY.— In the event that the Secretary has determined that a guaranty agency is unable to meet its insurance obligations under this part, the holder of loans insured by the guaranty agency may submit insurance claims directly to the Secretary and the Secretary shall pay to the holder the fall insurance obligation of the guaranty agency, in accordance with insurance requirements no more stringent than those of the guarsinty agency. Such arrangements shall continue until the Secretary is satisfied that the insurance obligations have been transferred to another gueirantor who can meet those obligations or a successor will assume the outsteinding insurance obligations. "(p) REPORTING REQUIREMENT. — A ll officers and directors, and those employees and paid consultants of eligible institutions, eligible lenders, guaranty agencies, loan servicing agencies, accrediting agencies or associations. State hcensing agencies or boards, State postsecondary reviewing entities designated under subpart 1 of part H, and entities acting as secondary markets (including the Student Loan Marketing Association), who are engaged in making decisions as to the administration of any program or funds under this title or as to the eligibility of any entity or individual to participate xinder this title, shall report to the Secretary, in such manner and at such time as the Secretary shall require, on any financial interest which such individual may hold in any other entity participating in any program assisted under this title. ". SEC. 426. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS. (a) REQUIRED DISCLOSURE BEFORE DISBURSEMENT. — Section 433(a) of the Act (20 U.S.C. 1083) is amended— (1) by redesignating paragraphs (1) through (13) as paragraphs (2) through (14), respectively; and (2) by inserting before paragraph (2) (as redesignated in subpgiragraph (A)) the following new paragraph: "(1) a statement prominently and clearly displayed and in bold print that the borrower is receiving a loan that must be repaid;". (b) REQUIRED DISCLOSURE BEFORE REPAYMENT. — Section 433(b) of the Act is amended— (1) in the matter preceding psiragraph (1), by striking the second sentence and inserting the following: "For any loan made, insured, or guaranteed under this part, other than a loan made under section 428B or 428C, such disclosure required by this subsection shall be made not less than 60 days nor more than 240 days before the first payment on the loan is due from the borrower."; and (2) in paragraph (8), by inserting "except as provided in sul3section (e)," before "the projected". (c) SPECIAL RULES. —Section 433 of the Act is further amended by adding at the end the following new subsections: "(e) SPECIAL DISCLOSURE RULES ON SLS LOANS AND PLUS LOANS AND UNSUBSIDIZED LOANS. —Loans made under section 428A, 428B, and 428H shall not be subject to the disclosure of projected monthly payment amounts required under subsection (b)(8) if the lender, in lieu of such disclosure, provides the borrower with sample projec-

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