Page:United States Statutes at Large Volume 106 Part 1.djvu/585

 PUBLIC LAW 102-325-nJULY 23, 1992 106 STAT. 553 "(1) consider the ratio of part B debt repayment to income; or "(2) establish, by regulation, such other indicators of high Regulations. risk as the Secretary considers appropriate "(d) LOAN LIMITATION. —Not more than $200,000,000 may be used to acquire loans under this section in any fiscal year. "(e) AUTHORIZATION OP AppROPRiATiONS.There are authorized to be appropriated to carry out this section such sums as may be necessary for fisced year 1994 and for each of the 4 succeeding fiscal years.". SEC. 430. SPECIAL ALLOWANCES. (a) SPECIAL ALLOWANCE.— Section 438(b)(2) of the Act is 20 USC i087-i. amended— (1) in subparagraph (A)(iii), by striking "3.25" and inserting " 3.10"; (2) by adding at the end of subparagraph (A) the following new sentence: "If such computation produces a number less than zero, such loans shall be subject to section 427A(e)."; (3) in subparagraph (B)(i), by striking "3.25" and inserting "3.10"; and (4) by striking division (ii) of subparagraph (B) and inserting the following: "(ii) The quarterly rate of the special allowance set under division (i) of this subparagraph shall not be less than 9.5 percent minus the applicable interest rate on such loans, divided by 4."; (5) in subparagraph (C)— (A) by inserting "before October 1, 1992," after "made"; (B) by inserting "(i)" before "In"; and (C) by adding at the end the following new clause: "(ii) In the case of loans disbursed on or after October 1, 1992, pursuant to section 428A or 428B for which the interest rate is determined under section 427A(c)(4), a special allowance shall not be paid unless the rate determined for any 12-month period under section 427A(c)(4)(B) exceeds— "(I) 11 percent in the case of a loan under section 428A; or "(II) 10 percent in the case of a loan under section 428B."; (6) in subparagraph (D)(i), by striking "3.25" and inserting " 3.10". (b) SPECIAL ALLOWANCE PERMITTED ON UNSUBSIDIZED LOANS. — Section 438(b)(5)(A)(ii) of the Act is amended by inserting "428H," after "428C,". (c) SPECIAL RULE. — Section 438(b)(5) is amended by adding at the end thereof the following flush sentence: "As used in this section, the term 'eligible loan' includes all loans subject to section 4281.". (d) ORIGINATION FEES. —Section 438(c) is amended— (1) in paragraph (2), by striking "With" and inserting "Subject to paragraph (6) of this subsection, with"; and (2) by adding at the end the following new paragraphs: "(6) SLS AND PLUS LOANS.— With respect to any loans made under section 428A or 428B on or after October 1, 1992, each eligible lender under this part shall charge the borrower an origination fee of 5 percent of the principal amount of the loan, to be deducted proportionately from each installment pay-

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