Page:United States Statutes at Large Volume 106 Part 1.djvu/611

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 579 shall be reduced by the amount returned. The Secretary may waive this paragraph for a specific institution if the Secretary finds that enforcing it is contrary to the interest of the program.". SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION. (a) CAMPUS MATCH. —Section 463(a)(2)(B) of the Act is amended 20 USC i087cc. to read as follows: "(B) a capital contribution— "(i) by an institution that— "(I) is granted permission by the Secretary to participate in an Expanded Lending Option under the program, and "(II) has a default rate which does not exceed 7.5 percent, in an eunoimt not less than the amount of the Federal capital contributions described in subparagraph (A); or "(ii) by any other institution, ID an amount not less than three-seventeenths of such Federal capital contribution in fiscal year 1993, and one-third of such Federeil capital contribution in each of the succeeding fiscal years, of the amount of the Federal capital contributions described in subparagraph (A);". (b) VERIFICATION.— Section 463(c) of the Act is amended— (1) in subparagraph (B) of paragraph (3), by striking ", if that account has not been previously reported by any other holder of the note"; (2) by adding at the end the following new paragraph: "(4) Each institution of higher education, after consultation with the Secretary and pursuant to the agreements entered into under paragraph (1), shall disclose to any credit bureau organization with which the Secretary has such an agreement— "(A) the amount of loans made to any borrower under this part at the time of the disbursement of the loan; and "(B) the information set forth in section 430A(a).". (c) ADDITIONAL RULES.— (1) DEFINITION OF DEFAULT.—Paragraph (11) of section 463A(a) of the Act (20 U.S.C. 1087cc(a)(l)) is amended by 20 USC I087cc-i. striking "including a statement that the default may be" and inserting "together with a statement that the disbursement of, and the default on, a loan under this part, shall be". "(2) ADDITIONAL REQUIREMENTS. —Section 463A of the Act is amended by adding at the end the following new subsections: "(d) LIMITATION ON USE OF INTEREST BEARDJG ACCOUNTS.— In carrying out the provisions of subsection (a)(10), the Secretary may not require that any collection agency, collection attorney, or loan servicer collecting loans made under this part deposit amounts collected on such loans in interest bearing accounts, unless such agency, attorney, or servicer holds such amounts for more than 45 days. "(e) SPECIAL DUE DILIGENCE RULE.— In carrying out the provisions of subsection (a)(5) relating to due diligence, the Secretary shall make every effort to ensure that institutions of higher education may use Internal Revenue Service skip-tracing collection procedures on loans made under this part.".

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