Page:United States Statutes at Large Volume 106 Part 1.djvu/659

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 627 or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance, except that this paragraph shall not apply to the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance. "(21) The institution will meet the requirements established by the Secretary, State postsecondary review entities, and accrediting agencies pursuant to part H of this title. "(22) The institution will comply with the refimd poUcy established pursuant to section 4846.". (b) HEARINGS. — Section 487 of the Act is amended— 20 USC 1094. (1) in subsection (b)(2), by striking out "on the record"; and (2) in subsection (c>— (A) in the matter preceding subparagraph (A) of paragraph (1), by striking "is authorized to and inserting "shall"; (B) in paragraph (1)(D), by striking out "on the record," and inserting in ueu thereof a comma; (C) in paragraph (1)(F), by striking out "on the record"; and (D) in paragraph (2)— (i) in subparagraph (A), by striking out "on the record," and inserting in lieu thereof a comma; and (ii) in subparagraph (B)(i), by striking out "on the record," and inserting in lieu thereof a comma. (c) AUDITS; AVAILABILITY OF AUDIT INFORMATION.— Section 487(c)(l)(A)(i) of the Act is amended— (1) by striking "a financial and compliance audit of an eligible institution," and inserting "a financial audit of an eligible institution with regard to the financial condition of the institution in its entirety, and a compliance audit of such institution"; (2) by striking "at least once every 2 years" and inserting "on at least an annual basis"; and (3) by inserting "and shall be available to cognizant guaranty agencies, eligible lenders. State agencies, and the State review entities referred to in subpart 1 of part H" after "submitted to the Secretguy". (d) INFORMATION. —Section 487(c) of the Act is amended— (1) in paragr£mh (1)(B), by inserting ", including any matter the Secretary deems necessary to the sound amninistration of the financial aid programs, such as the pertinent actions of any owner, shareholder, or person exercising control over an eligible institution" before the semicolon at the end thereof; (2) in paragraph (1), by redesignating subparagraphs (C) through (G) as subparagraphs (E) through (1), respectively; (3) by inserting jrfter subparagraph (B) of such paragraph the following new subparagraphs: "(C)(i) except as provided m clause (u), a compliance audit R^uiations. of a third party servicer (other than with respect to the servicer's fimctions as a lender if such functions are otherwise audited under this part and such audits meet the requirements of this clause), wim regard to any contract with an eligible institution, guaranty agency, or lender for administering or servicing any aspect of the student assistance programs under ""
 * (20) The institution will not provide any commission, bonus,

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