Page:United States Statutes at Large Volume 106 Part 1.djvu/679

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 647 disapproval of any accreditation agency or association, shall make publicly available the reason for such disapproval, including ref- erence to the specific stsindards under this section which have not been fulfilled. "(o) REGULATIONS.— The Secretary shall by regulation provide procedures for the recognition of accrediting agencies or associations and for the appeed of the Secretary decisions. "Subpart 3—Eligibility and Certification Procedures •SEC. 498. ELIGmiliTY AND CERTIFICATION PROCEDURES. 20 USC 1099c. "(a) GENERAL REQUIREMENT. —For purposes of qualifying institutions of higher education for participation in programs under this title, the Secretary shall determine the legal authority to operate within a State, the accreditation status, and the a^inistrative capability and finsincial responsibility of an institution of higher education in accordance with the requirements of this section. "(b) SINGLE APPLICATION FORM. — The Secretary shall prepare and prescribe a single application form which— "(1) requires sufficient information and documentation to determine that the requirements of eligibility, accreditation, and capability of the institution of higher education are met; "(2) reqiiires a specific description of the relationship between a main campus of an institution of higher education and all of its branches, including a description of the student aid processing that is performed by the main campus and that which is performed at its branches; "(3) requires a description of third party servicers of an institution of higher education, together with a copy of any contract with the institution of higher education and a financial aid service provider or loan servicer; and "(4) requires such other information as the Secretary determines will ensure compliance with the recjuirements of this title with respect to eligibility, accreditation, administrative capabihty and financial responsibility. "(c) FINANCIAL RESPONSIBILITY STANDARDS.— (1) The Secretary shall determine whether an institution has the financial responsibility required by this title on the basis of whether the institution is able— "(A) to provide the services described in its official publications and statements; "(B) to provide the administrative resources necessary to comply with the requirements of this title; and " (C) to meet all of its financial obligations, including (but not limited to) refunds of institutional charges and repayments to the Secretary for Uabilities and debts incurred in programs administered by the Secretary. "(2) Notwithstanding paragraph (1), if an institution fails to meet criteria prescribed by me Secretary with respect to operating losses, net worth, asset-to-liabilities ratios, or operating fund deficits then the institution shall provide the Secretary with satisfactory evidence of its financial responsibility in accordance with paragraph (3). "(3) The Secretary may determine an institution to be financially responsible, notwit^tanding the institution's failure to meet the criteria under paragraphs (1) and (2), if—

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