Page:United States Statutes at Large Volume 106 Part 3.djvu/206

 106 STAT. 2000 PUBLIC LAW 102-408—OCT. 13, 1992 students with special circumstances as the school determines appropriate. " (h) DEFINITIONS. —For purposes of this section: term in section 101(18) of title 37, United States Code, except that such term does not include active duty for training. "(2) The term 'Persian Gulf conflict' means the period be^n- ning on August 2, 1990, and ending on the date thereafter prescribed by Presidential proclamation or by law. 42 USC 292e. «SEC. 706. CERTIFICATE OF LOAN INSURANCE; EFFECTIVE DATE OF INSURANCE. "(a) IN GENERAL. — "(1) AUTHORITY FOR ISSUANCE OF CERTIFICATE. —If, upon application by an eligible lender, made upon such form, containing such information, and supported by such evidence as the Secretary may require, and otherwise m conformity with this section, the Secretary finds that the applicant has made a loan to an eligible borrower which is insurable under the provisions of this subpart, he may issue to the applicant a certificate of insurance covering the loan and setting forth the amount and terms of the insurance. "(2) EFFECTIVE DATE OF INSURANCE.—Insurance evidenced by a certificate of insurance pursuant to subsection (a)(1) shall become effective upon the date of issuance of the certificate, except that the Secretary is authorized, in accordance with regulations, to issue commitments with respect to proposed loans, or with respect to lines (or proposed lines) of credit, submitted by eligible lenders, and in that event, upon compliance with subsection (a)(1) by the lender, the certificate of insurance may be issued effective as of the date when any loan, or any payment by the lender pursuant to a line of credit, to be covered by such insurance is made to a student described in section 705(a)(l). Such insurance shall cease to be effective upon 60 days' default by the lender in the payment of any installment of the premiums payable pursuant to section 708. — "(3) CERTAIN AGREEMENTS FOR LENDERS. —An application submitted pursuant to subsection (a)(1) shall contain— "(A) an agreement by the applicant to pay, in accordance with regulations, the premiums fixed by the Secretary pursuant to section 708; and Reports. «(B) an agreement by the applicant that if the loan is covered by insurance the applicant will submit such supplementary reports and statements during the effective period of the loan agreement, upon such forms, at such times, and containing such information as the Secretary may prescribe by or pursuant to regulation. " (b) AUTHORITY REGARDING COMPREHENSIVE INSURANCE COV- ERAGE.— "(1) IN GENERAL.— In lieu of requiring a separate insurance application and issuing a separate certificate of insurance for each loan made by an eligible lender as provided in subsection (a), the Secretary may, in accordance with regulations consistent with section 702, issue to any eligible lender applying therefor a certificate of comprehensive insurance coverage which shall, without further action by the Secretary, insure
 * (1) The term 'active duty* has the meaning given such

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