Page:United States Statutes at Large Volume 106 Part 3.djvu/227

 PUBLIC LAW 102-408—OCT. 13, 1992 106 STAT. 2021 I)rovide such school with a hearing conducted by an administrative aw judge. "SEC. 728. DISTRTOUTION OF ASSETS FROM LOAN FUNDS. 42 USC 2l»2x. " (a) DISTRIBUTION AFTER TERMINATION OF FUND. —I f a school terminates a loan fund established under an agreement pursuant to section 721(b), or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows: "(1) The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termination of the fund as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 721(b)(2)(A) bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to section 721(b)(2)(B). "(2) The remainder of such balance shall be paid to the school. "(b) PAYMENT OF PROPORTIONATE SHARE TO SECRETARY.— I f a capital distribution is made under subsection (a), the school involved shall, after the capital distribution, pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established pursuant to section 721(b) as was determined by the Secretary under subsection (a). •nSEC. 735. GENERAL PROVISIONS. 42 USC 292y. "(a) DATE CERTAIN FOR APPLICATIONS.—The Secretary shall from time to time set dates by which schools must file applications for Federal capital contributions. "(b) CONTINGENT REDUCTION IN ALLOTMENTS.— If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this section for that fiscal year, the allotment to the loan fund of each such school shall be reduced to whichever of the following is the smaller: the amount requested in its application; or an amount which bears the same ratio to the amounts appropriated as the number of students estimated by the Secretary to be enrolled in such school during such fiscal year bears to the estimated total number of students in all such schools during such year. Amounts remaining after allotment under the preceding sentence shall be reallotted in accordance with clause (B) of such sentence among schools whose applications requested more than the amounts so allotted to their loan funds, but with such adjustments as may be necessary to prevent the total allotted to any such school's loan fund from exceeding the total so requested by it. "(c) ALLOTMENT OF EXCESS FUNDS. — Funds available in any fiscal year for payment to schools under this subpart which are in excess of the amount appropriated pursuant to this section for that year shall be allotted among schools in such manner as the Secretary determines will best carry out the purposes of this subpart. " (d) PAYMENT OF INSTALLMENTS TO SCHOOLS.— Allotments to a loan fund of a school shall be paid to it from time to time in such installments as the Secretary determines will not result in unnecessary accumulations in the loan fund at such school. " (e) DISPOSITION OF FUNDS RETURNED TO SECRETARY.—

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