Page:United States Statutes at Large Volume 107 Part 1.djvu/380

 107 STAT. 354 PUBLIC LAW 103-66—AUG. 10, 1993 for which administrative expenses under this section are made available. "(d) NOTIFICATION. — In the event the Secretary finds it necessary to use the authority provided to the Secretary under subsection (a) to draw funds for administrative expenses irom a fiiture yeaj^B funds, no funds may be expended under this section unless the Secretary immediately notifies the Committees on Appropriations of the Senate and of the House of Representatives, and the Labor and Humem Resources Committee of the Senate and the Education and Labor Committee of the House of Representatives, of such action and explain the reasons for such action.". CHAPTER 2—CONFORMING AMENDMENTS TO THE HIGHER EDUCATION ACT OF 1965 SEC. 4041. PRESERVING LOAN ACCESS. (a) ADVANCES TO GUARANTY AGENCIES FOR LENDER-OF-LAST- RESORT SERVICES. — (1) AMENDMENT.— Section 428(j) of the Act (20 U.S.C. 1078(1)) is amended by striking paragraph (3) and inserting the following: LAST-RESORT SERVICES DURING TRANSITION TO DIRECT LEND- ING.^A) In order to ensure the availability of loan capital during the transition from the Federal Family Education Loan Program under this part to the Federal Direct Student Loan Program under part D of this title, the Secretary is authorized to provide a guaranty agency with additional advance funds in accordance with section 422(c)(7), with such restrictions on the use of such funds as are determined appropriate by the Secretary, in order to ensure that the guaranty agency will make loans as the lender-of-last-resort. Such agency shall make such loans in accordance with this subsection and the requirements of the Secretary. " (B) Notwithstanding any other provision in this part, a guaranty agency serving as a lender-of-last-resort under this paragraph shall be paid a fee, established by the Secretary, for making such loans in lieu of interest and special allowance subsidies, and shall be required to assign such loans to the Secretary on demeind. Upon such assignment, the portion of the advance represented by the loans assigned shall be considered repaid by such guaranty agency.". (2) CONFORMING AMENDMENTS.— (A) ADVANCES TO GUARANTEE AGENCIES. — Section 422(c)(7) of the Act (20 U.S.C. 1072(c)(7)) is amended by striking all beginning with "to a guaranty agency" through the period and inserting "to a guaranty agency— "(A) in accordance with section 428(j), in order to ensure that the guaranty agency shall make loans as the lender-of-last-resort during the transition from the Federal Family Education Losin Program under this part to the Federal Direct Student Loan Program under part D of this title; or "(B) if the Secretary is seeking to terminate the guaranty agency's agreement, or assuming the guaranty agency's functions, in accordance with section 428(c)(10XFXv), in order to assist the agency in meeting its immediate
 * (3) ADVANCES TO GUARANTY AGENCIES FOR LENDER-OF-

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