Page:United States Statutes at Large Volume 111 Part 1.djvu/675

 PUBLIC LAW 105-33—AUG. 5, 1997 111 STAT. 651 " (B) USE OF TERMINATION COLLECTIONS.—Any reserve funds directed by the Secretary to be returned to the Secretary under subsection (g)(1)(B) during such period that do not exceed a guaranty agency's required share of recalled reserve funds under paragraph (3)— "(i) shall be used to satisfy the agency's required share of recalled reserve funds; and "(ii) shall be deposited in the restricted account established by the agency under paragraph (4), without regard to whether such funds exceed the next installment required under such paragraph. "(C) USE OF SANCTIONS COLLECTIONS. —Any reserve funds directed by the Secretary to be returned to the Secretary under subsection (g)(1)(C) during such period that do not exceed a guaranty agency's next installment under paragraph (4)— "(i) shall be used to satisfy the agency's next installment; and "(ii) shall be deposited in the restricted account established by the agency under paragraph (4). "(D) BALANCE AVAILABLE TO SECRETARY.— Any reserve funds directed by the Secretary to be returned to the Secretary under subparagraph (B) or (C) of subsection (g)(1) that remain after satisfaction of the requirements of subparagraphs (B) and (C) of this paragraph shall be deposited in the Treasury. "(8) DEFINITIONS.— For the purposes of this subsection: "(A) DEFAULT REDUCTION ACTIVITIES.— The term 'default reduction activities' means activities to reduce student loan defaults that improve, strengthen, and expand default prevention activities, such as— "(i) establishing a program of partial loan cancellation to reward disadvantaged borrowers for good repay- ment histories with their lenders; "(ii) establishing a financial and debt management counseling program for high-risk borrowers that provides long-term training (beginning prior to the jfirst disbursement of the borrower's first student loan and continuing through the completion of the borrower's program of education or training) in budgeting and other aspects of financial management, including debt management; "(iii) establishing a program of placement counseling to assist high-risk borrowers in identifying employ- ment or additional training opportunities; and "(iv) developing public service announcements that would detail consequences of student loan default and provide information regarding a toll-free telephone number established by the guaranty agency for use by borrowers seeking assistance in avoiding default. "(B) RESERVE FUNDS.—The term 'reserve funds' when used with respect to a guaranty agency— "(i) includes any reserve funds in cash or liquid assets held by the guaranty agency, or held by, or under the control of, any other entity; and "(ii) does not include buildings, equipment, or other nonliquid assets.".

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