Page:United States Statutes at Large Volume 112 Part 2.djvu/803

 PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1687 (B) EFFECTIVE DATE.— The amendments made by subparagraph (A) of this paragraph apply to loans for which the first disbursement is made on or after October 1, 1998. (2) NOTICE TO INSTITUTIONS OF DEFAULTS. —Section 428(c)(2) is amended— (A) in subparagraph (A), by striking "proof that reasonable attempts were made" and inserting "proof that the institution was contacted and other reasonable attempts were made"; and (B) in subparagraph (G), by striking "certifies to the Secretary that diligent attempts have been made" and inserting "certifies to the Secretary that diligent attempts, including contact with the institution, have been made". (3) GUARANTY AGENCY INFORMATION TO ELIGIBLE INSTITU- TIONS.—Section 428(c)(2)(H)(ii) is amended to read as follows: "(ii) the guaranty agency shall not require the payment from the institution of any fee for such information; and". (4) FORBEARANCE.— Section 428(c)(3) is amended— (A) in subparagraph (A)(i), by striking "written"; (B) in subparagraph (B), by striking "and" after the semicolon; (C) in subparagraph (C), by striking the period and inserting "; and"; and (D) by inserting before the matter following subparagraph (C) the following: "(D) shall contain provisions that specify that— "(i) forbearance for a period not to exceed 60 days may be granted if the lender reasonably determines that such a suspension of collection activity is warranted following a borrower's request for deferment, forbearance, a change in repayment plan, or a request to consolidate loans, in order to collect or process appropriate supporting documentation related to the request, and "(ii) during such period interest shall accrue but not be capitalized.". (5) EQUITABLE SHARE. —Paragraph (6) of section 428(c) is amended to read as follows: "(6) SECRETARY'S EQUITABLE SHARE.—For the purpose of paragraph (2)(D), the Secretary's equitable share of payments made by the borrower shall be that portion of the payments remaining after the guaranty agency with which the Secretary has an agreement under this subsection has deducted from such payments— "(A) a percentage amount equal to the complement of the reinsurance percentage in effect when payment under the guaranty agreement was made with respect to the loan; and "(B) an amount equal to 24 percent of such payments for use in accordance with section 422B, except that, beginning on October 1, 2003, this subparagraph shall be applied by substituting '23 percent' for *24 percent'.". (6) ASSIGNMENT.— Section 428(c)(8) is amended— (A) by striking "(A) If and inserting "If; and (B) by striking subparagraph (B). Applicability. 20 USC 1078 note. 20 USC 1078. Effective date. Applicability.

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