Page:United States Statutes at Large Volume 112 Part 2.djvu/807

 PUBLIC LAW 105-244—OCT. 7, 1998 112 STAT. 1691 lender has elected to make under the agency's insurance program via standard reporting formats, with such reporting to occur at reasonable and standard intervals. " (2) LIMITATIONS ON BLANKET CERTIFICATE OF GUARANTY. — (A) An eligible lender may not make a loan to a borrower under this section after such lender receives a notification from the guaranty agency that the borrower is not an eligible borrower. "(B) A guaranty agency may establish limitations or restrictions on the number or volume of loans issued by a lender under the blanket certificate of guaranty. "(3) PARTICIPATION LEVEL. —During fiscal years 1999 and 2000, the Secretary may permit, on a pilot basis, a limited number of guaranty agencies to offer blanket certificates of guaranty under this subsection. Beginning in fiscal year 2001, any guaranty agency that has an insurance program agreement with the Secretary may offer blanket certificates of guaranty under this subsection. "(4) REPORT REQUIRED. —The Secretary shall, at the conclusion of the pilot program under paragraph (3), provide a report to the Committee on Education and the Workforce of the House of Representatives and the Committee on Labor and Human Resources of the Senate on the impact of the blanket certificates of guaranty on program efficiency and integrity.". SEC. 418. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES. Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting after section 428 (20 U.S.C. 1078) the following: "SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY 20 USC 1078-1. AGENCIES. " (a) VOLUNTARY AGREEMENTS.— "(1) AUTHORITY.— Subject to paragraph (2), the Secretary may enter into a voluntary, flexible agreement with a guaranty agency under this section, in lieu of agreements with a guaranty agency under subsections (b) and (c) of section 428. The Secretary may waive or modify any requirement under such subsections, except that the Secretary may not waive— "(A) any statutory requirement pertaining to the terms and conditions attached to student loans or default claim payments made to lenders; or "(B) the prohibitions on inducements contained in section 428(b)(3) unless the Secretary determines that such a waiver is consistent with the purposes of this section and is limited to activities of the guaranty agency within the State or States for which the guaranty agency serves as the designated guarantor. "(2) SPECIAL RULE.— If the Secretary grants a waiver pursuant to paragraph (1)(B), any guaranty agency doing business within the affected State or States may request, and the Secretary shall grant, an identical waiver to such guarsoity agency under the same terms and conditions (including service area limitations) as govern the original waiver. " (3) ELIGIBILITY.— During fiscal years 1999, 2000, and 2001, the Secretary may enter into a voluntary, flexible agreement with not more than 6 guaranty agencies that had 1 or more agreements with the Secretary under subsections (b) and (c)

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