Page:United States Statutes at Large Volume 121.djvu/818

 PUBLIC LAW 110–84—SEPT. 27, 2007

121 STAT. 797

lenders that received a designation under subsection (a) of such section prior to October 1, 2007, for the remainder of the year for which the designation was made. SEC. 303. REDUCTION OF LENDER INSURANCE PERCENTAGE.

(a) AMENDMENT.—Subparagraph (G) of section 428(b)(1) (20 U.S.C. 1078(b)(1)(G)) is amended to read as follows: ‘‘(G) insures 95 percent of the unpaid principal of loans insured under the program, except that— ‘‘(i) such program shall insure 100 percent of the unpaid principal of loans made with funds advanced pursuant to section 428(j) or 439(q); and ‘‘(ii) notwithstanding the preceding provisions of this subparagraph, such program shall insure 100 percent of the unpaid principal amount of exempt claims as defined in subsection (c)(1)(G);’’. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall be effective on October 1, 2012, and shall apply with respect to loans made on or after such date.

20 USC 1078 note.

SEC. 304. DEFINITIONS.

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Section 435 (20 U.S.C. 1085) is amended— (1) in subsection (o)(1)— (A) in subparagraph (A)(ii)— (i) by striking ‘‘100 percent of the poverty line for a family of 2’’ and inserting ‘‘150 percent of the poverty line applicable to the borrower’s family size’’; and (ii) by inserting ‘‘or’’ after the semicolon; (B) by striking subparagraph (B); and (C) by redesignating subparagraph (C) as subparagraph (B); (2) in subsection (o)(2), by striking ‘‘(1)(C)’’ and inserting ‘‘(1)(B)’’; and (3) by adding at the end the following: ‘‘(p) ELIGIBLE NOT-FOR-PROFIT HOLDER.— ‘‘(1) DEFINITION.—Subject to the limitations in paragraph (2) and the prohibition in paragraph (3), the term ‘eligible not-for-profit holder’ means an eligible lender under subsection (d) (except for an eligible lender described in subsection (d)(1)(E)) that requests a special allowance payment under section 438(b)(2)(I)(vi)(II) or a payment under section 771 and that is— ‘‘(A) a State, or a political subdivision, authority, agency, or other instrumentality thereof, including such entities that are eligible to issue bonds described in section 1.103–1 of title 26, Code of Federal Regulations, or section 144(b) of the Internal Revenue Code of 1986; ‘‘(B) an entity described in section 150(d)(2) of such Code that has not made the election described in section 150(d)(3) of such Code; ‘‘(C) an entity described in section 501(c)(3) of such Code; or ‘‘(D) a trustee acting as an eligible lender on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C). ‘‘(2) LIMITATIONS.—

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