Page:United States Statutes at Large Volume 122.djvu/3352

 12 2 STA T .3 32 9PUBLIC LA W 11 0– 31 5— AU G .1 4, 200 8(B)bystrik i ng s u b pa ragrap h ( G )an d ins e rting the fol lo w ing

‘(G) AGRE E M E NTWI T HS E C RET A R Y; C O M PL IANCE .— ‘‘(i) AGREEMENT.— E a c h eligible lender ha v ing a winning bid under subparagraph ( F ) shall enter into an agree m ent with the S ecretary under which the eligible lender— ‘‘( I ) agrees to originate eligible Federal PLU S Loans under this paragraph to each borrower who— ‘‘(aa) seeks an eligible Federal PLUS Loan under this paragraph to enable a dependent student to attend an institution of higher edu - cation within the State; ‘‘(bb) is eligible for an eligible Federal PLUS Loan; and ‘‘(cc) elects to borrow from the eligible lender; and ‘‘(II) agrees to accept a special allowance pay- ment (after the application of section 438 (b)( 2 )(I)(v)) from the Secretary with respect to the eligible Federal PLUS Loans originated under subclause (I) in the amount proposed in the second lowest winning bid described in subparagraph (F) for the applicable State auction. ‘‘(ii) C OMPLIANCE.—If an eligible lender with a win- ning bid under subparagraph (F) fails to enter into the agreement re q uired under clause (i) , or fails to comply with the terms of such agreement, the Sec- retary may sanction such eligible lender through one or more of the following: ‘‘(I) T he assessment of a penalty on such eligible lender for any eligible Federal PLUS Loans that such eligible lender fails to originate under this paragraph in accordance with the agreement required under clause (i), in the amount of the additional costs (including the amounts of any increase in special allowance payments) incurred by the Secretary in obtaining another eligible lender to originate such eligible Federal PLUS Loans. The Secretary shall collect such penalty by— ‘‘(aa) reducing the amount of any pay- ments otherwise due to such eligible lender from the Secretary by the amount of the pen- alty; or ‘‘(bb) requesting any other Federal agency to reduce the amount of any payments due to such eligible lender from such agency by the amount of the penalty, in accordance with section 3 716 of title 31, United States Code. ‘‘(II) A prohibition of bidding by such lender in other auctions under this section. ‘‘(III) The limitation, suspension, or termi- nation of such eligible lender ’ s participation in the loan program under part B.

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