Page:United States Statutes at Large Volume 123.djvu/1966

 123STA T . 1 946PUBLIC LA W 111 – 39 —J UL Y 1, 2 0 09 purchase u nd er t h i s para g raph sha l ln o t result in an y net cost to the F ederal G o v ern m ent ( including the cost o f servicing the loans purchased ), as determined j ointly b y the S ecretary, the Secretary of the T reasury, and the D irector of the O ffice of M anagement and B udget .‘ ‘(B) F ED E RAL RE GIST ER NO TI C E. — The Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget shall jointly publish a notice in the Federal R egister prior to any purchase of loans under this paragraph that— ‘‘(i) establishes the terms and conditions governing the purchases authori z ed by this paragraph ‘‘(ii) includes an outline of the methodology and factors that the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget w ill jointly consider in evaluating the price at which to purchase loans rehabilitated pursuant to section 428 F(a); and ‘‘(iii) describes how the use of such methodology and consideration of such factors used to determine purchase price will ensure that loan purchases do not result in any net cost to the Federal Government (including the cost of servicing the loans purchased). ’ ’; and (2) by amending subsection (b) to read as follows ‘‘(b) P ROCEEDS.—The Secretary shall re q uire, as a condition of any purchase under subsection (a), that the funds paid by the Secretary to any eligible lender under this section be used— ‘‘( 1 ) to ensure continued participation of such lender in the Federal student loan programs authorized under part B of this title; and ‘‘(2)( A ) in the case of loans purchased pursuant to sub - section (a)(1), to originate new Federal loans to students, as authorized under part B of this title; or ‘‘(B) in the case of loans purchased pursuant to subsection (a)( 3 ), to originate such new Federal loans to students, or to purchase loans in accordance with section 428F(a).’’. (b) OT H ERA M ENDMENTS.—Part D of title IV (2 0U .S. C . 108 7 a et seq.) is amended— (1) by repealing paragraph (3) of section 4 5 3(c) (20 U.S.C. 1087c(c)); (2) in section 455 (20 U.S.C. 1087e)— (A) in subsection (d)(1)(C), by stri k ing ‘‘428(b)( 9 )(A)(v)’’ and inserting ‘‘428(b)(9)(A)(iv)’’; (B) in subsection (h), by striking ‘‘(e x cept as authorized under section 457(a)(1))’’; and (C) in subsection (k)(1)(B), by striking ‘‘, or in a notice under section 457(a)(1),’’; (3) by repealing section 457 (20 U.S.C. 1087g); and (4) in section 4 6 0 (20 U.S.C. 1087j)— (A) in subsection (c)(1), by adding at the end the fol- lowing: ‘‘ N o borrower may receive a reduction of loan obliga- tions under both this section and section 428 J .’’; and (B) in subsection (g)(2)— (i) by striking subparagraph (A);