Page:United States Statutes at Large Volume 124.djvu/1105

 124 STAT. 1079 PUBLIC LAW 111–152—MAR. 30, 2010 ‘‘(i) IN GENERAL.—The Secretary shall contract with each eligible not-for-profit servicer to service loans originated under this part, if the servicer— ‘‘(I) meets the standards for servicing Federal assets that apply to contracts awarded pursuant to paragraph (1); and ‘‘(II) has the capacity to service the applicable loan volume allocation described in subparagraph (B). ‘‘(ii) COMPETITIVE MARKET RATE DETERMINATION FOR FIRST 100,000 BORROWER ACCOUNTS.—The Secretary shall establish a separate pricing tier for each of the first 100,000 borrower loan accounts at a competitive market rate. ‘‘(iii) INELIGIBILITY.—An eligible not-for-profit servicer shall no longer be eligible for a contract under this paragraph after July 1, 2014, if— ‘‘(I) the servicer has not been awarded such a contract before that date; or ‘‘(II) the servicer’s contract was terminated, and the servicer had not reapplied for, and been awarded, a contract under this paragraph. ‘‘(B) ALLOCATIONS.— ‘‘(i) IN GENERAL.—The Secretary shall (except as provided in clause (ii)) allocate to an eligible not-for- profit servicer, subject to the contract of such servicer described in subparagraph (A), the servicing rights for the loan accounts of 100,000 borrowers (including borrowers who borrowed loans in a prior year that were serviced by the servicer). ‘‘(ii) SERVICER ALLOCATION.—The Secretary may reallocate, increase, reduce, or terminate an eligible not-for-profit servicer’s allocation of servicing rights under clause (i) based on the performance of such servicer, on the same terms as loan allocations provided by contracts awarded pursuant to paragraph (1).’’; and (2) by adding at the end the following: ‘‘(c) DEFINITION OF ELIGIBLE NOT-FOR-PROFIT SERVICER.—In this section: ‘‘(1) IN GENERAL.—The term ‘eligible not-for-profit servicer’ means an entity— ‘‘(A) that is not owned or controlled in whole or in part by— ‘‘(i) a for-profit entity; or ‘‘(ii) a nonprofit entity having its principal place of business in another State; and ‘‘(B) that— ‘‘(i) as of July 1, 2009— ‘‘(I) meets the definition of an eligible not- for-profit holder under section 435(p), except that such term does not include eligible lenders described in paragraph (1)(D) of such section; and ‘‘(II) was performing, or had entered into a contract with a third party servicer (as such term is defined in section 481(c)) who was performing, student loan servicing functions for loans made under part B of this title;