Page:United States Statutes at Large Volume 124.djvu/1106

 124 STAT. 1080 PUBLIC LAW 111–152—MAR. 30, 2010 ‘‘(ii) notwithstanding clause (i), as of July 1, 2009— ‘‘(I) is the sole beneficial owner of a loan for which the special allowance rate is calculated under section 438(b)(2)(I)(vi)(II) because the loan is held by an eligible lender trustee that is an eligible not-for-profit holder as defined under sec- tion 435(p)(1)(D); 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; or ‘‘(iii) is an affiliated entity of an eligible not-for- profit servicer described in clause (i) or (ii) that— ‘‘(I) directly employs, or will directly employ (on or before the date the entity begins servicing loans under a contract awarded by the Secretary pursuant to subsection (a)(3)(A)), the majority of individuals who perform borrower-specific student loan servicing functions; and ‘‘(II) as of July 1, 2009, 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 func- tions for loans made under part B of this title. ‘‘(2) AFFILIATED ENTITY.—For the purposes of paragraph (1), the term ‘affiliated entity’— ‘‘(A) means an entity contracted to perform services for an eligible not-for-profit servicer that— ‘‘(i) is a nonprofit entity or is wholly owned by a nonprofit entity; and ‘‘(ii) is not owned or controlled, in whole or in part, by— ‘‘(I) a for-profit entity; or ‘‘(II) an entity having its principal place of business in another State; and ‘‘(B) may include an affiliated entity that is established by an eligible not-for-profit servicer after the date of enact- ment of the SAFRA Act, if such affiliated entity is otherwise described in paragraph (1)(B)(iii)(I) and subparagraph (A) of this paragraph.’’. (b) MANDATORY FUNDS.— (1) AMENDMENTS.—Section 458(a) (20 U.S.C. 1087h(a)) is amended— (A) by redesignating paragraph (5) as paragraph (8); (B) by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; (C) by inserting after paragraph (1) the following new paragraph: ‘‘(2) MANDATORY FUNDS FOR ELIGIBLE NOT-FOR-PROFIT SERVICERS.—For fiscal years 2010 through 2019, there shall be available to the Secretary, in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated, funds to be obli- gated for administrative costs of servicing contracts with eligible not-for-profit servicers as described in section 456.’’; and