Page:United States Statutes at Large Volume 72 Part 1.djvu/1626

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PUBLIC LAW 85-864-SEPT. 2, 1958

[72 S T A T.

1»AYMENT OF FEDERAL CAPITAL CONTRIBUTIONS

SEC. 203. (a) The Commissioner shall from time to time set dates by which institutions of higher education in a State must tile applications for Federal capital contributions from the allotment of such State. I n the event the total requested in such applications, which are made by institutions with which he has agreements under this title and which meet the requirements established in regulations of the Commissioner, exceeds the amount of the allotment of such State available for such purpose, the Federal capital contribution from such allotment to each such institution shall bear the same ratio to the amount requested in its application as the amount of such allotment available for such purpose bears to the total requested in all such applications. I n the event the total requested in such applications which are made by institutions in a State is less than the amount of the allotment of such State available for such purpose, the Commissioner may reallot the remaining amount from time to time, on such date or dates as the Commissioner may fix, to other States in proportion to the original allotments to such States under section 202 for such year. The Federal capital contribution to an institution shall be paid to it from time to time in such installments as the Commissioner determines will not result in unnecessary accumulations in the student loan fund established under its agreement under this title. (b) In no case may the total of such Federal capital contributions to any institution of higher education for any fiscal year exceed $250,000. CONDITIONS OF AGREEMENTS

SEC. 204. An agreement wth any institution of higher education for Federal capital contributions by the Commissioner under this title shall— (1) provide for establishment of a student loan fund by such institution; (2) provide for deposit in such fund of (A) the Federal capital contributions, (B) an amount, equal to not less than one-ninth of such Federal contributions, contributed by such institution, (C) collections of principal and interest on student loans made from such fund, and (D) any other earnings of the fund; (3) provide that such student loan fund shall be used only for loans to students in accordance with such agreement, for capital distributions as provided in this title, and for costs of litigation arising in connection with the collection of any loan from the fund or interest on such loan; (4) provide that in the selection of students to receive loans from such student loan fund special consideration shall be given to (A) students wnth a superior academic background who express a desire to teach in elementary or secondary schools, and (B) students whose academic background indicates a superior capacity or preparation in science, mathematics, engineering, or a modern foreign language; and (5) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this title and as are agreed to by the Commissioner and the institution. T E R M S O F LOANS

SEC. 205. (a) The total of the loans for any fiscal year to any student made by institutions of higher education from loan funds established pursuant to agreements under this title may not exceed $1,000, and

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