Page:United States Statutes at Large Volume 78.djvu/957

 78 STAT. ]

PUBLIC LAW 88-581-SEPT. 4, 1964

determined by estimating the average yield to maturity, on the basis of daily closing market quotations or prices during the preceding May on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May, and hj rounding oft' such estimated average annual yield to the next higher multiple of one-eighth of 1 per centum; "(6) such a loan shall be made without security or endorsement, except that if the borrower is a minor and the note or other evidence of obligation executed by him would not, under the applicable law, create a binding obligation, either security or endorsement may be required; "(7) no note or other evidence of any such loan may be transferred or assigned by the school making the loan except that, if the borrower transfers to another school participating in the program under this part, such note or other evidence of a loan may be transferred to such other school. "(c) Where all or any part of a loan, or interest, is canceled under this section, the Secretary of Health, Education, and Welfare shall pay to the school an amount equal to the school's proportionate share of the canceled portion, as determined by the Secretary. " (d) Any loan for any year by a school from a student loan fund established pursuant to an agreement under this part shall be made in such installments as may be provided in regulations of the Secretary or such agreement and, upon notice to the Secretary by the school that any recipient of a loan is failing to maintain satisfactory standing, any or all further installments of his loan shall be withheld, as may be appropriate. "(e) A n agreement under this part with any school shall include provisions designed to make loans from the student loan fund established thereunder reasonably available (to the extent of the available funds in such fund) to all eligible students in the school in need thereof. '^AUTHORIZATION OF APPROPRIATIONS FOR LOANS

"SEC. 824. There are authorized to be appropriated to the Secretary of Health, Education, and Welfare for Federal capital contributions to student loan funds pursuant to section 8 2 2 (b)(2)(A) $3,100,000 for the fiscal year ending June 30, 1965, $8,900,000 for the fiscal year ending June 30, 1966, $16,800,000 for the fiscal year ending June 30, 1967, $25,300,000 for the fiscal year ending June 30, 1968, $30,900,000 for the fiscal year ending June 30, 1969, and such sums for the fiscal year ending June 30, 1970, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan for any academic year ending before July 1, 1969, to continue or complete their education. Sums appropriated pursuant to this section for any fiscal year shall be available, in accordance with agreements under this part, for Federal capital contributions to schools with which such agreements have been made, to be used, together with deposits in such fund pursuant to section 822(b)(2)(B), for establishment and maintenance of student loan funds. " A IX O T M E N T S A N D P A Y M E N T S O F FEDERAL CAPITAL CONTRIBUTIONS

"SEC. 825. (a) Sums appropriated pursuant to section 824 for any fiscal year shall be allotted by the Secretary of Health, Education, and Welfare among the States as follows: (1) He shall allot to esuch. State an amount which bears the same ratio to 50 per centum of such sums as the number of students who graduated from secondary schools

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