Page:United States Statutes at Large Volume 79.djvu/1077

 79 STAT. ]

PUBLIC LAW 89-287-OCT. 22, 1965

1037

Public Law 89-287 AN ACT

To establish a system of loan insurance and a supplementary system of direct loans, to assist students to attend post-secondary business, trade, technical, and other vocational schools.

October 22, 1965

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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may. National vocabe cited as the "National Vocational Student Loan Insurance Act of Loan instance 1965".

^^^ °^ 1965. STATEMENT OF PURPOSE A N D APPROPRIATIONS A U T H O R I Z E D

SEC. 2. (a) The purpose of this Act is to enable the Commissioner (1) to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions (as defined in section 17), (2) to provide a Federal program of student loan insurance for students who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement under section 9(b), and (3) to pay a portion of the interest on loans to qualified students which are insured under this Act or under a program of a State or of a nonprofit private institution or organization which meets the requirements of section 9(a)(1)(A). (b) For the purpose of carrying out this Act— (1) there are authorized to be af)propriated to the vocational student loan insurance fund (established by section 13)(A) the sum of $250,000, and (B) such further sums, if any, as may become necessary for the adequacy of the vocational student loan insurance fund, (2) there are authorized to be appropriated, for payments under section 9 with respect to interest on insured loans, such sums for the fiscal year ending June 30, 1966, and succeeding fiscal years, as may be required therefor, and (3) there are authorized to be appropriated the sum of $1,875,000 for making advances pursuant to section 3 for the reserve funds of State and nonprofit private student loan insurance programs. Sums appropriated under clauses (1) and (2) of this subsection shall remain available until expended, and sums appropriated under clause (3) of this subsection shall remain available for advances under section 3 until the close of the fiscal year ending June 30, 1968. ADVANCES FOR RESERVE F U N D S OF STATE A N D N O N P R OF I T PRIVATE LOAN INSURANCE PROGRAMS

SEC. 3. (a)(1) From the sums appropriated pursuant to clause (3) of section 2(b), the Commissioner is authorized to make advances to any State with which he has made an a^eem^nt pursuant to section 9 (D) for the purpose of helping to establish or strengthen the reserve fund of the student loan insurance program covered by that agreement. I f for any of the fiscal years ending June 30, 1966, June 30, 1967, or June 30, 1968, a State does not have a student loan insurance program covered by an agreement pursuant to section 9(b), and the Commissioner determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Commissioner may make advances for such year for the same purpose to one or more nonprofit private institutions or organizations with which he has made an agreement pursuant to section 9(b) in order to enable

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