Page:United States Statutes at Large Volume 82.djvu/1063

 82 STAT. ]

PUBLIC LAW 90-575-OCT. 16, 1968

(b)(1) Section 421(b)(2) of the Higher Education Act of 1965 is amended by inserting after "on student loans" the following: "and for payments under section 437". (2) Section 4 2 7 (a)(2)(E) of such Act is amended by inserting after the comma at the end thereof the following: "and that the lender will enter into such agreements with the Commissioner as may be necessary for the purpose of section 437,". (3) Section 428(b)(2)(B) of such Act is amended by inserting after "of this part" the following: ", including such provisions as may be necessary for the purpose of section 437,". (4) Section 428(c) of such Act is amended by striking out in paragraph (1) ", death, or permanent and total disability", by striking the last sentence of paragraph (3), and by amending paragraph (4) to read as follows: "(4) For purposes of this subsection, the terms 'insurance beneficiary' and 'default' shall have the meanings assigned to them by section 430(e)." (5) Section 430 of such Act is amended—

1021 79 Stat. 1236. 20 USC 1071. ^"^^' ^- ^°2°' 20 USC 1077.

20 USC io78. Ante, p. i536.

20 USC 1080.

(A) by striking out in the section heading, "DEATH, OR DISABILITY";

(B) by striking out in the first sentence of subsection (a) "or upon the death of the student borrower or a finding by the insurance beneficiary that the borrower has become totally and permanently disabled (as determined in accordance with regulations established by the Commissioner) before the loan has been repaid in full,"; and (C) by striking out in subsection (c) all that follows "payment on that insurance^' and inserting in lieu thereof a period. (c) The amendments made by this section shall apply only with respect to loans made on or after the sixtieth day following the date of enactment of this Act.

Effective date.

FEDERAL ADVANCES TO RESERVE F U N D S OF NON-FEDERAL STUDENT LOAN INSURANCE PROGRAMS

SEC. 114. (a)(1) Section 421(b) of the Higher Education Act of 1965 is amended by striking out "and" at the end of paragraph (2); by striking out the period at the end of the first sentence of that subsection and inserting in lieu thereof ", and"; and by adding thereafter the following new paragraph: "(4) there is authorized to be appropriated the sum of $12,500,000 for making advances after June 30, 1968, pursuant to section 422 for the reserve funds of State and nonprofit private 20 USC 1072. student loan insurance programs." (2) The second sentence of section 421(b) of such Act is amended by striking out "under clauses (1) and (2) " and inserting in lieu thereof "underclauses (1), (2), and (4) ". (b) Section 422(a) of such Act is amended— (1) by striking out "clause (3) " in the first sentence of paragraph (1) and inserting in lieu thereof "clauses (3) and (4) ', and by striking out "of the fiscal years ending June 30, 1966, June 30, 1967, or June 30, 1968," and inserting in lieu thereof "fiscal year'' in the second sentence of such paragraph; and (2) by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph: " (2) No advance shall be made after June 30, 1968, unless matehed by an equal amount from non-Federal sources. Such equal amount may include the unencumbered non-Federal portion of a reserve fund. As used in the preceding sentence, the term 'unencumbered non-Federal no'n^p'e^de'VaT''o'r^'^ portion' means the amount (determined as of the time immediately pre- aon."*

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