Page:United States Statutes at Large Volume 90 Part 2.djvu/650

 90 STAT. 2118

Definitions.

PUBLIC LAW 94-482—OCT. 12, 1976 The total amount of payments for any fiscal year made under this paragraph shall not exceed one-half of 1 per centum of the total principal amount of the loans upon which insurance was issued under this part during- such fiscal year by such State, or institution or organization. If the sums appropriated for any fiscal year for making payments under this paragraph are not sufficient to pay in full the amounts provided for which such States, institutions, and organizations are eligible, then such amount wil I be ratably reduced. In case additional funds become available for making payments for any fiscal year during which the preceding sentence has been applied, such reduced amounts shall be increased on the same basis as they were reduced. "(B) Each State or nonprofit private institution or organization to which subparagraph (A) of this paragraph applies shall spend not less than y^ of the payments received pursuant to this paragraph on the purposes described in clause (i) or subparagraph (A), not less than 1/^ of such payments on the purposes described in clauses (ii) and (iii) o^ subparagraph (A), and the remaining amount of such payments on the purpose described in clause (iv) of such subparagraph. "(2)(A) The Commissioner is authorized to make payments in accordance with the provisions of this paragraph to any State or any nonprofit private institution or organization with which he has a supplemental guaranty agreement under section 428A(a)(2) of this Act for the purposes of— " (i) the administrative costs of promotion of commercial lender participation; " (ii) the administrative costs of collection of loans; "(iii) the administrative costs of preclaims assistance for default prevention; or " (iv) other such costs related to the student loan insurance program subject to such agreement. The total amount of payments for any fiscal year made under this paragraph shall not exceed an additional one-half of 1 per centum of the total principal amount of the loans upon which insurance was issued under this pait during such fiscal year by such State, or institution or organization. If the sums appropriated for any fiscal year for making payments under this paragraph are not sufficient to pay in full the amounts provided for which such States, institutions, and organizations are eligible, then such amount will be ratably reduced. In case additional funds become available for making payments for any fiscal year during which the preceding sentence has been applied, such reduced amounts shall be increased on the same basis as they were reduced. "(B) The provisions of subparagraph (B) of paragraph (1) shall apply to any payments made under subparagraph (A) of this paragraph. " (3) For the purpose of this subsection, the term— "(A) 'administrative costs of promotion of commercial lender participation' means any administrative costs incurred by an insurer which are directly related to supervising, training, or informing eligible lenders or prospective eligible lenders or inducing such lenders to improve or expand their program participation, and such costs may include (i) the costs of planning and executing instructional seminars and the costs of attending other meetings with lenders, (ii) the costs of obtaining or producing instructional or promotional materials or equipment for distribution to, or use with, lenders, (iii) postage costs associated with the distribution of instructional or promotional materials to lenders, (iv) an appropriate share of the costs of

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