Page:United States Statutes at Large Volume 90 Part 2.djvu/795

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2263

the United States Code only if such discharge is granted after the expiration of the five-year period beginning on the first date, as specified in section 7 3 1 (a)(2)(B), when repayment of such loan is required.

11 USC letseq.

"STUDENT LOAN INSURANCE FUND

" SEC. 734. (a) The r e is hereby established a student loan insurance Establishment. fund (hereinafter in this section referred to as the 'fund') which shall 42 USC 294g. be available without fiscal year limitation to the Secretary for making payments in connection with the default of loans insured by him under this subpart. All amounts received by the Secretary as premium charges for insurance and as receipts, earnings, or proceeds derived from any claim or other assets acquired by the Secretary in connection with his operations under this subpart, and any other moneys, property, or assets derived by the Secretary from his operations in connection with this section, shall be deposited in the fund. All payments in connection with the default of loans insured by the Secretary under this subpart shall be paid from the fund. Moneys in the fund not needed for current operations under this section may be invested in bonds or other obligations guaranteed as to principal and interest by the United States. " (b) I f at any time the moneys in the fund are insufficient to make payments in connection with the default of any loan insured by the Secretary under this subpart, the Secretary is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Secretary with the approval of the Secretary of the Treasury, but only in such amounts as may be specified from time to time in appropriation Acts. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes and other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which 31 USC 774, securities may be issued under that Act, as amended, are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by h i m under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obliations shall be treated as public debt transactions of the United tates. Sums borrowed under this subsection shall be deposited in the fund and redemption of such notes and obligations shall be made by the Secretary from such fund.

§

"POWERS AND RESPONSIBILITIES

" SEC. 735. (a) I n the performance of, and with respect to, the functions, powers, and duties vested in him by this subpart, the Secretary may— " (1) prescribe such regulations as may be necessary to c a r r y out the purposes of this subpart; " (2) sue and be sued in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this subpart without regard to the amount in con-

42 USC 294h. Regulations, Civil actions, Jurisdiction,

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