Page:United States Statutes at Large Volume 90 Part 2.djvu/797

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2265

" (3) The United States shall not be entitled to recover any damages Recovery from an individual under paragraph (2) upon the death of the individual. "(4) The Secretary shall by regulation provide for the waiver or Waiver. suspension of payment of any or all of the damages to which the Regulation. United States is entitled under paragraph (2) whenever the Secretary determines that compliance by an individual with the agreement which was breached is impossible or would involve extreme hardship to the individual and that recovery of such damages with respect to the individual would be unconscionable. "PARTICIPATION BY FEDERAL CREDIT UNIONS I N FEDERAL, STATE, AND PRIVATE STUDENT LOAN INSURANCE PROGRAMS

"SEC. 736. Notwithstanding any other provision of law, Federal 42 USC 294i,. credit unions shall, pursuant to regulations of the Director of the Regulations. Bureau of Federal Credit Unions, have power to make insured loans to eligible students in accordance with the provisions of this subpart relating to Federal insured loans. ((DEFINITIONS 42 USC 294j. "SEC. 737. As used in this subpart: "(1) The term 'eligible institution' means, with respect to a fiscal year, a school of medicine, osteopathy, dentistry, optometry, pharmacy, podiatry, veterinary medicine, and public health within the United States that is receiving, or the Secretary determines is eligible Post, p. 2290,. to receive, a grant under section 770 for such fiscal year. "(2) The term 'school of medicine, osteopathy, or dentistry, optometry, pharmacy, podiatry, veterinary medicine, and public health' means any school legally authorized within a State to train members of the professions indicated and accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that a new school which (by reason of no, or an insufficient, period of operation) is not, at the time of application for insurance for a loan under this subpart, eligible for accreditation by such a recognized body or bodies, shall be deemed accredited for purposes of this part if the Commissioner of Education finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of the first entering class in such school. "(3) The term 'eligible lender' means an eligible institution, an agency or instrumentality of a State, a financial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the United States or of any State, or a pension fund approved by the Secretary for this purpose. "(4) The term 'line of credit' means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years. " R E P A Y M E N T BY THE SECRETARY OF LOANS OF DECEASED OR DISABLED BORROWERS

"SEC. 738. If a student borrower who has received a loan dies or 42 USC 294k. becomes permanently and totally disabled (as determined in accord-

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