Page:United States Statutes at Large Volume 91.djvu/424

 91 STAT. 390 42 USC 294d.

Certificates of insurance. 42 USC 294e.

Responsibilities. 42 USC 294h.

PUBLIC LAW 95-83—AUG. 1, 1977 (2) Section 731(a)(2)(C)(i) of such Act (relating to termination of loans) is amended by inserting "(or at an institution defined by section 435(b) of the Higher Education Act of 1965)" after "eligible institution". (3) The first sentence of section 732(a)(2) of such Act (relating to effective date of certificates of insurance) is amended by striking out "was made" and inserting in lieu thereof "is made to a student described in section 731(a)(1)". (4) Section 732(d) of such Act (relating to certificates of insurance) is amended to read as follows: "(d) The rights of an eligible lender arising under insurance evidenced by a certificate of insurance issued to it under this section may be assigned by such lender, subject to regulation by the Secretary, only to (1) another eligible lender, or (2) the Student Loan Marketing Association.". (5)(A) The first sentence of section 735(c)(2) of such Act (relating to responsibilities) is amended (i) by striking out "specified in the agreement" and inserting in lieu thereof "specified in the contract", and (ii) by striking out all that follows "in an amount" and inserting in lieu thereof "determined in accordance with the formula

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Waivers and suspensions.

Eligible institutions.

42 USC 294j.

Effective date.

42 USC 294d

note. Effective date.

42 USC 294i.

Loan forgiveness. 42 USC 294n.

in which 'A' is the amount the United States is entitled to recover; to or on behalf of the individual and the interest on such amounts which would be payable if at the time the amounts were paid they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States; 't' is the total number of months in the individual's period of obligated service; and 's' is the number of months of such period served by him in accordance with the contract.". (B) Section 735(c)(4) of such Act (relating to waivers and suspensions) is amended (i) by inserting "any obligation of service or" after "suspension of", and (ii) by striking out "the agreement which was breached" and inserting in lieu thereof "the contract". (6) Section 737(1) of such Act (relating to definition of eligible institution) is amended by striking out "that is receiving, or the Secretary determines is eligible to receive, a grant under section 770 for such fiscal year" and inserting in lieu thereof "that received a grant, or the Secretary determines met the requirements for receipt of a grant, under section 770 for the preceding fiscal year." (7) The amendments made by this subsection shall take effect October 1, 1977. (d) Effective October 1, 1977, section 736 of such Act (relating to participation of Federal credit unions) is amended by striking out "Director of the Bureau of Federal Credit Unions" and inserting in lieu thereof "Administrator of the National Credit Union Administration". (e)(1) Section 741(f)(1)(B) of such Act (relating to loan forgiveness) is amended (A) by inserting " (i) " after "who", and (B) by inserting before the semicolon the following: ", or (ii) obtained, under a written loan agreement entered into before October 12, 1976, any other educational loan for his costs at a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry". (2) Section 741(f)(2) of such Act (relating to payments) is
 * <^' is the sum of the amounts paid by the Secretary under the contract

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