Page:United States Statutes at Large Volume 94 Part 2.djvu/143

 PUBLIC LAW 96-374—OCT. 3, 1980

94 STAT. 1421

tion, as required by section 611 of the Fair Credit Reporting Act (15 U.S.C.1681i); "(iii) no use will be made of any such information which would result in the use of collection practices with respect to such a borrower that are not fair and reasonable or that involve harassment, intimidation, false or misleading representations, or unnecessary communication concerning the existence of such loan or concerning any such information; and "(iv) except for disclosures made to obtain the borrower's location, the Secretary (I) shall not disclose any such information until he has notified the borrower that such information will be disclosed to credit bureau organizations unless the borrower enters into repayment of his loan, but (II) shall, if the borrower has not entered into repayment within a reasonable period of time, but not less than thirty days, from the date such notice has been sent to the borrower, disclose the information required by this subsection. "(D)(i) The Secretary shall, within ninety days after the date of ^^^°^^^^^^^ enactment of this paragraph, take such steps as may be necessary to disclosure. establish the disclosure of information described in subparagraph (A) (i), (ii), and (iii) as a routine use in accordance with section 552a(b)(3) of title 5, United States Code, and to establish a system for the prompt notification of any borrower of any disclosure made pursuant to this paragraph. "(ii) Information disclosed by the Secretary to credit bureau organizations under the requirements of this paragraph shall not constitute a system of records within the meaning of section 552a of title 5, United States Code (the Privacy Act of 1974); and credit bureau organizations which enter into agreements with the Secretary under this paragraph shall not be considered Government contractors within the meaning of that Act.". (2) Section 427(a)(2) of the Act is amended by redesignating subpar- 20 USC 1077. agraphs (H) and (I) as subparagraphs (I) and (J), respectively, and by inserting after subparagraph (G) the following new subparagraph: "(H)(i) contains a notice of the system of disclosure of information concerning such loan to credit bureau organizations under section 430(b)(2), and (ii) provides that the lender Ante, p. 1420. on request of the borrower will provide information on the repayment status of the note to such organizations,". (b) Section 430(c) of the Act is amended by adding at the end thereof the following new sentence: "Any forbearance which is approved by the Secretary under this subsection with respect to the repayment of a loan shall not be considered as indicating that a holder of a federally insured loan has failed to exercise reasonable care and due diligence in the collection of the loan.". (c) Section 432 of the Act is amended by adding at the end thereof 20 USC 1082. the following new subsection: "(e) Notwithstanding any other provision of law, the Secretary may provide to eligible lenders, and to any State or any nonprofit private institution or organization having a guaranty agreement under section 428(c)(1), any information with respect to the names and 20 USC 1078. addresses of borrowers or other relevant information which is available to the Secretary, from whatever source such information may be derived.".

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