Page:United States Statutes at Large Volume 94 Part 2.djvu/149

 PUBLIC LAW 96-374—OCT. 3, 1980

94 STAT. 1427

such holder shall submit to the Secretary, at such time or times and in such a manner as he may deem proper, such information as may be required by regulation for the purpose of enabling the Secretary to carry out his functions under this section and to carry out the purposes of this section, "(c) The Secretary shall adopt or amend appropriate regulations Regulations. pertaining to programs carried on under this part to prevent, where practicable, any practices which he finds have denied loans to a substantial number of eligible students.". (b) In order for the holders of loans which were made or purchased Plans, submittal. with funds obtained by the holder from an Authority issuing obliga- 20 USC 1087-la. tions, the income from which is exempt from taxation under the Internal Revenue Code of 1954, to be eligible to receive a special 26 USC 1. allowance under section 438(b)(2)(D) of the Higher Education Act of 1965, the Authority shall submit to the Secretary a plan for doing Ante, p. 1425. business. The Secretary shall approve or disapprove such plan within 30 days after the date of its submission. Each such plan shall contain provisions designed to assure that— (1) no eligible lender in the area served by the Authority will be excluded from participation in the program of the Authority and that all eligible lenders may participate in the program on the same terms and conditions if eligible lenders are going to participate in the program; (2) no director or staff member of the Authority who receives compensation from the Authority may own stock in, or receive compensation from any agency that would contract to service and collect the loans of the Authority; (3) student loans will not be purchased from participating lenders at a premium or discount amounting to more than 1 per centum of the unpaid principal amount borrowed plus accrued interest to the date of acquisition, but a reasonable loan transfer fee may be paid by the purchaser; (4) the Authority will, within the limit of funds available and subject to applicable State and Federal law, make loans to, or purchase loans incurred by, all eligible students who are residents of, or who attend an eligible institution within, the area served by the Authority; (5) the Authority has a plan under which the Authority will pursue the development of new lender participation in a continuing program of benefits to students together with assurances of existing lender commitments to the program; and (6) there will be an annual audit of the Authority by a certified public accounting firm which will include review of compliance by the Authority with the provisions of the plan. THE STUDENT LOAN MARKETING ASSOCIATION

SEC. 421. (a)(1) Section 439(a)(1) of the Act is amended by striking 20 USC 1087-2. out "Government-sponsored". (2) Section 439(f) of the Act is amended to read as follows: "(f)(1) The Association shall have common stock having such par Common stock. value as may be fixed by its Board of Directors from time to time which may be issued only to lenders under this part, pertaining to guaranteed student loans, who are qualified as insured lenders under this part or who are eligible institutions, as defined in section 435(a), 20 USC 1085. other than an institution outside of the United States.

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