Page:United States Statutes at Large Volume 95.djvu/482

 95 STAT. 456

20 USC 1078.

94 Stat. 1424, 20^TJsr 078-2 1087-2 Ante, p. 450.

94 Stat. 1419. 20 USC 1077a.

15 USC 1640. 15 USC 1607. 20 USC 1078. Ante, p. 455.

PUBLIC LAW 97-35—AUG. 13, 1981 tion (b) of this section, respectively, to any holder shall be reduced by the Secretary by the amount which the lender is authorized to charge as an origination fee in accordance with paragraph (2) of this subsection. If the total amount of interest and special allowance payable under section 428(a)(3)(A) and subsection (b) of this section, respectively, is less than the amount the lender was authorized to charge borrowers for origination fees in that quarter, the Secretary shall deduct the excess amount from the subsequent quarters' payments until the total amount has been deducted. "(2) With respect to any loan (other than loans made under section 428B and section 439(o)) for which a completed note or other written evidence of the loan was sent or delivered to the borrower for signing ®^ °^ after 10 days after the date of enactment of the Postsecondary Student Assistance Amendments of 1981, each eligible lender under this part is authorized to charge the borrower an origination fee in an amount not to exceed 5 per centum of the principal amount of the loan, which may be deducted from the proceeds of the loan prior to payment to the borrower. "(3) Such origination fee shall not be taken into account for purposes of determining compliance with section 427A. «(4) "pj^g lender shall disclose to the borrower the amount and method of calculating the origination fee. For any loan for which the lender is authorized to charge an origination fee and which is made prior to August 1, 1982— "(A) this disclosure need not meet the requirements of the Truth in Lending Act (15 U.S.C. 1601 et seq.) or the disclosure requirements of any State law; "(B) for purposes of such Act, a lender may disclose either in the note or other written evidence of the loan or in a supplementary letter (which need not be signed by the borrower); "(C) for purposes of such Act, the origination fee shall not be taken into account in calculating and disclosing the annual percentage rate; and "(D) a lender or an assignee shall not incur civil liability under section 130 of such Act nor be subject to any administrative enforcement action pursuant to section 108 of such Act for disclosures in connection with such loans.". (b) Section 428(a)(3)(A) of the Act is amended by inserting "and subject to section 438(c)" after "Except as provided in paragraph (8)". ADMINISTRATIVE SAVINGS; TECHNICAL AMENDMENTS

O fjih }^BA 20 USC 1096. 20 USC 1077. 20 USC 1078.

SEC. 537. (a)(1) Section 428(e) of the Act is repealed. (2) The first sentence of section 489(a) of the Act is amended by striking out "$10" and inserting in lieu thereof "$5". (b)(1) Section 427(c) of the Act is amended by striking out "$360" each place it appears and inserting in lieu thereof "$600". (2) Section 428(b)(l)(L) of the Act is amended by striking out "$360" each place it appears and inserting in lieu thereof "$600". (c) Section 428(c) of the Act is amended— (1) in paragraph (2)(D), by striking out "but shall not otherwise provide for subrogation of the United States to rights of any insurance beneficiary" and inserting in lieu thereof "but shall provide for subrogation of the United States to the rights of any insurance beneficiary only to the extent required for purposes of paragraph (8)"; and (2) by adding at the end thereof the following new paragraph:

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