Page:United States Statutes at Large Volume 95.djvu/483

 PUBLIC LAW 97-35-AUG. 13, 1981

95 STAT. 457

"(8) If the Secretary determines that the protection of the Federal fiscal interest so requires, a State or nonprofit private institution or organization with which the Secretary has an agreement under subsection (b) shall assign to the Secretary any loan of which it is the holder and for which the Secretary has made a payment pursuant to paragraph (1) of this subsection.". (d)(1) The matter following section 428(b)(l)(M)(viii) of the Act is 20 USC 1078. amended by striking out", and that no repayment of principal of any loan for any period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof. (2) Section 427(a)(2)(C) of the Act is amended— 20 USC 1077. (A) by striking out "that any such period" and inserting in lieu thereof "and that any such period"; and (B) by striking out", and that no repayment of principal of any loan for a period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof. (e)(1) Section 427(a)(2)(B) of the Act is amended by striking out "not earlier than". (2) Section 428(b)(l)(E) of the Act is amended by striking out "not earlier than". AMENDMENTS CONCERNING THE STUDENT LOAN MARKETING ASSOCIATION

SEC. 538. (a) Section 439(a) of the Act is amended by striking out 20 USC 1087-2. "insured" wherever it appears, and by inserting after "student ^" ^°^ ^""^• loans," the first time it appears the following: "including loans which are insured". (b) Section 439(a) of the Act is further amended by striking out "and" at the end of clause (1), and by striking the period at the end of clause (2) and inserting in lieu thereof the following: "; and (3) to assure nationwide the establishment of adequate loan insurance programs for students, to provide for an additional program of loan insurance to be covered by agreements with the Secretary.". (c) Section 439(d)(1) of the Act is amended to read as follows: "(d)(1) The Association is authorized, subject to the provisions of this section— "(A) pursuant to commitments or otherwise to make advances on the security of, purchase, or repurchase, service, sell or resell, offer participations, or pooled interests or otherwise deal in, at prices and on terms and conditions determined by the Association, student loans which are insured by the Secretary under this part or by a State or nonprofit private institution or organization with which the Secretary has an agreement under section 428(b); "(B) to buy, sell, hold, underwrite, and otherwise deal in obligations, if such obligations are issued, for the purpose of making or purchasing insured loans, by a State or nonprofit private institution or organization which has an agreement with the Secretary under section 428(b) or by an eligible lender in a State described in section 435(g)(l)(D) or (F); "(C) to undertake a program of loan insurance pursuant to agreements with the Secretary under sections 428 and 428(A), and except with respect to loans under section 439(o), the Secre-

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