PUBLIC LAW 99-272—APR. 7, 1986
100 STAT. 349
(b) SPECIAL RULE.—The amount described in subsection (a) may not be credited by the Student Loan Marketing Association to reduce the obligation to repay the Federal Financing Bank amounts which the Student Loan Marketing Association owes to the Federal Financing Bank in each of the fiscal years 1987 and 1988. (c) SAVINGS PROVISION.—Nothing in this section shall be construed Contracts. to authorize or require the Student Loan Marketing Association or the Federal Financing Bank to renegotiate the contract or other agreement under which the Student Loan Marketing Association agreed to pay amounts made available by the Federal Financing Bank to carry out section 439 of the Higher Education Act of 1965. 20 USC 1087-2. SEC. 16020. DEFINITION. Section 435 of the Act is amended by adding at the end thereof the 20 USC 1085. following new subsection: "(k) The term 'guaranty agency' means a State or nonprofit private institution or organization with which the Secretary has an agreement pursuant to section 428(b).". 20 USC 1078.
Subtitle B—Savings From Improved Student Loan Collection SEC. 16021. AGREEMENT FOR AUDITS. 20 USC 1078. Section 428(b)(2) of the Act is amended— (1) by striking out "and" at the end of subparagraph (B); (2) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof "; and"; and (3) by inserting after such subparagraph the following: "(D) provide for— "(i) conducting, except as provided in clause (ii), financial and compliance audits of the guaranty agency at least once every two years and covering the period since the most recent audit, conducted by a qualified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to the Secretary; or "(ii) with regard to a guaranty program of a State which is audited under chapter 75 of title 31, United States Code, 31 USC 7501 et deeming such audit to satisfy the requirements of clause (i) seq. for the period of time covered by such audit.". SEC. 16022. RECOVERY COSTS.
Section 430(b) of the Act is amended— 20 USC 1080. (1) by striking out in paragraph (1) "(including reasonable administrative costs)" and inserting in lieu thereof the following: "(including reasonable administrative and collection costs, to the extent set forth in regulations issued by the Secretary)"; (2) by striking out paragraph (2); and (3) by striking out "(1)". SEC. 16023. CREDIT BUREAU REPORTS. Part B of title IV of the Act is amended by adding immediately 20 USC 1080a. after section 430 the following new section:
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