107 STAT. 358 PUBLIC LAW 103-66—AUG. 10, 1993 otherwise inconsistent with the terms or purposes of this section.
- (B) The Secretary may direct a guaranty agency to suspend
or cease activities under any contract entered into by or on behalf of such agency after January 1, 1993, if the Secretary determines that the misuse or improper expenditure of such guaranty agency's funds or assets or such contract provides unnecessary or improper benefits to such agency's officers or directors. "(3) PENALTIES.— Violation of any direction issued by the Secretary under this subsection may be subject to the penalties described in section 490 of this Act.
- (4) AVAILABILITY OF FUNDS.— Any funds that are returned
or otherwise recovered by the Secretary pursuant to this subsection shall be available for expenditure for expenses pursuant to section 458 of this Act.". SEC. 4043. TERMS OF LOANS. (a) AMENDMENT. — Section 428 of the Act (20 U.S.C. 1078) is amended— (1) in subsection (b)(l)(D), by striking "be subject to" through the semicolon and inserting "be subject to income contingent repayment in accordance with subsection (m);"; and (2) in subsection (m)— (A) by amending paragraph (1) to read as follows: "(1) AUTHORITY OF SECRETARY TO REQUIRE. —The Secretary shall require at least 10 percent of the borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans under an income contingent repayment plan, the terms and conditions of which shall be established by the Secretary and the same as, or similar to, an income contingent repayment plan established for purposes of part D of this title."; and (B) by striking paragraphs (2), (3), and (4) and inserting the following new paragraph: "(2) LOANS FOR WHICH INCOME CONTINGENT REPAYMENT MAY BE REQUIRED.—^A loan made under this part may be required to be repaid under this subsection if the note or other evidence of the loan has been assigned to the Secretary pursuant to subsection (c)(8).". 20 USC 1078 (b) EFFECTIVE DATE.—The amendments made by this section shall take effect on July 1, 1994. SEC. 4044. ASSIGNMENT OF LOANS. Section 428(c)(8) of the Act (20 U.S.C. 1078(c)(8)) is amended— (1) in the first sentence, by inserting the subparagraph designation "(A)" before "If the"; (2) by striking the second and third sentences; and (3) by adding at the end the following new subparagraph: "(B) An orderly transition from the Federal Family Education Loan Program under this part to the Federal Direct Student Loan Program vuider part D of this title shall be deemed to be in the Federal fiscal interest, and a guaranty agency shall promptly assign loans to the Secreta^ under tfis paragraph upon the Secretary*s request.". note.