PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1689 principal amount of the loans on which insurance was issued under this peirt during such fiscal year by such agency; and "(ii) for loans originated during fiscal years beginning on or after October 1, 2003, and in accordance with the provisions of this paragraph, shall, except as provided in subparagraph (C), pay to each guaranty agency, a loan processing and issuance fee equal to 0.40 percent of the total principal amount of the loans on which insurance was issued under this part during such fiscal year by such agency. "(B) PAYMENT. — The payment required by subparagraph (A) shall be paid on a quarterly basis. The guaranty agency shall be deemed to have a contractual right against the United States to receive payments according to the provisions of this paragraph. Pa3anents shall be made promptly and without administrative delay to any guaranty agency submitting an accurate and complete application under this subparagraph. "(C) REQUIREMENT FOR PAYMENT.— No payment may be made under this paragraph for loans for which the disbursement checks have not been cashed or for which electronic funds transfers have not been completed.". (f) ACTION ON AGREEMENTS.— Section 428(g) is amended by 20 USC 1078. striking "and Labor" and inserting "and the Workforce". (g) LENDERS-OF-LAST-RESORT. —Paragraph (3) of section 428(j) is amended— (1) in the paragraph heading, by striking "DURING TRANSI- TION TO DIRECT LENDING"; (2) in subparagraph (A)— (A) by striking "during the transition from the Federal Family Education Loan Program under this part to the Federal Direct Student Loan Program under part D of this title," and inserting a comma; (B) by inserting "designated for a State" after "a guaranty agency"; and (C) by inserting "subparagraph (C) and" before "section 422(c)(7),"; and (3) by adding at the end thereof the following: "(C) The Secretary shall exercise the authority described in subparagraph (A) only if the Secretary determines that eligible borrowers are seeking and are unable to obtain loans under this part, and that the guaranty agency designated for that State has the capability to provide lender-of-last-resort loans in a timely manner, in accordance with the guaranty agencys obligations under paragraph (1), but cannot do so without advances provided by the Secretary under this paragraph. If the Secretary makes the determinations described in the preceding sentence and determines that it would be cost-effective to do so, the Secretary may provide advances under this paragraph to such guaranty agency. If the Secretary determines that such guaranty agency does not have such capability, or will not provide such loans in a timely fashion, the Secretary may provide such advances to enable another guaranty agency, that the Secretary determines to have such capability, to make lender-of-last-resort logins to eligible borrowers in that State who are experiencing loan access problems.".
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