Page:United States Statutes at Large Volume 116 Part 4.djvu/409

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PUBLIC LAW 107-331—DEC. 13, 2002 116 STAT. 2837 "(ii) servicing the loan in accordance with the terms of the guarantee by the Secretary of the loan. "(c) SECONDARY TRANSFERS. — "(1) IN GENERAL.— Any transferee under subsection (b) of a loan guaranteed or insured under this title may transfer to any individual or legal entity— "(A) all rights and obligations of the transferee in the loan or in the unguaranteed or uninsured portion of ' the login; and ' "(B) any security given for the loan. "(2) ADDITIONAL REQUIREMENTS.—W ith respect to a transfer described in paragraph (1)— "(A) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (i); and "(B) the transferor shall give notice of the transfer to the Secretary. "(3) ACKNOWLEDGMENT BY SECRETARY.—On receipt of a notice of a transfer under paragraph (2)(B), the Secretary shall issue to the transferee an acknowledgment by the Secretary of— • "(A) the transfer; and "(B) the interest of the transferee in the guaranteed or insured portion of the loan. "(4) RESPONSIBILITIES OF LENDER.—Notwithstanding any y transfer permitted by this subsection, the lender shall— "(A) remain obligated on the guarsmtee agreement or insurance agreement between the lender and the Secretary; "(B) continue to be responsible for servicing the loan in a manner consistent with that guarantee agreement or insurance agreement; and "(C) remain the secured creditor of record. "(d) FULL FAITH AND CREDIT.— "(1) IN GENERAL.—The full faith and credit of the United States is pledged to the payment of all loan guarantees and loan insurance made under this title after the date of enactment of this subsection. "(2) VALIDITY. — "(A) IN GENERAL.— Except as provided in subparagraph

, (B), the validity of a guarantee or insurance of a loan

under this title shall be incontestable if the obligations of the guarantee or insurance held by a transferee have been acknowledged under subsection (c)(3). "(B) EXCEPTION FOR FRAUD OR MISREPRESENTATION. — Subparagraph (A) shall not apply in a case in which a transferee has actual knowledge of fraud or misrepresentation, or participates in or condones fraud or misrepresentation, in connection with a loan. "(e) DAMAGES. — Notwithstanding section 3302 of title 31, United States Code, the Secretary may recover from a lender of a loan under this title any damages suffered by the Secretary as a result of a material breach of the obligations of the lender with respect to a guarantee or insurance by the Secretary of the loan. "(f) FEES.— The Secretary may collect a fee for any loan or guaranteed or insured portion of a loan that is transferred in accordance with this section.