86 STAT. ]
PUBLIC LAW 92-318-JUNE 23, 1972
265
SAVINGS PROVISION
SEC. 132F. The amendments made by sections 132,132A, 132B, 132C, and 132D, shall not be effective with respect to any loan made after the date of enactment of this Act, in whole or in part, to consolidate or convert a loan made or contracted for prior to its effective date. S T F D E N T LOAN M A R K E T I N G
ASSOCIATION
SEC. 133. (a) Part B of title IV of the Higher Education Act of 1965 is further amended by adding at the end thereof the following new section: " S T I ' D E N T LOAN M A R K E T I N G
^"'e, p. 264.
ASSOCIATION
430. (a) The Congress hereby declares that it is the purpose of this section to establish a Government-sponsored private corporation which will be financed by private capital and which will serve as a secondary market and warehousing facility for insured student loans, insured by the Connnissioner under this part or by a State or nonprofit private institution or organization with which the Commissioner lias an agreement under section •128(b), and which will provide liquidity for student loan investments. '"•(b)(1) There is hereby created a body corporate to be known as the Student Loan Marketing Asscx-iation (hereinafter referred to as the 'Association'). The Association shall have succession until dissolved. I t shall uiaintain its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof. Offices may be established by the Association in such other place or places as it may deem necessary or appropriate for the conduct of its business. "•(2) The Association, including its franchise, capital, reserves, surl)lus, mortgages, or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by any State, territory, possession. Commonwealth, or dependency of the United States, or by the District of Columbia, or by any county, municipality, or local taxing authority, except that any real property of the Association shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. (3) There is hereby authorized to be appropriated to the Secretary of Health, Education, and "Welfare $5,000,000 for making advances for the purpose of helping to establish the Association. Such advances shall he. repaid within such period as the Secretary may deem to be appropriate in light of the maturity and solvency of the Association. Such advances shall bear interest at a rate not less than (A) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the I^'nited States with remaining periods to maturity comparable to the maturity of such advances, adjusted to the nearest one-eighth of 1 per centum, plus (B) an allowance adequate in the judgment of the Secretary to cover administrative costs and probable losses. Repayments of such advances shall be deposited into miscellaneous receipts of the Treasury. " (c)(1) The Association shall have a Board of Directors which shall "'SEC.
•
consist of twenty-one persons, one of Avhom shall be designated Chairman by the President. "(2) An interim Board of Directors shall be appointed by the President, one of whom he shall designate as interim Chairman, The interim Board shall consist of twenty-one memberS, seven of whom shall be representative of banks or other financial institutions which are insured
^"'e, pp. 26i, Establishment,
Tax exemption.
Appropriation.
Advances, ^"'^'•^^'^•
^.Board of Directors.
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