Page:United States Statutes at Large Volume 97.djvu/515

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PUBLIC LAW 98-79 —AUG. 15, 1983 97 STAT. 483 centum of the unpaid principal amount borrowed plus accrued interest to the date of acquisition, but a reasonable loan trans- fer fee may be paid by the purchaser; "(D) the Authority will, within the limit of funds available and subject to the applicable State and Federal law, make loans to, or purchase loans incurred by, all eligible students who are residents of, or who attend an eligible institution within, the area served by the Authority; "(E) the Authority has a plan under which the Authority will pursue the development of new lender participation in a con- tinuing program of benefits to students together with assur- ances of existing lender commitments to the program; "(F) there will be an annual audit of the Authority by a certified public accounting firm which will include review of compliance by the Authority with the provisions of the plan; and "(G) the Authority will not issue obligations for amounts in excess of the reasonable needs for student loan credit within the area served by the Authority, after taking into account existing sources of student loan credit in that area. "(2) In order for the holders of loans which were made or pur- chased with funds obtained by the holder from an Authority issuing obligations, the income from which is exempt from taxation under the Internal Revenue Code of 1954, to be eligible to receive a special 26 USC l et seq. allowance under subsection (b)(2) of this section on any such loans, the Authority shall not engage in any pattern or practice which results in a denial of a borrower's access to loans under this part because of the borrower's race, sex, color, religion, national origin, age, handicapped status, income, attendance at a particular eligible institution within the area served by the Authority, length of the borrower's educational program, or the borrower's academic year in school.". (b) Section 420(b) of the Education Amendments of 1980 is 20 USC l087-la. (c) Section 438(b)(2)(B)(iii) of the Act is amended by striking out 20 USC 1087-1. "section 420(b) of the Education Amendments of 1980" and inserting in lieu thereof "subsection (d) of this section". (d) Until two years after the date of enactment of this Act, section 20 USC 1087-1 438(d)(2) of the Act (as added by subsection (a) of this section) shall "ot^- not operate to prevent the payment of special allowances on loans described in such section 438(d)(2) because an Authority described in such section denies access to loans under part B of title IV of the Act 20 USC 1071. to students in attendance at particular institutions with specified high default rates on such loans, if such denial is pursuant to a rule of such Authority adopted prior to August 1, 1983. STUDENT LOAN MARKETING ASSOCIATION SEC. 8. Section 439(1) of the Act is amended by striking out 96 Stat. 1405. "September 30, 1984" and inserting in lieu thereof "September 30, 20 USC 1087-2. 1988". ADMINISTRATIVE COSTS SEC. 9. The amendments made by section 417(c) of the Education 20 USC 1078 Amendments of 1980 shall be effective as if enacted as part of the go^ug^, ^Q^O