100 STAT. 1374 state and local governments,
PUBLIC LAW 99-498—OCT. 17, 1986
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"(ii) there is a State constitutional prohibition affecting the eligibility of such an institution; and "(U) provides (i) for the eligibihty of all lenders described in section 435(d)(1) under reasonable criteria, unless (I) that lender is eliminated as a lender under regulations for the limitation, suspension, or termination of a lender under the Federal student loan insurance program or is eliminated as a lender pursuant to criteria issued under the student loan insurance program which are substantially the same as regulations with respect to such eligibility as a lender issued under the Federal student loan insurance program, or (II) there is a State constitutional prohibition affecting the eligibility of a lender, and (ii) assurances that the guaranty agency will report to the Secretary concerning changes in such criteria, including any procedures in effect under such program to limit, suspend, or terminate lenders. "(2) CONTENTS OF INSURANCE PROGRAM AGREEMENT.—Such an
agreement shall— "(A) provide that the holder of any such loan will be required to submit to the Secretary, at such time or times and in such manner as the Secretary may prescribe, statements containing such information as may be required by or pursuant to regulation for the purpose of enabling the ,^ Secretary to determine the amount of the payment which must be made with respect to that loan; "(B) include such other provisions as may be necessary to protect the United States from the risk of unreasonable loss ,, and promote the purpose of this part, including such provisions as may be necessary for the purpose of section 437, ? '^*' i^ and as are agreed to by the Secretary and the guaranty agency, as the case may be; "(C) provide for making such reports, in such form and containing such information, as the Secretary may reason^^ ably require to carry out the Secretary's functions under this part, and for keeping such records and for affording such access thereto as the Secretary may find necessary to assure the correctness and verification of such reports; "(D) provide for— "(i) conducting, except as provided in clause (ii), financial and compliance audits of the guaranty agency at least once every 2 years and covering the period since the most recent audit, conducted by a qualified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to ^.^ the Secretary; or i^' ""• "' "(ii) vvith regard to a guaranty program of a State which is audited under chapter 75 of title 31, United 31 USC 7501 et States Code, deeming such audit to satisfy the requireseq. ments of clause (i) for the period of time covered by such audit; and "(E) provide that any guaranty agency may transfer • ii. loans which are insured under this part to any other guaranty agency with the approval of the holder of the loan and such other guaranty agency.
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