Page:United States Statutes at Large Volume 106 Part 1.djvu/571

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PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 539 under this section or if the Secretary believes the lender or servicer may have engaged in fraud in securing designation under subsection (a) or is failing to service loans in accordance with program regulations. "(d) SUPERVISION OF DESIGNATED GUARANTY AGENCIES. — "(1) AUDIT OF GUARANTY AGENCIES. — Each guaranty agency desiring a designation xinder subsection (a) shall have a financial and compliance audit of the defaulted loan portfolio of such guaranty agency conducted annually by a qualified independent organization or person from a list of qualified organizations or persons promulgated by the Secretary in accordsuice with standards established by the Comptroller General and the Secretary. The standards shall include defined statistical sampling techniques designed to measure the performance rating of the guaremty agency for the purpose of this section. Each guaranty agency shall submit the audit required by this paragraph to the Secretary. "(2) QUARTERLY SAMPLE AUDITS. — The Secretary may require quarterly sample audits as a means of determining continued qualification of the guaranty agency for designation as an exceptional guaranty agency. "(3) SECRETARY'S DETERMINATIONS.— The Secretary shall make the determination under subsection (a) based upon the audits submitted under this section and other information in his possession. If the results of the audit are not persuasively rebutted by such other information, the Secretary shall inform the guaranty agency that its application for designation as an exceptional guaranty agency has been approved. "(4) COSTS OF AUDITS. — Each guaranty agency shall pay for all of the costs of the audits regulated by this section. "(5) REVOCATION FOR FRAUD. —The Secretary may revoke the designation of a guarsmty agency under subsection (a) at any time if the Secretary has reason to believe the guaranty agency secured its designation under subsection (a) thorough fraud or fails to comply with applicable regulations. "(6) REVOCATION BASED ON PERFORMANCE.— Designation as an exceptional guaranty agency may be revoked at any time by the Secretary upon 30 days notice and an opportunity for a hearing before the Secretary upon a finding by the Secretary that the guaranty agency has failed to maintain an acceptable overall level of regulatory compliance. "(e) SPECIAL RULE. —Reimbursements made by the Secretsiry on loans submitted for claim by an eligible lender or loan servicer designated for exceptional performance under this section shall not be subject to additional review by t^e Secretary or repurchase by the guaranty agency for any reason ot^er than a determination by the Secretary that the eligible lender, loan servicer, or guaranty agency engaged infraudor ouier purposefiil misconduct in obtaining designation for exceptional performance. "(0 LIMITATION. — Nothing in this section shall be construed to affect the processing of claims on student loans of eligible lenders not subject to this paragraph. "(g) CLAIMS. — ^A lender, servicer, or guaranty agency designated under subsection (a) failing to service loans or otherwise comply with applicable program regulations shall be considered in violation of the Federal False Claims Act.