PUBLIC LAW 103-208—DEC. 20, 1993
107 STAT. 2479
a reliable authority as to the quahty of education or training
offered by an institution seeking to participate in the programs
authorized under this title";
(7) in section 496(1)(2)—
(A) by striking "institutution" and inserting "institution"; and
(B) by striking "association leading to the suspension"
and inserting "association, described in paragraph (2)(A)(i),
(2)(B), or (2)(C) of subsection (a) of this section, leading
to the suspension";
(8) in section 496(n)(l), by amending subparagraph (B)
to read as follows:
"(B) site visits, including unannounced site visits as appropriate, at accrediting agencies and associations, and, at the
Secretary's discretion, at representative member institutions.";
(9) in section 498(c>—
(A) in paragraph (2), by adding at the end the following
new sentences: "Such criteria shall take into account any
differences in generally accepted accounting principles, and
the financial statements required thereunder, that are
applicable to for profit and nonprofit institutions. The Secretary shall take into account an institution's total financial
circumstances in making a determination of its ability to
meet the standards herein required.";
(B) in the matter preceding subparagraph (A) of paragraph (3), by striking "may determine" and inserting "shall
determine";
(C) by amending subparagraph (C) of paragraph (3)
to read as follows:
"(C) such institution establishes to the satisfaction of the
Secretary, with the support of a financial statement audited
by an independent certified public accountant in accordance
with generally accepted auditing standards, that the institution
has sufficient resources to ensure against the precipitous closure of the institution, including the ability to meet all of
its financial obligations (including refunds of institutional
charges and repayments to the Secretary for liabilities and
debts incurred in programs administered by the Secretary);
or";
(D) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and
(E) by inserting after paragraph (3) the following new
paragraph:
"(4) If an institution of higher education that provides a 2-
year or 4-year program of instruction for which the institution
awards an associate or baccalaureate degree fails to meet the ratio
of current assets to current liabilities imposed by the Secretary
pursuant to paragraph (2), the Secretary shall waive that particular
requirement for that institution if the institution demonstrates
to the satisfaction of the Secretary that—
"(A) there is no reasonable doubt as to its continued solvency and abihty to deliver quality educational services;
"(B) it is current in its payment of all current liabilities,
including student refunds, repayments to the Secretary, payroll,
and payment of trade creditors and withholding taxes; and
20 USC 1099b.
20 USC 1099c.
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