12 2 STA T .3 1 8 1 PUBLIC LA W 11 0– 31 5— AU G .1 4, 2008 ac c redit i ng agenc yo ra s sociation recogni z ed b yt h e S ecretary u nder sub p art 2 o f part H of tit l e IV’ ’
and ( 2 ) in paragraph ( 8 ) , by inserting ‘ ‘capital pro j ect’’ after ‘‘issuing ta x able’’ . (b) FED E RAL I NSU RAN C E FO R B ONDS. — Section 34 3(b) (2 0U .S. C . 1 0 6 6b(b)) is a m ended— (1) in paragraph (8)(B)(ii)— ( A ) by stri k ing ‘‘10’’ and inserting ‘‘ 5 ’’; and (B) by inserting ‘‘ w ithin 120 days’’ after ‘‘loan proceeds’’; (2) in paragraph (10), by striking ‘‘and’’ after the semicolon; (3) in paragraph (11), by striking the period at the end and inserting ‘‘; and’’; and (4) by adding at the end the following
‘‘(12) limit loan collateralization, with respect to any loan made under this part, to 100 percent of the loan amount, except as otherwise re q uired by the Secretary.’’. (c) LIM I T ATIONS ON FEDERAL INSURANCE FOR BONDS ISSUED BY T H E D ESI G NATED BONDING AUTHORITY.—Section 344(a) (20 U.S.C. 1066c(a)) is amended— (1) in the matter preceding paragraph (1), by striking ‘‘ $ 3 7 5,000,000’’ and inserting ‘‘$1,100,000,000’’; (2) in paragraph (1), by striking ‘‘$250,000,000’’ and inserting ‘‘$733,333,333’’; and (3) in paragraph (2), by striking ‘‘$125,000,000’’ and inserting ‘‘$366,666,667’’. (d) AUTHORITY OF THE SECRETARY.—Section 345 (20 U.S.C. 1066d) is amended— (1) in paragraph (1), by striking ‘‘enactment of the Higher E ducation Amendments of 1 9 92,’’ and inserting ‘‘the date of enactment of the Higher Education O pportunity Act,’’; (2) by redesignating paragraphs (2) through (7) as para - graphs (4) through (9), respecti v ely; (3) by inserting after paragraph (1) the following: ‘‘(2) shall ensure that— ‘‘(A) the selection process for the designated bonding authority is conducted on a competitive basis; and ‘‘(B) the evaluation and selection process is trans- parent; ‘‘(3) shall— ‘‘(A) review the performance of the designated bonding authority after the third year of the insurance agreement; and ‘‘(B) following the review described in subparagraph (A), implement a revised competitive selection process, if determined necessary by the Secretary in consultation with the Advisory Board established pursuant to section 347;’’; (4) in paragraph (8) (as redesignated by paragraph (2)), by striking ‘‘and’’ after the semicolon; (5) in paragraph (9) (as redesignated by paragraph (2)), by striking the period at the end and inserting ‘‘; and’’; and (6) by adding at the end the following: ‘‘(10) not later than 120 days after the date of enactment of the Higher Education Opportunity Act, shall submit to the authorizing committees a report on the progress of the Depart- ment in implementing the recommendations made by the G overnment Accountability Office in October 2006 for Deadlin e .R e ports .
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