Page:United States Statutes at Large Volume 94 Part 2.djvu/161

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PUBLIC LAW 96-000—MMMM. DD, 1980

PUBLIC LAW 96-374—OCT. 3, 1980

94 STAT. 1439

except that no such request shall be increased above the amount requested in the application. "(c) Any institution of higher education desiring to receive pay- Application ments of Federal capital contributions from the apportionment under submittal. subsection (b) shall submit an application therefor to the Secretary at such time as the Secretary prescribes. "(d) There are authorized to be appropriated such sums as may be Appropriation necessary to pay the differential between the rate of return on authorization. obligations of the Secretary made under this section and the interest collected on student loans made under this part. "(e) In carrying out the provisions of this part, the Secretary is authorized— "(1) to consent to modification, with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision of any note evidencing a loan which has been made under this part; "(2) to enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption; "(3) to conduct litigation in accordance with the provisions of 20 USC 1082. section 432(a)(2); and "(4) to enter into a contract or other arrangement with State or nonprofit agencies and, on a competitive basis, with collection agencies for servicing and collection of loans under this part. RECAPTURE OF CURRENT BALANCE OP STUDENT LOAN FUNDS

"SEC. 469. If, by April 1 of any fiscal year, the Secretary has made available for deposit in student loan funds pursuant to section 463(a)(2)(C) an amount which equals or exceeds $1,000,000,000 to be available for loans for such fiscal year, there shall be collected from each student loan fund established under this part the current balance of such student loan fund as follows: "(1) The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund (excluding any portion of such balance which was deposited pursuant to section 463(a)(2)(C)) as the total amount of Federal capital contributions to such fund by the Secretary from funds appropriated under section 461 or under title II of the National Defense Education Act of 1958 bears to the sum of such Federal capital contributions and the institution's capital contribution to such fund. Such amounts shall be deposited in the Treasury of the United States. "(2) The remainder of such balance, excluding any portion of such balance which was deposited pursuant to section 463(a)(2)(C), shall be paid to the institution. "(3) Any portion of such balance which was deposited pursuant to section 463(a)(2)(C) shall be retained in the student loan fund for use in accordance with this part.". (b)(1) Section 463(a)(2) of the Act is amended to read as follows: "(2) provide for the deposit in such fund of— "(A) Federal capital contributions from funds appropriated under section 461; "(B) a capital contribution by such institution in an amount equal to not less than one-ninth of the amount of the Federal capital contributions described in subparagraph (A); "(C) Federal capital contributions from funds provided by the Secretary under section 468;


O—81—pt. 2

11: QL3

20 USC I087ii. infra.

20 USC I087aa. 20 USC 421.

20 USC I087cc.

Ante, p. 1437.