§ 1087ff.
(a)
In general
Beginning October 1, 2017, there shall be a capital distribution of the balance of the student loan fund established under this part by each institution of higher education as follows:
(1)
The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund at the close of September 30, 2017, as the total amount of the Federal capital contributions to such fund by the Secretary under this part bears to the sum of such Federal contributions and the institution’s capital contributions to such fund.
(2)
The remainder of such balance shall be paid to the institution.
(c)
Distribution of excess capital
(1)
Upon a finding by the institution or the Secretary prior to October 1, 2017, that the liquid assets of a student loan fund established pursuant to an agreement under this part exceed the amount required for loans or otherwise in the foreseeable future, and upon notice to such institution or to the Secretary, as the case may be, there shall be, subject to such limitations as may be included in regulations of the Secretary or in such agreement, a capital distribution from such fund. Such capital distribution shall be made as follows:
(A)
The Secretary shall first be paid an amount which bears the same ratio to the total to be distributed as the Federal capital contributions by the Secretary to the student loan fund prior to such distribution bear to the sum of such Federal capital contributions and the capital contributions to the fund made by the institution.
(B)
The remainder of the capital distribution shall be paid to the institution.
(2)
No finding that the liquid assets of a student loan fund established under this part exceed the amount required under paragraph (1) may be made prior to a date which is 2 years after the date on which the institution of higher education received the funds from such institution’s allocation under
section 1087bb of this title.
([Pub. L. 89–329, title IV, § 466], as added [Pub. L. 99–498, title IV, § 405(a)], Oct. 17, 1986, [100 Stat. 1453]; amended [Pub. L. 102–325, title IV, § 466], July 23, 1992, [106 Stat. 584]; [Pub. L. 103–208, § 2(f)(15)], Dec. 20, 1993, [107 Stat. 2471]; [Pub. L. 105–244, title IV, § 466], Oct. 7, 1998, [112 Stat. 1728]; [Pub. L. 110–84, title V, § 501], Sept. 27, 2007, [121 Stat. 801]; [Pub. L. 114–105, § 2(b)], Dec. 18, 2015, [129 Stat. 2220].)