20 USC 1072b - Agency Operating Fund

U.S Code last checked for updates: Nov 22, 2024

§ 1072b.

Agency Operating Fund

(a)

Establishment

(b)

Investment of funds

(c)

Additional deposits

After the establishment of the Operating Fund, the guaranty agency shall deposit into the Operating Fund—

(1)

the loan processing and issuance fee paid by the Secretary pursuant to section 1078(f) of this title;

(2)

30 percent of amounts received after October 7, 1998, from the Secretary as payment for administrative cost allowances for loans upon which insurance was issued prior to October 7, 1998;

(3)

the account maintenance fee paid by the Secretary in accordance with section 1087h of this title;

(4)

the default aversion fee paid in accordance with section 1078(l) of this title;

(5)

amounts remaining pursuant to section 1078(c)(6)(B) 1

 See References in Text note below.

of this title from collection on defaulted loans held by the agency, after payment of the Secretary’s equitable share, excluding amounts deposited in the Federal Fund pursuant to section 1072a(c)(2) of this title; and

(6)

other receipts as specified in regulations of the Secretary.

(d)

Uses of funds

(1)

In general

(2)

Special rule

(3)

Definitions

For purposes of this subsection:

(A)

Default collection activities

(B)

Default aversion activities

(C)

Enrollment and repayment status management

(e)

Ownership and regulation of Operating Fund

(1)

Ownership

(2)

Regulation

(3)

Exception

Notwithstanding paragraphs (1) and (2), during any period in which funds are owed to the Federal Fund as a result of transfer under section 1072a(f) of this title—

(A)

moneys in the Operating Fund may only be used for expenses related to the student loan programs authorized under this part; and

(B)

the Secretary may regulate the uses or expenditure of moneys in the Operating Fund.

(Pub. L. 89–329, title IV, § 422B, as added Pub. L. 105–244, title IV, § 413(b), Oct. 7, 1998, 112 Stat. 1677.)

cite as: 20 USC 1072b