42 U.S.C. § 292j — Powers and responsibilities of Secretary

Page 1000 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292i A prior section 709 of act July 1, 1944, was classified to section 292i of this title prior to repeal by Pub. L. 97–35, title XXVII, § 2720(a), Aug. 13, 1981, 95 Stat. 915. AMENDMENTS 1998—Subsec. (b). Pub. L. 105–392 inserted ‘‘and’’ at end of par. (4)(B), substituted a period for ‘‘; and’’ at end of par. (5), and struck out par. (6) which read as fol- lows: ‘‘prepare and submit a report not later than March 31, 1993, and annually, thereafter, to the Com- mittee on Labor and Human Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives concerning— ‘‘(A) the default rates for each— ‘‘(i) institution described in section 292o(1) of this title that is participating in the loan programs under this subpart; ‘‘(ii) lender participating in the loan program under this subpart; and ‘‘(iii) loan holder under this subpart; ‘‘(B) the total amounts recovered pursuant to sec- tion 292f(b) of this title during the preceding fiscal year; and ‘‘(C) a plan for improving the extent of such recov- eries during the current fiscal year.’’ § 292i. Insurance account (a) In general (1) Establishment There is hereby established a student loan insurance account (in this section referred to as the ‘‘Account’’) which shall be available without fiscal year limitation to the Sec- retary for making payments in connection with the collection and default of loans in- sured under this subpart by the Secretary. (2) Funding (A) Except as provided in subparagraph (B), all amounts received by the Secretary as pre- mium charges for insurance and as receipts, earnings, or proceeds derived from any claim or other assets acquired by the Secretary in connection with his operations under this sub- part, and any other moneys, property, or as- sets derived by the Secretary from the oper- ations of the Secretary in connection with this section, shall be deposited in the Account. (B) With respect to amounts described in subparagraph (A) that are received by the Sec- retary for fiscal year 1993 and subsequent fis- cal years, the Secretary may, before depos- iting such amounts in the Account, reserve from the amounts each such fiscal year not more than $1,000,000 for obligation under sec- tion 292h(d) of this title. (3) Expenditures All payments in connection with the default of loans insured by the Secretary under this subpart shall be paid from the Account. (b) Contingent authority for issuance of notes or other obligations If at any time the moneys in the Account are insufficient to make payments in connection with the collection or default of any loan in- sured by the Secretary under this subpart, the Secretary of the Treasury may lend the Account such amounts as may be necessary to make the payments involved, subject to the Federal Cred- it Reform Act of 1990 [2 U.S.C. 661 et seq.]. (July 1, 1944, ch. 373, title VII, § 710, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2007; amended Pub. L. 105–392, title I, § 143, Nov. 13, 1998, 112 Stat. 3581.) Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsec. (b), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title of 1990 Amendment note set out under sec- tion 621 of Title 2 and Tables. PRIOR PROVISIONS A prior section 292i, act July 1, 1944, ch. 373, title VII, § 709, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 207, 90 Stat. 2252; amended Nov. 9, 1978, Pub. L. 95–623, § 12(b), 92 Stat. 3457, related to shared schedule resi- dency training positions, prior to repeal by Pub. L. 97–35, title XXVII, § 2720(a), Aug. 13, 1981, 95 Stat. 915. Another prior section 292i, act July 1, 1944, ch. 373, title VII, § 710, as added July 30, 1956, ch. 779, § 2, 70 Stat. 720; amended Sept. 24, 1963, Pub. L. 88–129, § 2(a), 77 Stat. 164; Nov. 18, 1971, Pub. L. 92–157, title I, § 102(k)(2)(A), 85 Stat. 437, related to preparation and submission of an- nual reports to the Congress through the President, in- cluding its contents, as to grants for construction of health research facilities, prior to repeal by Pub. L. 94–484, title II, § 201(a), Oct. 12, 1976, 90 Stat. 2246. A prior section 710 of act July 1, 1944, was classified to section 292k of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 710 of act July 1, 1944, was re- numbered section 709 by Pub. L. 97–35 and was classified to section 292j of this title prior to the general revision of this subchapter by Pub. L. 102–408. AMENDMENTS 1998—Subsec. (a)(2)(B). Pub. L. 105–392 substituted ‘‘fiscal year 1993 and subsequent fiscal years’’ for ‘‘any of the fiscal years 1993 through 1996’’. § 292j. Powers and responsibilities of Secretary (a) In general In the performance of, and with respect to, the functions, powers, and duties vested in the Sec- retary by this subpart, the Secretary is author- ized as follows: (1) To prescribe such regulations as may be necessary to carry out the purposes of this subpart. (2) To sue and be sued in any district court of the United States. Such district courts shall have jurisdiction of civil actions arising under this subpart without regard to the amount in controversy, and any action instituted under this subsection by or against the Secretary shall survive notwithstanding any change in the person occupying the office of Secretary or any vacancy in that office. No attachment, in- junction, garnishment, or other similar proc- ess, mesne or final, shall be issued against the Secretary or property under the control of the Secretary. Nothing herein shall be constructed to except litigation arising out of activities under this subpart from the application of sec- tions 517 and 547 of title 28. (3) To include in any contract for Federal loan insurance such terms, conditions, and covenants relating to repayment of principal and payments of interest, relating to his obli- gations and rights and to those of eligible Page 1001 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292n 1 So in original. Probably should be ‘‘of’’. lenders, and borrowers in case of default, and relating to such other matters as the Sec- retary determines to be necessary to assure that the purposes of this subpart will be achieved. Any term, condition, and covenant made pursuant to this paragraph or any other provisions of this subpart may be modified by the Secretary if the Secretary determines that modification is necessary to protect the finan- cial interest of the United States. (4) Subject to the specific limitations in the subpart, to consent to the modification of any note or other instrument evidencing a loan which has been insured by him under this sub- part (including modifications with respect to the rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision). (5) To enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right or 1 redemption. (b) Annual budget; accounts The Secretary shall, with respect to the finan- cial operations arising by reason of this sub- part— (1) prepare annually and submit a budget program as provided for wholly owned Govern- ment corporations by chapter 91 of title 31; and (2) maintain with respect to insurance under this subpart an integral set of accounts. (July 1, 1944, ch. 373, title VII, § 711, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2007.) Editorial Notes CODIFICATION In subsec. (b)(1), ‘‘chapter 91 of title 31’’ was sub- stituted for ‘‘the Government Corporation Control Act’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. PRIOR PROVISIONS A prior section 292j, act July 1, 1944, ch. 373, title VII, § 709, formerly § 710, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 208, 90 Stat. 2252; renumbered § 709 and amended Aug. 13, 1981, Pub. L. 97–35, title XXVII, §§ 2720(b), 2721, 95 Stat. 915; Oct. 22, 1985, Pub. L. 99–129, title II, § 206, 99 Stat. 527, related to payment under grants, prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 292j, act July 1, 1944, ch. 373, title VII, § 711, as added Sept. 24, 1963, Pub. L. 88–129, § 3(b), 77 Stat. 173; amended Nov. 18, 1971, Pub. L. 92–157, title I, § 102(k)(2)(A), 85 Stat. 437, provided for technical assistance in connection with grants for construction of health research facilities, prior to repeal by Pub. L. 94–484, title II, § 201(a), Oct. 12, 1976, 90 Stat. 2246. § 292k. Participation by Federal credit unions in Federal, State, and private student loan in- surance programs Notwithstanding any other provision of law, Federal credit unions shall, pursuant to regula- tions of the Administrator of the National Cred- it Union Administration, have power to make insured loans to eligible students in accordance with the provisions of this subpart relating to Federal insured loans. (July 1, 1944, ch. 373, title VII, § 712, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2008.) Editorial Notes PRIOR PROVISIONS A prior section 292k, act July 1, 1944, ch. 373, title VII, § 710, formerly § 711, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 209, 90 Stat. 2253; renumbered § 710 and amended Aug. 13, 1981, Pub. L. 97–35, title XXVII, §§ 2720(b), 2722, 95 Stat. 915, related to differential tui- tion and fees, prior to the general revision of this sub- chapter by Pub. L. 102–408. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS Functions vested in Administrator of National Credit Union Administration transferred and vested in Na- tional Credit Union Administration Board pursuant to section 1752a of Title 12, Banks and Banking. § 292l. Determination of eligible students For purposes of determining eligible students under this part, in the case of a public school in a State that offers an accelerated, integrated program of study combining undergraduate premedical education and medical education leading to advanced entry, by contractual agree- ment, into an accredited four-year school of medicine which provides the remaining training leading to a degree of doctor of medicine, when- ever in this part a provision refers to a student at a school of medicine, such reference shall in- clude only a student enrolled in any of the last four years of such accelerated, integrated pro- gram of study. (July 1, 1944, ch. 373, title VII, § 713, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2008.) § 292m. Repayment by Secretary of loans of de- ceased or disabled borrowers If a borrower who has received a loan dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Secretary), the Secretary shall discharge the borrower’s liability on the loan by repaying the amount owed on the loan from the account established under section 292i of this title. (July 1, 1944, ch. 373, title VII, § 714, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2008.) § 292n. Additional requirements for institutions and lenders (a) In general Notwithstanding any other provision of this subpart, the Secretary is authorized to prescribe such regulations as may be necessary to provide for— (1) a fiscal audit of an eligible institution with regard to any funds obtained from a bor- rower who has received a loan insured under this subpart; (2) the establishment of reasonable stand- ards of financial responsibility and appro-