Page 45

107 STAT. 356 PUBLIC LAW 103-66—AUG. 10, 1993 institution located in a geographic area for which the Sec- retary (I) determines that loans are not available to all eligible students, and (II) has entered into an agreement with a guaranty agency under paragraph (IXB) to provide lender referral services; and"; (3) in paragraph (3), by striking "The" and inserting "From fimds available for costs of transition under section 458 of the Act, the"; and (4) by striking paragraph (5). (c) LENDER-OF-LAST-RESORT FUNCTIONS OF STUDENT LOAN MAWCETING AssociATiON.^^ubsection (q) of section 439 of the Act (20 U.S.C. 1087-2(q)) is amended to read as follows: "(q) LENDER-OF-LAST-RESORT.— "(1) ACTION AT REQUEST OF SECRETARY.—<A) Whenever the Secretary determines that eligible borrowers are seeking and are unable to obtain loans under this part, the Association or its designated agent shall, not later than 90 days after the date of enactment of the Student Loan Reform Act of 1993, begin making loans to such eligible borrowers in accord- ance with this subsection at the request of the Secretary. The Secretary may request that the Association make loans to borrowers within a geographic area or for the benefit of students attending institutions of higher education that certify, in accord- ance with standards established by the Secretary, that their students are seeking and imable to obtain loans. "(B) Loans made pursuant to this subsection shall be insur- able by the Secretary under section 429 with a certificate of comprehensive insurance coverage provided for under section 429(bXl) or by a guaranty agency imder paragraph (2)(A) of this subsection. "(2) ISSUANCE AND COVERAGE OF LOANS.—(A) Whenever the Secretary, after consultation with, and with the agreement of, representatives of the guaranty agency in a State, or an eligible lender in a State described in section 435(dXlXD), determines that a substantial portion of eligible borrowers in such State or within an area of such State are seeking and are unable to obtain loans under this part, the Association or its designated agent shall begin making such loans to borrow- ers in such State or within an area of such State in accordance with this subsection at the request of the Secretary. "(B) Loans made pursuant to this subsection shall be insur- able by the agency identified in subparagraph (A) having an agreement pursuant to section 428(b). For loans insured by such agency, the agency shall provide the Association with a certificate of comprehensive insurance coverage, if the Association and the agency have mutually agreed upon a means to determine that the agency has not already guaranteed a loan under this part to a student which would cause a subse- quent loan made by the Association to be in violation of any provision imder this part. "(3) TERMINATION OF LENDING.—The Association or its des- ignated agent shall cease making loans under this subsection at such time as the Secretory determines that the conditions which caused the implementotion of this subsection have ceased to exist.".