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107 STAT. 360 PUBLIC LAW 103-66—AUG. 10, 1993 loan programs under this part to the direct student loan programs under part D of this title."; and (iii) by redesignating such clause as clause (vii); and (D) by inserting after clause (v) the following new clause: "(vi) use all funds and assets of the guaranty agency to assist in the activities undertaken in accordance with this subparagraph and take appropriate action to reqmre the retiim, to the guaranty agency or the Secretary, of any funds or assets provided by the guaranty agency, luider contract or otherwise, to any person or organization; or"; (5) by striking subparagraph (G); (6) by redesignating subparagraphs (H), (I), and (J) as subparagraphs (I), (J), and (K), respectively; (7) by inserting after subparagraph (F) the following new subparagraphs: "(G) Notwithstanding £uiy other provision of Federal or State law, if the Secretary has terminated or is seeking to terminate a guaranty agenc/s agreement under subparagraph (E), or has assumed a guaranty agency's functions under subparagraph (F)— "(i) no State court may issue any order afTecting the Secretary's actions with respect to such guaranty agency; "(ii) any contract with respect to the administration of a guaranty agency's reserve funds, or the administration of any assets purchased or acquired with the reserve funds of the guaranty agency, that is entered into or extended by the guaranty agency, or any other party on behalf of or with the concurrence of the guaranty agency, after the date of enactment of this subparagraph shall provide that the contract is terminable by the Secretary upon 30 days notice to the contracting parties if the Secretary determines that such contract includes an impermissible transfer of the reserve funds or assets, or is otherwise inconsistent with the terms or purposes of this section; and "(iii) no provision of State law shall apply to the actions of the Secretary in terminating the operations of a guaranty agency. "(H) Notwithstanding any other provision of law, the Sec- retary's liability for any outstanding liabilities of a guaranty agency (other than outstanding student loan guarantees under tMs part), the functions of which the Secretary has assumed, shall not exceed the fair market value of the reserves of the guaranty agency, minus any necessary liquidation or other administrative costs."; and (8) in subparagraph (K) (as redesignated by paragraph (5)), by striking all beginning with "system, together" through the period and inserting "system and the progress of the transi- tion from the loan programs under this part to the direct student loan programs under part D of this title.". SEC. 4046. CONSOLIDATION LOANS. (a) COST SAVINGS FROM CONSOLIDATION LOANS.—Section 428C of the Act (20 U.S.C. 1078-3) is amended—