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107 STAT. 368 PUBLIC LAW 103-66—AUG. 10, 1993 "(B) If the Secretary determines that the Association has substantially failed to comply with subsection (q), subparagraph (A) shall be applied by substituting '1.0 percent' for *0.3 percent'. "(C) The Secretary shall deposit all fees collected pursuant to this paragraph into the insurance fimd established in section 431.". SEC. 410S. ELIMINATION OF TAX EXEMPT FLOOR. Section 438(bX2)(B) of the Act (20 U.S.C. 1087-l(bX2XB)) is amended by adding at the end the following new clause: "(iv) Notwithstanding clauses (i) and (ii), the quarterly rate of the special allowance for holders of loans wnich are financed with fluids obtained by the holder from the issuance of obligations originally issued on or after October 1, 1993, the income from which is excluded from gross income under the Internal Revenue Code of 1986, shall be the quarterly rate of the special allowance established under subparagraph (A), (E), or (F), as the case may be. Such rate shall also apply to holders of loans which were made or purchased with fluids obtained by the holder from collections or default reimbursements on, or interest or other income pertaining to, eligible loans made or purchased with funds descnbed in the preceding sentence of this subparagraph or from income on the investment of such funds.". SEC. 4106. REDUCTION IN INTEREST RATE FOR CONSOLIDATION LOANS; REBATE FEE. (a) AMENDMENT.—Section 428C of the Act (20 U.S.C. 1078- 3) is amended by adding at the end the following new subsection: "(0 INTEREST PAYMENT REBATE FEE.— "(1) IN GENERAL.—^For any month beginning on or after October 1, 1993, each holder of a consolidation loan under this section for which the first disbursement was made on or after October 1, 1993, shall pay to the Secretary, on a monthly basis and in such manner as the Secretary shall pre- scribe, a rebate fee calculated on an annual basis equal to 1.05 percent of the principal plus accrued unpaid interest on such loan. "(2) DEPOSIT.—^The Secretary shall deposit all fees collected pursuant to subsection (a) into the insurance fund established in section 431.". (b) ENFORCEMENT.—Subsection (d) of section 435 of the Act (20 U.S.C. 1085(d)) is amended— (1) in the matter preceding subparagraph (A) of paragraph (1), by strikinff "(5)" and inserting "(6)"; and (2) by adding at the end the following new paragraph: "(6) REBATE FEE REQUIREMENT.—^To be an eligible lender under this part, an eligible lender shall pay rebate fees in accordance with section 428C(f).". SEC. 4107. REINSURANCE FEES AND ADMINISTRATIVE COST ALLOW- ANCE. (a) REINSURANCE FEES.—Section 428(c) of the Act (20 U.S.C. 1078(c)) is amended— (1) by striking paragraph (9); and (2) by redesignating paragraph (10) as paragraph (9). (b) ADMINISTRATIVE COST ALLOWANCE.—Section 428(f)(1) of the Act (20 U.S.C. 1078(f)(1)) is amended—