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note. 107 STAT. 370 PUBLIC LAW 103-66—AUG. 10, 1993 (1) in the subsection heading, by striking "PLUS, CONSOLI- DATION," and inserting "CONSOLIDATION"; and (2) by striking "section 428B or 428C" and inserting "section 428C". 20 use 1078-2 (c) EFFECTIVE DATE.—^The amendments made by this section ^°^- shall be effective with respect to loans for which the first disburse- ment is made on or after October 1,1993. SEC. 4110. SECRETARinS EQUITABLE SHARE. (a) AMENDMENT.—Section 428(cX6XAXii) of the Act (20 U.S.C. 1078(cX6XAXii)) is amended by striking "30 percent" and inserting "27 percent". 20 use 1078 (b) EFFECTIVE DATE.—^The amendment made by subsection (a) shall take effect on October 1,1993. SEC. 4111. REDUCTION IN THE SPECIAL ALLOWANCE PAYMENT. Paragraph (2) of section 438(b) of the Act (20 U.S.C. 1087- l(bX2)) is amended— (1) in subparagraph (A)— (A) by striking "and (D)" and inserting "(D), (E), and (F)"; and (B) by striking "427A(e)" and inserting "427A(f)"; and (2) by adding at the end the following new subparagraphs: "(E) In the case of any loan for which the applicable rate of interest is described in section 427A(gX2), subparagraph (AXiii) shall be applied by substituting '2.5 percent for '3.10 percent'. "(F) Subject to paragraph (4), the special cQlowance paid pursuant to this subsection on loans for which the applicable rate of interest is determined under section 427A(h) shall be computed (i) by determining the applicable bond equivalent rate of the security with a comparable maturity, as established by the Secretary, (ii) by subtracting the applicable interest rates on such loans from such applicable bond equivalent rate, (iii) by adding 1.0 percent to the resultant percent, and (iv) by dividing the resultant percent by 4. If such computation produces a number less than zero, such loans shall be subject to section 427A(f).''. SEC. 4112. SUPPLEMENTAL PRECLAIMS ASSISTANCE. (a) AMENDMENT.—Section 428(1X2) of the Act (20 U.S.C. 1078(1X2)) is amended by striking the second sentence and inserting the following: "For each loan on which such assistance is performed and for which a default claim is not presented to the guaranty agency by the lender on or before the 150th day after the loan becomes 120 days delinquent, such payment shall be equal to one percent of the total of the unpaid principal and the accrued unpaid interest of the loan.". 20 use 1078 (b) EFFECTIVE DATE.—The amendment made by this section shall take effect on October 1,1993. Subtitle C—Cost Sharing by States SEC. 4201. COST SHARING BY STATES. (a) AMENDMENT.—Section 428 of the Act (20 U.S.C. 1078) is amended by adding at the end the following new subsection: "(n) STATE SHARE OF DEFAULT COSTS.— note.