42 U.S.C. § 292x | Distribution of assets from loan funds

(a)

Distribution after termination of fund

section 292q(b) of this titleIf a school terminates a loan fund established under an agreement pursuant to , or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows:

(1)

section 292q(b)(2)(A) of this title section 292q(b)(2)(B) of this title The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termination of the fund as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to .

(2)

The remainder of such balance shall be paid to the school.

(b)

Payment of proportionate share to Secretary

section 292q(b) of this titleIf a capital distribution is made under subsection (a), the school involved shall, after the capital distribution, pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established pursuant to as was determined by the Secretary under subsection (a).

July 1, 1944, ch. 373 Pub. L. 102–408, title I, § 102Oct. 13, 1992106 Stat. 2021(, title VII, § 728, as added , , .)

Editorial Notes

Prior Provisions

July 1, 1944section 294a of this title Pub. L. 102–408A prior section 728 of act , was classified to prior to the general revision of this subchapter by .

July 1, 1944section 293h of this title Pub. L. 94–484Another prior section 728 of act , was classified to prior to renumbering by .