§ 1081. Insurance fund
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(a)Establishment There is hereby established a student loan insurance fund (hereinafter in this section called the “fund”) which shall be available without fiscal year limitation to the Secretary for making payments in connection with the default of loans insured by the Secretary under this part, or in connection with payments under a guaranty agreement under section 1078(c) of this title. All amounts received by the Secretary as premium charges for insurance and as receipts, earnings, or proceeds derived from any claim or other assets acquired by the Secretary in connection with operations under this part, any excess advances under section 1072 of this title, and any other moneys, property, or assets derived by the Secretary from operations in connection with this section, shall be deposited in the fund. All payments in connection with the default of loans insured by the Secretary under this part, or in connection with such guaranty agreements shall be paid from the fund. Moneys in the fund not needed for current operations under this section may be invested in bonds or other obligations guaranteed as to principal and interest by the United States.
(b)Borrowing authority If at any time the moneys in the fund are insufficient to make payments in connection with the default of any loan insured by the Secretary under this part, or in connection with any guaranty agreement made under section 1078(c) of this title, the Secretary is authorized, to the extent provided in advance by appropriations Acts, to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Secretary with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations issued hereunder and for that purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under that chapter, are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Sums borrowed under the subsection shall be deposited in the fund and redemption of such notes and obligations shall be made by the Secretary from such fund.
(Pub. L. 89–329, title IV, § 431, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1400; amended Pub. L. 100–50, § 10(w), June 3, 1987, 101 Stat. 346.)
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Cited by 19 sections · top 16
U.S. Code
statutes-at-large
- Public Law 90–457
- Public Law 91–377
- Public Law 89–787
- Public Law 90–575
- Public Law 91–204
- Public Law 99–272To provide for reconciliation pursuant to section 2 of the first concurrent resolution on the budget for fiscal year 1986 (S
- Public Law 95–480Making appropriations for the Departments of Labor, and Health, Education, and Welfare, and related agencies, for the fiscal year ending September 30, 1979, and for other purposes
- Public Law 94–482To extend the Higher Education Act of 1995, to extend and revise the Vocational Education Act of 1983, and for other purposes
- Public Law 99–498To reauthorize and revise the Higher Education Act of 1965, and for other purposes
- Public Law 100–50To make certain technical and conforming amendments in the Higher Education Act of 1965, and for other purposes
- Public Law 105–244To extend the authorization of programs under the Higher Education Act of 1965, and for other purposes
statute-compilations
20 references not yet in our index
- Pub. L. 89–329, title IV, § 431
- Pub. L. 99–498, title IV, § 402(a)
- 100 Stat. 1400
- Pub. L. 100–50, § 10(w)
- 101 Stat. 346
- Pub. L. 97–258, § 4(b)
- 96 Stat. 1067
- 79 Stat. 1245
- Pub. L. 90–460, § 3(c)
- 82 Stat. 638
- Pub. L. 94–482, title I, § 127(a)
- 90 Stat. 2126
- Pub. L. 96–374, title XIII, § 1391(a)(1)
- 94 Stat. 1503
- Pub. L. 99–498
- Pub. L. 100–50
- section 27 of Pub. L. 100–50
- Pub. L. 105–244, title IV, § 434
- 112 Stat. 1711
- section 116(c)(2) of Pub. L. 90–575
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§ 1081
Insurance fund
Stat.×13
U.S.C.×5
Stat. Comp.×1
Pub. L.Pub. L. 89–329, title IV, § 431
Pub. L.Pub. L. 99–498, title IV, § 402(a)
Stat.100 Stat. 1400
Pub. L.Pub. L. 100–50, § 10(w)
Stat.101 Stat. 346
Cites 24 · showing 9Cited by 19 across 3 sources