100 STAT. 1376
\:
"-
PUBLIC LAW 99-498—OCT. 17, 1986
i' accrued interest of any insured loan, including the administrative costs of supplemental preclaim assistance for default prevention as defined in paragraph (6)(C). The guaranty agency shall be deemed to have a contractual right against the United States, during the life of such loan, to receive reimbursement . according to the provisions of this subsection. Upon receipt of an •* accurate and complete request by a guaranty agency for reimbursement with respect to such losses, the Secretary shall 1' pay promptly and without administrative delay. Except as provided in subparagraph (B) of this paragraph and in paragraph ' (7), the amount to be paid a guaranty agency as reimbursement ' under this subsection shall be equal to 100 percent of the amount expended by it in discharge of its insurance obligation incurred under its loan insurance program. In no case shall a guaranty agency file a claim under this subsection for reimbursement with respect to losses prior to 270 days after the loan becomes delinquent with respect to any installment thereon. "(B) Notwithstanding subparagraph (A)— "(i) if, for any fiscal year, the amount of such reimbursement payments by the Secretary under this subsection exceeds 5 percent of the loans which are insured by such guaranty agency under such program and which were in repayment at the end of the preceding fiscal year, the amount to be paid as reimbursement under this subsection for such excess shall be equal to 90 percent of the amount of .-,. such excess; and "(ii) if, for any fiscal year, the amount of such reimburse,.:' ment payments exceeds 9 percent of such loans, the amount ^ to be paid as reimbursement under this subsection for such J. excess shall be equal to 80 percent of the amount of such excess. "(C) For the purpose of this subsection, the amount of loans of ,,. a guaranty agency which are in repayment shall be the original J principal amount of loans made by a lender which are insured
- • by such a guaranty agency reduced by—
" "(i) the amount the insurer has been required to pay to discharge its insurance obligations under this part; "(ii) the original principal amount of loans insured by it which have been fully repaid; and "(iii) the original principal amount insured on those loans '^di 'x for which payment of the first installment of principal has not become due pursuant to subsection (b)(1)(E) of this
section or such first installment need not be paid pursuant i{ to subsection (b)(l)(M) of this section. "(2) CONTENTS OF GUARANTY AGREEMENTS.—The guaranty
'"> agreement— "(A) shall set forth such administrative and fiscal procedures as may be necessary to protect the United States from the risk of unreasonable loss thereunder, to ensure •&' proper and efficient administration of the loan insurance program, and to assure that due diligence will b*^ exercised ft in the collection of loans insured under the program, Oi including a requirement that each beneficiary of insurance €>.l. on the loan submit proof that reasonable a t t e m p t s were H' .' m a d e to locate the borrower (when the location of the
�
