PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 521 of State or Federal grant, loan, or work assistance funds; or
- (V) such institution or an owner, director, or ofELcer
of such institution has unpaid fmancial liabilities involving the improper acquisition, expenditure, or refund of State or Federal financial assistance funds; except that, if a guaranty agency limits, suspends, or terminates the participation of an eligible institution, the Secretary shall apply that limitation, suspension, or termination to all locations of such institution, unless the Secretary finds, within 30 days of notification of the action by the guaranty agency, that the guaranty agency's action did not comply with the requirements of tiiis section;", (h) AuDiTO OP LENDERS. —Section 428(b)(l)(U) of the Act is 20 USC i078. amended— (1) in clause (i), by striking "and" at the end thereof; (2) by inserting before the semicolon at the end thereof the following: ", and (iii) for (I) a compliance audit of each lender at least once a year and covering the period since the most recent audit, conducted by a quedified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to the Secretary, or (II) with regard to a lender that is audited under chapter 75 of title 31, United States Code, such audit shall be deemed to satisfy the requirements of subclause (I) for the period covered by such audit, except that the Secretary may waive the requirements of this clause (iii) if the lender submits to the Secretary the results of an audit conducted for other purposes that the Secretary determines provides the same information as the audits required by this clause;". (i) FORBEARANCE.— Section 428(b)(l)(V) of the Act is amended— (1) by striking out "and" at the end of clause (i); (2) in clause (ii), by inserting "or (ii)" after "clause (i)" each place such term appears; (3) by striking the period at the end of clause (ii) and inserting a semicolon; (4) by redesignating clause (ii) as clause (iv); and (5) by inseiting alter clause (i) the following new clauses: "(ii) provides tiiat, if the borrower's debt burden under this title equals or exceeds 20 percent of gross income and the borrower submits a written request, a lender shall grant the borrower forbearance of principal and interest (or principal only at the option of the borrower), and shall renew such forbearance at 12-month intervals for a period not to exceed 3 years, on such terms as are otherwise consistent with the regulations of the Secretary and set forth in writing by the parties to the loan; "(iii) provides that the form of forbearance granted by the lender for purposes of this subparagraph shall be the temporary cessation of payments, unless the borrower selects forbe£u:ance in the form of an extension of time for making payments, or smaller payments than were previously sched\:ded; and".
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