106 STAT. 528 PUBLIC LAW 102-325—JULY 23, 1992 "(C) No payment may be made under this paragraph for loans for which the disbursement checks have not been cashed or for which electronic funds transfers have not been completed.", (r) LENDERS-OP-LAST-RESORT. —Subsection (j) of section 428 of 20 USC 1078. the Act is amended— (1) by striking "(j) LENDERS-OF-LAST-RESORT. — " and inserting the following: "(j) LENDERS-OF-LAST-RESORT. — "(1) GENERAL REQUIREMENT.— "; (2) by indenting the margin of the text of such subsection by 2 em spaces; and (3) by adding at the end the following new paragraphs: "(2) RULES AND OPERATING PROCEDURES. —The guaranty agency shall develop rules and operating procedures for the lender oflast resort program designed to ensure that— "(A) the program establishes operating hours and methods of application designed to facilitate application by students; "(B) information about the availability of loans under the program is made available to institutions of higher education in the State; "(C) appropriate steps are taken to ensure that borrowers receiving loans under the progrsim are appropriately counseled on their loan obligation; and "(D) the guaranty agency notifies the Secretary when the guaranty agency believes or has reason to believe that the Secretary may need to exercise the Secretary's authority under section 439(q). "(3) LIMITATION ON LENDER-OF-LAST-RESORT PROGRAM.— (A) Subject to the provisions of subparagraphs (B) and (C), a guaranty agency or eligible lender is not required to make loans described in this section for attendsuice at an institution which— "(i) has a cohort default rate, as defined in section 435(m), which exceeds 25 percent for the most recent year for which a rate has been calculated by the Secretary; "(ii) has not been eligible for, and has not participated in, the loan program under this part during the most recent 18 consecutive months; or "(iii) is currently subject to an emergency action or limitation, suspension, or termination proceeding of any guaranty agency or the Secretsiry. Termination "(B) Until July 1, 1994, this paragraph shall not apply to
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any institution that is— "(i) a part B institution within the mesuiing of section 322(2) of this Act; " (ii) a tribally controlled community college within the meaning of section 2(a)(4) of the Tribally Controlled Community College Assistance Act of 1978; or "(iii) a NavEo'o Community College under the Navajo Community College Act. "(C) Notwithstanding the provisions of subparagraph (A), the Secretary may require a guarsmty agency or other eligible lender to make loans described in this section for attendance at an institution if there are, in the judgment of the Secretary,
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