106 STAT. 554 PUBLIC LAW 102-325—JULY 23, 1992 ment of the proceeds of the loan prior to payments to the borrower.
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"(7) DISTRIBUTION OF ORIGINATION PEES. — All origination fees collected pursuant to this section on loans authorized under section 428A or 428B shall be paid to the Secretary by the lender and deposited in the fund authorized under section 431 of this part.". 20 USC 1087-1. (e) DISCOUNTING. —Section 438(d)(2)(C) of the Act is amended by striking "or discount". SEC. 431. STUDENT LOAN MARKETING ASSOCIATION. (a) BOARD OF DIRECTORS. —Subsection (c) of section 439 of the Act (20 U.S.C. 1087-2(c)) is amended to read as follows: "(c) BOARD OF DIRECTORS. — President. "(1) COMPOSITION OF BOARD; CHAIRMAN. — (A) The Association shall have a Board of Directors which shall consist of 21 persons, 7 of whom shall be appointed by the President and shall be representative of the general public. The remaining 14 directors shall be elected by the common stockholders of the Association entitled to vote pursuant to subsection (f). Commencing with the annual shareholders meeting to be held in 1993— "(i) 7 of the elected directors shall be affiliated with an eligible institution; and "(ii) 7 of the elected directors shall be af&liated with an eligible lender. President. "(B) The President shall designate 1 of the directors to serve as Chairman. "(2) TERMS OF APPOINTED AND ELECTED MEMBERS.— The directors appointed by the President shall serve at the pleasure of the Resident and until their successors have been appointed and have qusdified. The remaining directors shall each be elected for a term ending on the date of the next annual meeting of the common stockholders of the Association, and shall serve until their successors have been elected and have qualified. Any appointive seat on the Board which becomes vacant shall be ^led by appointment of the President. Any elective seat on the Board which becomes vacant after the annual election of the directors shall be filled by the Board, but only for the unexpired portion of the term. "(3) AFFILIATED MEMBERS.—For the purpose of this subsection, the references to a director 'affiliated with the eligible institution' or a director 'af&liated with an eligible lender' means an individual who is, or within 5 years of election to the Boeird has been, an employee, officer, director, or similar official of— "(A) an eligible institution or an eligible lender; "(B) an association whose members consist primarily of eligible institutions or eligible lenders; or "(C) a State agency, authority, instrumentaUty, commission, or similar institution, the primary purpose of which relates to educational matters or banking matters. "(4) MEETINGS AND FUNCTIONS OF THE BOARD. —The Board of Directors shall meet at the call of its Chairman, but at least semiannually. The Board shall determine the general poUcies which shall govern the operations of the Association. The Chairman of the Board shml, with the approval of the Board, select, appoint, and compensate qualified persons to
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