PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 651
- (i) the institution's administrative capability and financial responsibility is being determined for the first time;
"(ii) there is a complete or partial change of ownership, as defined under subsection (i), of an eligible institution; or "(iii) the Secretary determines that the institution is, in the judgment of the Secretary, in an administrative or financial condition that may jeopardize its ability to perform its responsibilities under its program participation agreement. "(2) Whenever the Secretsiry withdraws the approved of any accrediting agency, an institution of higher education which meets the requirements of accreditation, eligibility, and certification on the day prior to such withdrawal, the Secretary may, notwithstanding the withdrawal, continue the eligibility of the institution of higher education to participate in the programs authorized by this title for a period not to exceed 18 months from the date of the withdrawal of approval. "(3) If, prior to the end of a period of provisional certification under this subsection, the Secretary determines that the institution is unable to meet its responsibilities under its program participation agreement, the Secretary may terminate the institution's participation in programs under this title. "(i) TREATMENT OF CHANGES OF OWNERSHIP. —(1) For the purpose of certifying the eligibility of an institution, an eligible institution of higher education that has a change in ownership resulting in a change in control shall not be considered to be the same institution (except as provided in paragraph (3)) and shall be considered a new institution for the purpose of establishing eligibility, except that such institution shall not be required (under section 481(b)(5) or 481(c)(3)) to be in existence for 2 years prior to seeking such certification unless such institution was in existence as a brsinch for less than 2 yeeirs. "(2) An action resulting in a change in control may include (but is not limited to)— "(A) the sale of the institution or the majority of its assets; "(B) the transfer of the controlling interest of stock of the institution or its parent corporation; "(C) the merger of two or more eligible institutions; "(D) the division of one or more institutions into two or more institutions; "(E) the transfer of the controlling interest of stock of the institutions to its parent corporation; or "(F) the transfer of the liabilities of the institution to its parent corporation. "(3) An action that may be treated as not resulting in a change in control includes (but is not limited to)— "(A) the death of an owner of an institution, when the owner's interest is sold or transferred to either a family member or a current stockholder of the corporation; or "(B) another action determmed by the Secretary to be a routine business practice, "(j) TREATMENT OF BRANCHES. —(1) For the purposes of this title, a branch of an eligible institution, as defined pursuant to regulations of the Secretary, is a separate institution of higher education and shall separately meet all the requirements of tms title, except that such institution shall not be required (under section 481(b)(5)
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