Page:United States Statutes at Large Volume 107 Part 3.djvu/541

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PUBLIC LAW 103-208—DEC. 20, 1993 107 STAT. 2479 a reliable authority as to the quahty of education or training offered by an institution seeking to participate in the programs authorized under this title"; (7) in section 496(1)(2)— (A) by striking "institutution" and inserting "institution"; and (B) by striking "association leading to the suspension" and inserting "association, described in paragraph (2)(A)(i), (2)(B), or (2)(C) of subsection (a) of this section, leading to the suspension"; (8) in section 496(n)(l), by amending subparagraph (B) to read as follows: "(B) site visits, including unannounced site visits as appropriate, at accrediting agencies and associations, and, at the Secretary's discretion, at representative member institutions."; (9) in section 498(c>— (A) in paragraph (2), by adding at the end the following new sentences: "Such criteria shall take into account any differences in generally accepted accounting principles, and the financial statements required thereunder, that are applicable to for profit and nonprofit institutions. The Secretary shall take into account an institution's total financial circumstances in making a determination of its ability to meet the standards herein required."; (B) in the matter preceding subparagraph (A) of paragraph (3), by striking "may determine" and inserting "shall determine"; (C) by amending subparagraph (C) of paragraph (3) to read as follows: "(C) such institution establishes to the satisfaction of the Secretary, with the support of a financial statement audited by an independent certified public accountant in accordance with generally accepted auditing standards, that the institution has sufficient resources to ensure against the precipitous closure of the institution, including the ability to meet all of its financial obligations (including refunds of institutional charges and repayments to the Secretary for liabilities and debts incurred in programs administered by the Secretary); or"; (D) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and (E) by inserting after paragraph (3) the following new paragraph: "(4) If an institution of higher education that provides a 2- year or 4-year program of instruction for which the institution awards an associate or baccalaureate degree fails to meet the ratio of current assets to current liabilities imposed by the Secretary pursuant to paragraph (2), the Secretary shall waive that particular requirement for that institution if the institution demonstrates to the satisfaction of the Secretary that— "(A) there is no reasonable doubt as to its continued solvency and abihty to deliver quality educational services; "(B) it is current in its payment of all current liabilities, including student refunds, repayments to the Secretary, payroll, and payment of trade creditors and withholding taxes; and 20 USC 1099b. 20 USC 1099c.