112 STAT. 1588 PUBLIC LAW 105-244—OCT. 7, 1998 degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent. "(4) LIMITATIONS BASED ON MANAGEMENT.— An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if— "(A) the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that files for bankruptcy under chapter 11 of title 11, United States Code, between July 1, 1998, and December 1, 1998; or "(B) the institution, the institution's owner, or the institution's chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under title IV, or has been judicially determined to have committed fraud involving funds under title IV. "(5) CERTIFICATION.—The Secretary shall certify an institution's qualification as an institution of higher education in accordance with the requirements of subpart 3 of part H of title IV. "(6) Loss OF ELIGIBILITY. — An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under title IV as a result of an action pursuant to part H of title IV. "(b) PROPRIETARY INSTITUTION OF HIGHER EDUCATION.— "(1) PRINCIPAL CRITERIA.— For the purpose of this section, the term 'proprietary institution of higher education' means a school that— "(A) provides an eligible program of training to prepare students for gainful employment in a recognized occupation; "(B) meets the requirements of paragraphs (1) and (2) of section 101(a); "(C) does not meet the requirement of paragraph (4) of section 101(a); "(D) is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part H of title IV; "(E) has been in existence for at least 2 years; and Regulations. "(F) has at least 10 percent of the school's revenues from sources that are not derived from funds provided under title IV, as determined in accordance with regulations prescribed by the Secretary.
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