PUBLIC LAW 90-460-AUG, 3, 1968
istration of the loan insurance program, and to assure that due diligence will be exercised in the collection of loans insured under the program; " (B) shall provide for making such reports, in such form and containing such information, as the Commissioner may reasonably require to carry out his functions under this subsection, and for keeping such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports; " (C) shall set forth adequate assurance that, with respect to so much of any loan insured under the loan insurance program as may be guaranteed by the Commissioner pursuant to this subsection, the undertaking of the Commissioner under the guaranty agreement is acceptable in full satisfaction of State law or regulation requiring the maintenance of a reserve; " (D) shall provide that if, after the Commissioner has made payment under the guaranty agreement pursuant to paragraph (1) of this subsection with respect to any loan, any payments are made in discharge of the obligation incurred by the borrower with respect to such loan (including any payments of interest accruing on such loan after such payment by the Commissioner), there shall be paid over to the Commissioner (for deposit in the fund established by section 431) such proportion of the amounts of such payments as is determined (m accordance with regulations prescribed by the Commissioner) to represent his equitable share thereof, but shall not otherwise provide for subrogation of the United States to the rights of any insurance beneficiary: Provided, That, except as the Commissioner may otherwise by or pursuant to regulation provide, amounts so paid by a ijorrower on such a loan shall be first applied in reduction of principal owing on such loan; and " (E) may include such other provisions as may be necessary to promote the purposes of this part. "(3) To the extent provided in regulations of the Commissioner, a ^ a r a n t y agreement under this subsection may contain provisions which permit such forbearance for the benefit of the student borrower as may be agreed upon hj the parties to an insured loan and approved by the insurer. Nothing in this subsection shall be construed to require collection of the amount of any loan by the insurance beneficiary or its insurer from the estate of a deceased borrower or from a borrower found by the insurance beneficiary or its insurer to have become permanently and totally disabled. "(4) For purposes of this subsection— " (A) the terms 'insurance beneficiary' and 'default' shall have the meanings assigned to them by section 430(e), and " (B) permanent and total disability shall be determined in accordance with regulations of the Commissioner. "(5) In the case of any guaranty agreement entered into prior to October 31, 1968, with a State or nonprofit private institution or organization with which the Commissioner has in effect on that date an agreement pursuant to subsection (b) of this section, or section 9(b) of the National Vocational Student Loan Insurance Act of 1965, made prior to the date of enactment of this subsection, the Commissioner may, in accordance with the terms of this subsection, undertake to guarantee loans described in paragraph (1) which are insured by such
20 USC 1081.
"Insurance beneficiary"; "default." 79 Stat. 1244. 20 USC 1080.
79 Stat. 1042. Ante, p. 635. 20 USC 988.