PUBLIC LAW 96-374—OCT. 3, 1980
94 STAT. 1451
"(c) There are authorized to be appropriated $1,000,000 to carry out the provisions of this section for fiscal year 1981 and for each of the succeeding fiscal years ending prior to October 1, 1985.
Appropriation authorization.
PROGRAM PARTICIPATION AGREEMENTS
"SEC. 487. (a) In order to be an eligible institution for the purposes 20 USC 1094. of any program authorized under this title, an institution must be an institution of higher education or an eligible institution (as that term is defined for purposes of that program) and shall, except with respect to a program under subpart 3 of part A, enter into a program 20 USC 1070c. participation agreement with the Secretary. The agreement shall condition the initial and continuing eligibility of an institution to participate in a program upon compliance with the following requirements: "(1) The institution will use funds received by it for any program under this title solely for the purposes specified in, and in accordance with, the provisions of that program. "(2) In the case of an institution participating in any program authorized under subpart 2 of part A or part C of this title for any 20 USC 1070b, 42 fiscal year, the institution will continue to spend in its own u s e 2751. scholarship and student aid program, from sources other than funds received under such parts, not less than the average expenditures per year made for that purpose during the most recent period of three fiscal years preceding the effective date of the program participation agreement, except that, under special and unusual circumstances prescribed by regulation, the Secretary is authorized to waive the requirements of this paragraph. ' (3) The institution will establish and maintain such administrative and fiscal procedures and records as may be necessary to ensure proper and efficient administration of funds received from the Secretary or from students under this title. "(4) The institution will comply with the provisions of subsection (b) of this section and the regulations prescribed under that subsection, relating to fiscal eligibility. "(5) The institution will submit reports to the Secretary and, in the case of an institution participating in a program under part B or part E, to holders of loans made to the institution's students 20 USC 1071, under such parts at such times and containing such information 1088. as the Secretary may reasonably require to carry out the purposes of this title. "(6) The institution will comply with the requirements of section 485. "(b)(1) Notwithstanding any other provisions of this title, the Regulations. Secretary is authorized to prescribe such regulations as may be necessary to provide for— "(A) a fiscal audit of an eligible institution with regard to any funds obtained by it under this title or obtained from a student who has a loan insured or guaranteed by the Secretary under this title; "(B) the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid under this title; "(C) the establishment, by each eligible institution under part B responsible for furnishing to the lender the statement required by section 428(a)(2)(A)(i), of policies and procedures by which the 20 USC 1078. latest known address and enrollment status of any student who
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