 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER III--INSTITUTIONAL AID
 
   Part D--Historically Black College and University Capital Financing
 
Sec. 1066c. Limitations on Federal insurance for bonds issued by 
        designated bonding authority
        

(a) Limit on amount

    At no time shall the aggregate principal amount of outstanding bonds 
insured under this part together with any accrued unpaid interest 
thereon exceed $375,000,000, of which--
        (1) not more than $250,000,000 shall be used for loans to 
    eligible institutions that are private historically Black colleges 
    and universities; and
        (2) not more than $125,000,000 shall be used for loans to 
    eligible institutions which are historically Black public colleges 
    and universities.

For purposes of paragraphs (1) and (2), Lincoln University of 
Pennsylvania is an historically Black public institution. No institution 
of higher education that has received assistance under section 123 of 
this title shall be eligible to receive assistance under this part.

(b) Limitation on credit authority

    The authority of the Secretary to issue letters of credit and 
insurance under this part is effective only to the extent provided in 
advance by appropriations Acts.

(c) Religious activity prohibition

    No loan may be made under this part for any educational program, 
activity or service related to sectarian instruction or religious 
worship or provided by a school or department of divinity or to an 
institution in which a substantial portion of its functions is subsumed 
in a religious mission.

(d) Discrimination prohibition

    No loan may be made to an institution under this part if the 
institution discriminates on account of race, color, religion, national 
origin, sex (to the extent provided in title IX of the Education 
Amendments of 1972 [20 U.S.C. 1681 et seq.]), or disabling condition; 
except that the prohibition with respect to religion shall not apply to 
an institution which is controlled by or which is closely identified 
with the tenets of a particular religious organization if the 
application of this section would not be consistent with the religious 
tenets of such organization.

(Pub. L. 89-329, title III, Sec. 344, formerly title VII, Sec. 724, as 
added Pub. L. 102-325, title VII, Sec. 704, July 23, 1992, 106 Stat. 
745; renumbered title III, Sec. 344, Pub. L. 105-244, title III, 
Sec. 301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636.)

                       References in Text

    The Education Amendments of 1972, referred to in subsec. (d), is 
Pub. L. 92-318, June 23, 1972, 86 Stat. 235, as amended. Title IX of the 
Act is classified principally to chapter 38 (Sec. 1681 et seq.) of this 
title. For complete classification of this Act to the Code, see Short 
Title of 1972 Amendment note set out under section 1001 of this title 
and Tables.

                          Codification

    Section was formerly classified to section 1132c-3 of this title 
prior to renumbering by Pub. L. 105-244.


                            Prior Provisions

    A prior section 344 of Pub. L. 89-329 was classified to section 1069 
of this title prior to the general amendment of this subchapter by Pub. 
L. 99-498.

                  Section Referred to in Other Sections

    This section is referred to in sections 1066a, 1066b of this title.
