 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
              Part B--Federal Family Education Loan Program
 
Sec. 1086. Delegation of functions


(a) In general

    An eligible lender or guaranty agency that contracts with another 
entity to perform any of the lender's or agency's functions under this 
subchapter and part C of subchapter I of chapter 34 of title 42, or 
otherwise delegates the performance of such functions to such other 
entity--
        (1) shall not be relieved of the lender's or agency's duty to 
    comply with the requirements of this subchapter and part C of 
    subchapter I of chapter 34 of title 42; and
        (2) shall monitor the activities of such other entity for 
    compliance with such requirements.

(b) Special rule

    A lender that holds a loan made under this part in the lender's 
capacity as a trustee is responsible for complying with all statutory 
and regulatory requirements imposed on any other holder of a loan made 
under this part.

(Pub. L. 89-329, title IV, Sec. 436, as added Pub. L. 99-498, title IV, 
Sec. 402(a), Oct. 17, 1986, 100 Stat. 1413; amended Pub. L. 105-244, 
title IV, Sec. 430, Oct. 7, 1998, 112 Stat. 1709.)


                            Prior Provisions

    A prior section 1086, Pub. L. 89-329, title IV, Sec. 436, as added 
Pub. L. 89-752, Sec. 12, Nov. 3, 1966, 80 Stat. 1244; amended Pub. L. 
90-575, title I, Sec. 116(b)(5), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 
94-482, title I, Sec. 127(a), Oct. 12, 1976, 90 Stat. 2132; Pub. L. 96-
374, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, related 
to a District of Columbia student loan insurance program, prior to the 
general revision of this part by Pub. L. 99-498.


                               Amendments

    1998--Pub. L. 105-244 amended section catchline and text generally. 
Prior to amendment, section authorized establishment of a District of 
Columbia student loan insurance program.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.
