 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
                      Part D--Federal Perkins Loans
 
Sec. 1087ff. Distribution of assets from student loan funds


(a) In general

    After September 30, 2003, and not later than March 31, 2004, there 
shall be a capital distribution of the balance of the student loan fund 
established under this part by each institution of higher education as 
follows:
        (1) The Secretary shall first be paid an amount which bears the 
    same ratio to the balance in such fund at the close of September 30, 
    2003, as the total amount of the Federal capital contributions to 
    such fund by the Secretary under this part bears to the sum of such 
    Federal contributions and the institution's capital contributions to 
    such fund.
        (2) The remainder of such balance shall be paid to the 
    institution.

(b) Distribution of late collections

    After March 31, 2012, each institution with which the Secretary has 
made an agreement under this part, shall pay to the Secretary the same 
proportionate share of amounts received by this institution after 
September 30, 2003, in payment of principal and interest on student 
loans made from the student loan fund established pursuant to such 
agreement (which amount shall be determined after deduction of any costs 
of litigation incurred in collection of the principal or interest on 
loans from the fund and not already reimbursed from the fund or from 
such payments of principal or interest), as was determined for the 
Secretary under subsection (a) of this section.

(c) Distribution of excess capital

    (1) Upon a finding by the institution or the Secretary prior to 
October 1, 2004, that the liquid assets of a student loan fund 
established pursuant to an agreement under this part exceed the amount 
required for loans or otherwise in the foreseeable future, and upon 
notice to such institution or to the Secretary, as the case may be, 
there shall be, subject to such limitations as may be included in 
regulations of the Secretary or in such agreement, a capital 
distribution from such fund. Such capital distribution shall be made as 
follows:
        (A) The Secretary shall first be paid an amount which bears the 
    same ratio to the total to be distributed as the Federal capital 
    contributions by the Secretary to the student loan fund prior to 
    such distribution bear to the sum of such Federal capital 
    contributions and the capital contributions to the fund made by the 
    institution.
        (B) The remainder of the capital distribution shall be paid to 
    the institution.

    (2) No finding that the liquid assets of a student loan fund 
established under this part exceed the amount required under paragraph 
(1) may be made prior to a date which is 2 years after the date on which 
the institution of higher education received the funds from such 
institution's allocation under section 1087bb of this title.

(Pub. L. 89-329, title IV, Sec. 466, as added Pub. L. 99-498, title IV, 
Sec. 405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102-325, 
title IV, Sec. 466, July 23, 1992, 106 Stat. 584; Pub. L. 103-208, 
Sec. 2(f)(15), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105-244, title IV, 
Sec. 466, Oct. 7, 1998, 112 Stat. 1728.)


                            Prior Provisions

    A prior section 1087ff, Pub. L. 89-329, title IV, Sec. 466, as added 
Pub. L. 92-318, title I, Sec. 137(b), June 23, 1972, 86 Stat. 278; 
amended Pub. L. 94-482, title I, Sec. 130(h), Oct. 12, 1976, 90 Stat. 
2147; Pub. L. 96-374, title IV, Sec. 442(c), title XIII, 
Sec. 1391(a)(1), Oct. 3, 1980, 94 Stat. 1440, 1503, related to 
distribution of assets from student loan funds, prior to the general 
revision of this part by Pub. L. 99-498.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-244, Sec. 466(1)(A), in introductory 
provisions, substituted ``2003'' for ``1996'' and ``2004'' for ``1997''.
    Subsec. (a)(1). Pub. L. 105-244, Sec. 466(1)(B), substituted 
``2003'' for ``1996''.
    Subsec. (b). Pub. L. 105-244, Sec. 466(2), substituted ``2012'' for 
``2005'' and ``2003'' for ``1996''.
    Subsec. (c)(1). Pub. L. 105-244, Sec. 466(3), substituted ``2004'' 
for ``1997'' in introductory provisions.
    1993--Subsec. (c)(2). Pub. L. 103-208 realigned margin.
    1992--Subsec. (b). Pub. L. 102-325, Sec. 466(1), substituted 
``2005'' for ``1997''.
    Subsec. (c). Pub. L. 102-325, Sec. 466(2), designated existing 
provisions as par. (1), redesignated former pars. (1) and (2) as 
subpars. (A) and (B), respectively, and added par. (2).


                    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.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-208 effective as if included in the Higher 
Education Amendments of 1992, Pub. L. 102-325, except as otherwise 
provided, see section 5(a) of Pub. L. 103-208, set out as a note under 
section 1051 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1087cc of this title.
