PRIA, Government Policy, Made Personal

Summary

If a lender or guaranty agency hires someone else to do its work, the lender or agency must still follow the rules in this part and must watch the hired party to make sure it follows those rules. If a lender holds a loan as a trustee, the lender must meet all the same legal and regulatory duties that any other loan holder must follow.

Title 20, §1086

Education, Source: USLM XML via OLRC

(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, 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

(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.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1086, Pub. L. 89–329, title IV, § 436, as added Pub. L. 89–752, § 12, Nov. 3, 1966, 80 Stat. 1244; amended Pub. L. 90–575, title I, § 116(b)(5), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 94–482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2132; Pub. L. 96–374, title XIII, § 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.

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 AmendmentAmendment 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.

§1086 Delegation of Functions