20 USC 1155 - Connie Lee privatization

View all text of Subchapter VIII [§ 1151 - § 1155]

§ 1155. Connie Lee privatization

(a) Status of Corporation and corporate powers; obligations not federally guaranteed

(1) Status of the Corporation

(2) Corporate powers

(3) Limitation on ownership of stock

(A) Student Loan Marketing Association

(B) Prohibition

(4) No Federal guarantee

(A) Obligations insured by the Corporation

(i) Full faith and credit of the United States

(ii) Student Loan Marketing Association

(iii) Special rule

(B) Securities offered by the Corporation

(5) “Corporation” defined

(b) Related privatization requirements

(1) Notice requirements

(A) In general

During the six-year period following September 30, 1996, the Corporation shall include, in each of the Corporation’s contracts for the insurance, guarantee, or reinsurance of obligations, and in each document offering debt or equity securities of the Corporation, a prominent statement providing notice that—

(i) such obligations or such securities, as the case may be, are not obligations of the United States, nor are such obligations or such securities, as the case may be, guaranteed in any way by the full faith and credit of the United States; and

(ii) the Corporation is not an instrumentality of the United States.

(B) Additional notice

(2) Corporate charter

(3) Corporate name

(4) Articles of incorporation

(5) Requirements until stock sale

(1) Purchase by the Corporation

(2) Reimbursement of costs and expenses of sale

(3) Deposit into account

(4) Assistance by the Corporation

(5) Report to Congress

(d) Omitted

(e) Establishment of account

(1) In general

Notwithstanding any other provision of law, the District of Columbia Financial Responsibility and Management Assistance Authority shall establish an account to receive—

(A) amounts collected from the sale and proceeds resulting from the exercise of stock warrants pursuant to section 1087–3(c)(9) of this title;

(B) amounts and proceeds remitted as compensation for the right to assign the “Sallie Mae” name as a trademark or service mark pursuant to section 1087–3(e)(3) of this title; and

(C) amounts and proceeds collected from the sale of the stock of the Corporation and deposited pursuant to subsection (c)(3).

(2) Amounts and proceeds

(A) Amounts and proceeds relating to Sallie Mae

(B) Amounts and proceeds relating to Connie Lee

(3) Credit enhancement revolving fund for public charter schools

(A) Distribution of amounts

Of the amounts in the credit enhancement revolving fund established under paragraph (2)(B)—

(i) 50 percent shall be used to make grants under subparagraph (B); and

(ii) 50 percent shall be used to make grants under subparagraph (C).

(B) Grants to eligible nonprofit corporations

(i) In general

(ii) Administration

(i) In general

(ii) Participation of schools

(iii) Administration through committee

(iv) Cap on administrative costs

(D) Special rule regarding eligibility of nonprofit corporations

(E) Purposes of grants

(i) In general

The recipient of a grant under this paragraph shall use the funds provided under the grant to carry out activities to assist public charter schools in the District of Columbia in—

(I) obtaining financing to acquire interests in real property (including by purchase, lease, or donation), including financing to cover planning, development, and other incidental costs;(II) obtaining financing for construction of facilities or the renovation, repair, or alteration of existing property or facilities (including the purchase or replacement of fixtures and equipment), including financing to cover planning, development, and other incidental costs;(III) enhancing the availability of loans (including mortgages) and bonds; and(IV) obtaining lease guarantees (in accordance with regulations promulgated by the Office of Public Charter School Financing).

(ii) No direct funding for schools

(F) Role of Office of Public Charter School Financing and Support

(Pub. L. 104–208, div. A, title I, § 101(e) [title VI, § 603], Sept. 30, 1996, 110 Stat. 3009–233, 3009–290; Pub. L. 106–113, div. A, title I, § 153, Nov. 29, 1999, 113 Stat. 1526; Pub. L. 106–522, § 161, Nov. 22, 2000, 114 Stat. 2483; Pub. L. 106–553, § 1(a)(1) [§ 161], Dec. 21, 2000, 114 Stat. 2762, 2762A–45; Pub. L. 106–554, § 1(a)(4) [div. A, § 406(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–189; Pub. L. 107–96, Dec. 21, 2001, 115 Stat. 936; Pub. L. 108–7, div. C, title III, § 143(c), Feb. 20, 2003, 117 Stat. 131; Pub. L. 108–199, div. C, title IV, § 434, Jan. 23, 2004, 118 Stat. 141; Pub. L. 108–335, title III, § 340(a), Oct. 18, 2004, 118 Stat. 1348; Pub. L. 108–447, div. J, title I, § 103(a)(2), Dec. 8, 2004, 118 Stat. 3341.)