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Title 20 — Education

Part B · Chapter 28 — Higher Education Resources and Student Assistance

§ 1086. Delegation of functions

Statutory text

(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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Higher Education Act of 1965

    Pub. L. 89–329 title IV § 436 · 79 Stat. 1219

    Enacted · 20 U.S.C. § 1086

    Pub. L. 89–329, title IV, § 436, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1413

    Source evidence

    Code source credit
    Pub. L. 89–329, title IV, § 436, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1413

  2. Higher Education Amendments of 1998

    Pub. L. 105–244 title IV § 430 · 112 Stat. 1581

    Amended · 20 U.S.C. § 1086

    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

    Source evidence

    Code amendment note
    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.

    Enacted provision · exact public law section
    SEC. 430. DELEGATION OF FUNCTIONS. Section 436 (20 U.S.C. 1086) is amended to read as follows: “SEC. 436. 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 title, or otherwise delegates the performance of such functions to such other entity— “(1) shall not be relieved of the lenders or agency’s duty to comply with the requirements of this title; 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 part B 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.”.

    Effective date note
    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.

1 of 2 references resolved to an enrolled provision · 1 partial

Editorial Notes

Prior Provisions

A prior section 1086, Pub. L. 89–329, title IV, § 436, as added Pub. L. 89–752, § 12, , 80 Stat. 1244; amended Pub. L. 90–575, title I, § 116(b)(5), , 82 Stat. 1024; Pub. L. 94–482, title I, § 127(a), , 90 Stat. 2132; Pub. L. 96–374, title XIII, § 1391(a)(1), , 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 Amendment

Amendment by Pub. L. 105–244 effective , 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.

Credits

1986–1998 · 2 acts
  1. 1986Pub. L. 89–329, title IV, § 436, as added Pub. L. 99–498, title IV, § 402(a), , 100 Stat. 1413
  2. 1998amended Pub. L. 105–244, title IV, § 430, , 112 Stat. 1709.
Show as published

(Pub. L. 89–329, title IV, § 436, as added Pub. L. 99–498, title IV, § 402(a), , 100 Stat. 1413; amended Pub. L. 105–244, title IV, § 430, , 112 Stat. 1709.)

Parsed from the official OLRC USLM XML in data/usc_all/usc20.xml · release point 119-108 · OLRC build 2026-04-17

USLM identifier /us/usc/t20/s1086