[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR674.17]



[Page 569-570]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 674_FEDERAL PERKINS LOAN PROGRAM--Table of Contents

 

                      Subpart A_General Provisions

 

Sec. 674.17  Federal interest in allocated funds--transfer of Fund.



    (a) If an institution responsible for a Federal Perkins Loan fund 

closes or no longer wants to participate in the program, the Secretary 

directs the institution to take one of the following steps to protect 

the outstanding loans and the Federal interest in that Fund:



[[Page 570]]



    (1) A capital distribution of the liquid assets of the Fund 

according to section 466(c) of the Act.

    (2) The assignment of the outstanding loans to the United States.

    (b) An institution that assigns outstanding loans under this 

paragraph relinquishes its interest in those loans.



(Authority: 20 U.S.C. 1087cc, 1087ff), and (1087hh)



[52 FR 45747, Dec. 1, 1987, as amended at 59 FR 61415, Nov. 30, 1994; 60 

FR 61814, Dec. 1, 1995; 67 FR 67076, Nov. 1, 2002]