[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: 34CFR682.420]



[Page 767]

 

                           TITLE 34--EDUCATION

 

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

 

PART 682_FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents

 

 Subpart D_Administration of the Federal Family Education Loan Programs 

                          by a Guaranty Agency

 

Sec. 682.420  Federal nonliquid assets.



    (a) General. The Federal portion of a nonliquid asset developed or 

purchased in whole or in part with Federal reserve funds, regardless of 

who held or controlled the Federal reserve funds or assets, is the 

property of the United States. The ownership of that asset must be 

prorated based on the percentage of the asset developed or purchased 

with Federal reserve funds. In maintaining and using the Federal portion 

of a nonliquid asset under this section, the guaranty agency must 

exercise the level of care required of a fiduciary charged with 

protecting, investing, and administering the property of others.

    (b) Treatment of revenue derived from a nonliquid Federal asset. If 

a guaranty agency derives revenue from the Federal portion of a 

nonliquid asset, including its sale or lease, the agency must promptly 

deposit the percentage of the net revenue received into the Federal Fund 

equal to the percentage of the asset owned by the United States.

    (c) Guaranty agency use of the Federal portion of a nonliquid asset. 

(1)(i) If a guaranty agency uses the Federal portion of a nonliquid 

asset in the performance of its guaranty activities (other than an 

intangible or intellectual property asset or a tangible asset of nominal 

value), the agency must promptly deposit into the Federal Fund an amount 

representing the net fair value of the use of the asset.

    (ii) If a guaranty agency uses the Federal portion of a nonliquid 

asset for purposes other than the performance of its guaranty 

activities, the agency must promptly deposit into the Federal Fund an 

amount representing the net fair value of the use of the asset.

    (2) Payments to the Federal Fund required by paragraph (c)(1) of 

this section must be made not less frequently than quarterly.



(Authority: 20 U.S.C. 1072-1)



[64 FR 58634, Oct. 29, 1999]