§ 1087c.
(c)
Selection criteria for origination
(1)
In general
The Secretary may enter into a supplemental agreement with an institution (or a consortium of such institutions) that—
(A)
has an agreement under subsection
1
So in original. Probably should be “section”.
1087d(a) of this title;
(B)
desires to originate loans under this part; and
(C)
meets the criteria described in paragraph (2).
(2)
Selection criteria
The Secretary may approve an institution to originate loans only if such institution—
(A)
is not on the reimbursement system of payment for any of the programs under subpart
1 or
3 of part A, part C, or part E of this subchapter;
(B)
is not overdue on program or financial reports or audits required under this subchapter;
(C)
is not subject to an emergency action, or a limitation, suspension, or termination under section 1078(b)(1)(T), 1082(h), or 1094(c) of this title;
(D)
in the opinion of the Secretary, has not had severe performance deficiencies for any of the programs under this subchapter, including such deficiencies demonstrated by audits or program reviews submitted or conducted during the 5 calendar years immediately preceding the date of application;
(E)
provides an assurance that such institution has no delinquent outstanding debts to the Federal Government, unless such debts are being repaid under or in accordance with a repayment arrangement satisfactory to the Federal Government, or the Secretary in the Secretary’s discretion determines that the existence or amount of such debts has not been finally determined by the cognizant Federal agency; and
(F)
meets such other criteria as the Secretary may establish to protect the financial interest of the United States and to promote the purposes of this part.
([Pub. L. 89–329, title IV, § 453], as added [Pub. L. 99–498, title IV, § 404], Oct. 17, 1986, [100 Stat. 1438]; amended [Pub. L. 102–325, title IV, § 451], July 23, 1992, [106 Stat. 569]; [Pub. L. 103–66, title IV, § 4021], Aug. 10, 1993, [107 Stat. 342]; [Pub. L. 103–208, § 2(e)], Dec. 20, 1993, [107 Stat. 2470]; [Pub. L. 105–244, title IV, § 451], Oct. 7, 1998, [112 Stat. 1715]; [Pub. L. 111–39, title IV, § 404(b)(1)], July 1, 2009, [123 Stat. 1946].)