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2026-07-06 10:51:44 -04:00

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LegalText 20 U.S.C. § 1086 Delegation of functions us united_states_code code_section 20 EDUCATION 28 HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE 1086 20 U.S.C. § 1086 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc20@119-100.zip /us/usc/t20/s1086 data/legal/raw/us/code/title-20/usc20.xml a509e0bf42445a24525d71b21df0af518aff948cba2d20a592fbcb091361c0e5 6022872c5d6a3398d1728f82f8cefcb58db9f5ff548e2a636450be1e4a8bb052 0e81a258f27b95750c9aedfb9ef9f40ea20372966d36fe80ce4cebcdaf5988db 2026-07-04 official
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20 U.S.C. § 1086 - Delegation of functions

Text

(a) In general An eligible lender or guaranty agency that contracts with another entity to perform any of the lenders or agencys functions under this subchapter, or otherwise delegates the performance of such functions to such other entity—

(1) shall not be relieved of the lenders or agencys 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 lenders 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.

(Pub. L. 89329, title IV, § 436, as added Pub. L. 99498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1413; amended Pub. L. 105244, title IV, § 430, Oct. 7, 1998, 112 Stat. 1709.)

Notes

Editorial Notes

Prior ProvisionsA prior section 1086, Pub. L. 89329, title IV, § 436, as added Pub. L. 89752, § 12, Nov. 3, 1966, 80 Stat. 1244; amended Pub. L. 90575, title I, § 116(b)(5), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 94482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2132; Pub. L. 96374, title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, related to a District of Columbia student loan insurance program, prior to the general revision of this part by Pub. L. 99498.

Amendments1998—Pub. L. 105244 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 AmendmentAmendment by Pub. L. 105244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105244, see section 3 of Pub. L. 105244, set out as a note under section 1001 of this title.