(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

Terms Used In 20 USC 1086

  • eligible lender: means &mdash. See 20 USC 1085
  • guaranty agency: means any State or nonprofit private institution or organization with which the Secretary has an agreement under section 1078(b) of this title. See 20 USC 1085
  • holder: means an eligible lender who owns a loan. See 20 USC 1085
  • Trustee: A person or institution holding and administering property in trust.

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.

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