conditions of agreements

conditions of agreements Sec. 204. An agreement with any institution of higher education for Federal capital contributions by the Commissioner under this title shall— (1) provide for establishment of a student loan fund by such institution; (2) provide for deposit in such fund of (A) the Federal capital contributions, (B) an amount, equal to not less than one-ninth of such Federal contributions, contributed by such institution, (C) collections of principal and interest on student loans made from such fund, and (D) any other earnings of the fund; (3) provide that such student loan fund shall be used only for loans to students in accordance with such agreement, for capital distributions as provided in this title, and for costs of litigation arising in connection with the collection of any loan from the fund or interest on such loan; (4) provide that in the selection of students to receive loans from such student loan fund special consideration shall be given to (A) students with a superior academic background who express a desire to teach in elementary or secondary schools, and (B) students whose academic background indicates a superior capacity or preparation in science, mathematics, engineering, or a modern foreign language; and (5) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this title and as are agreed to by the Commissioner and the institution.