FEDERAL INSURANCE FOR BONDS.

SEC. 360C. FEDERAL INSURANCE FOR BONDS. Subsection (b) of section 723 of the Higher Education Act of 1965 (20 U.S.C. 1132c–2(b)) is amended— (1) in paragraph (8)— (A) in subparagraph (A), by inserting “, with each eligible institution required to maintain in the escrow account an amount equal to 10 percent of the outstanding principal of all loans made to such institution under this part” before the semicolon; and (B) by amending clause (ii) of subparagraph (B) to read as follows: “(ii) shall be used to return to an eligible institution an amount equal to any remaining portion of such institution’s 10 percent deposit of loan proceeds following scheduled repayment of such institution’s loan;”; and (2) in paragraph (11), by striking “regulations” and inserting “conditions”.