OFFSET FEE.

SEC. 4104. OFFSET FEE. Subsection (h) of section 439 of the Act (20 U.S.C. 1087–2(h)) is amended by adding at the end the following new paragraph: “(7) Offset fee.— (A) The Association shall pay to the Secretary, on a monthly basis, an offset fee calculated on an annual basis in an amount equal to 0.30 percent of the principal amount of each loan made, insured or guaranteed under this part that the Association holds (except for loans made pursuant to sections 428C, 439(o), or 439(a)) and that was acquired on or after the date of enactment of this paragraph. 107 STAT. 368 “(B) If the Secretary determines that the Association has substantially failed to comply with subsection (q), subparagraph (A) shall be applied by substituting ‘1.0 percent’ for ‘0.3 percent’. “(C) The Secretary shall deposit all fees collected pursuant to this paragraph into the insurance fund established in section 431.”.