article: That this Act may be cited as the ``College Construction Loan Insurance Association Privatization Act of 1995''. findings and purposes Sec. 2. (a) Findings.--The Congress finds that-- (1) the College Construction Loan Insurance Association (hereinafter referred to as ``the Corporation'') was established by the Higher Education Amendments of 1986 (Public Law 99-498) in order to assist in financing the construction, reconstruction, renovation, acquisition, or purchase of postsecondary education facilities; (2) in order to attract initial investors and establish the Corporation as a viable corporate entity, the Secretary of Education was required by statute to purchase a minority equity interest in the Corporation; (3) it was the intent of Congress, in establishing the Corporation, that the Federal Government's ownership interest in the Corporation would eventually terminate through the sale of the stock of the Corporation owned by the Secretary of Education; (4) current statutory restrictions on the Corporation's business activities and organization impede the Corporation's efforts to operate effectively and to provide the services needed by educational institutions; and (5) eliminating all statutory restrictions on the Corporation's business activities, as well as other links between the Federal Government and the Corporation, would-- (A) eliminate a Federal presence where the operation of market forces would be more suitable and contribute toward reducing the scope of Government; (B) improve the ability of the Corporation to provide assistance in the financing of education facilities; and (C) return funds to the United States Treasury. (b) Purposes.--The purposes of this Act are to-- (1) terminate, in an orderly manner, the Corporation's financial and other connections to the United States Government; and (2) enable the Corporation to engage in any business or other activities for which corporations may be organized under the laws of any State of the United States or the District of Columbia. status of the corporation and corporate powers; obligations not federally guaranteed Sec. 3. (a) Status of the Corporation.--The Corporation shall not be an agency, instrumentality, or establishment of the United States Government and shall not be a ``Government corporation'' nor a ``Government controlled corporation'' as defined in section 103 of title 5, United States Code. No action under section 1491 of title 28, United States Code (commonly known as the Tucker Act) shall be allowable against the United States based on the actions of the Corporation. (b) Corporate Powers.--The Corporation shall be subject to the provisions of this Act, and, to the extent not inconsistent with this Act, to the District of Columbia Business Corporation Act (or the comparable law of another State, if applicable). The Corporation shall have the powers conferred upon a corporation by the District of Columbia Business Corporation Act (or such other applicable State law) as from time to time in effect in order to conduct its affairs as a private, for-profit corporation and to carry out its purposes and activities incidental thereto. The Corporation shall have the power to enter into contracts, to execute instruments, to incur liabilities, to provide products and services, and to do all things as are necessary or incidental to the proper management of its affairs and the efficient operation of a private, for-profit business. (c) No Federal Guarantee.-- (1) Obligations insured by the corporation.-- (A) No obligation that is insured, guaranteed, or otherwise backed by the Corporation shall be deemed to be an obligation that is guaranteed by the full faith and credit of the United States. (B) No obligation that is insured, guaranteed, or otherwise backed by the Corporation shall be deemed to be an obligation that is guaranteed by the Student Loan Marketing Association. (C) This paragraph shall not affect the determination of whether such obligation is guaranteed for purposes of Federal income taxes. (2) Securities offered by the corporation.--No debt or equity securities of the Corporation shall be deemed to be guaranteed by the full faith and credit of the United States. (d) Definition.--The term ``Corporation'' as used in this Act shall refer to the College Construction Loan Insurance Association as in existence as of the day before enactment of this Act, and to any successor corporation. related privatization requirements Sec. 4. (a) Notice Requirements.-- (1) During the six-year period following the date of enactment of this Act, the Corporation shall include, in each of the Corporation's contracts for the insurance, guarantee, or reinsurance of obligations, and in each document offering debt or equity securities of the Corporation a prominent statement providing notice that-- (A) such obligations or such securities, as the case may be, are not obligations of the United States, nor are they guaranteed in any way by the full faith and credit of the United States; and (B) the Corporation is not an instrumentality of the United States. (2) During the five-year period following the sale of stock pursuant to section 5(a), in addition to the notice requirements in paragraph (1), the Corporation shall include, in each of the contracts and documents referred to in such paragraph, a prominent statement providing notice that the United States is not an investor in the Corporation. (b) Corporate Charter.--The Corporation's charter shall be amended as necessary and without delay to conform to the requirements of this Act. (c) Corporate Name.--The name of the Corporation, or of any direct or indirect subsidiary thereof, may not contain the term ``College Construction Loan Insurance Association'', or any substantially similar variation thereof. (d) Transitional Requirements.-- (1) Requirements until stock sale.--Notwithstanding section 6, the requirements of sections 754 and 760 of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq., hereinafter referred to as ``the Act''), as in existence as of the day before enactment of this Act, shall continue to be effective until the day immediately following the date of closing of the purchase of the Secretary's stock (or the date of closing of the final purchase, in the case of multiple transactions) pursuant to section 5(a) of this Act. (2) Reports after stock sale.--The Corporation shall, not later than March 30 of the first full calendar year immediately following the sale pursuant to section 5(a), and each of the two succeeding years, submit to the Secretary of Education a report describing the Corporation's efforts to assist in the financing of education facilities projects, including projects for elementary, secondary, and postsecondary educational institution infrastructure, and detailing, on a project-by-project basis, the Corporation's business dealings with educational institutions that are rated by a nationally recognized statistical rating organization at or below the organization's third highest rating. sale of federally-owned stock Sec. 5. (a) Sale of Stock Required.--The Secretary of the Treasury shall, upon the request of the Secretary of Education, make every appropriate effort to sell, pursuant to section 324 of title 31 of the United States Code, the voting common stock of the Corporation owned by the Secretary of Education not later than one year after the date of enactment of this Act. (b) Purchase by the Corporation.--In the event that the Secretary of the Treasury is unable to sell the voting common stock, or any portion thereof, at a price acceptable to the Secretary of Education and the Secretary of the Treasury within the period specified in subsection (a), the Corporation shall purchase such stock at a price determined by the Secretary of the Treasury, in consultation with the Secretary of Education, based on the independent appraisal of one or more nationally recognized financial firms. Such firm or firms shall be selected by the Secretary of the Treasury in consultation with the Secretary of Education and the Corporation. (c) Reimbursement of Costs of Sale.--The Secretary of the Treasury shall be reimbursed from the proceeds of the sale of the stock under this section for all reasonable costs related to such sale, including all reasonable expenses relating to one or more independent appraisals under this section. (d) Assistance by the Corporation.--The Corporation shall provide such assistance as the Secretary of the Treasury and the Secretary of Education may require to facilitate the sale of the stock under this section. repeal of statutory restrictions and related provisions Sec. 6. Part D of Title VII of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is repealed.
summary: College Construction Loan Insurance Association Privatization Act of 1995 - Provides for the privatization and renaming of the College Construction Loan Insurance Association, and the cessation of Federal sponsorship. Repeals provisions for such Association under the Higher Education Act of 1965.