[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR682.420]

[Page 780]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents
 
Subpart D--Administration of the Federal Family Education Loan Programs 
                          by a Guaranty Agency
 
Sec. 682.420  Federal nonliquid assets.

    (a) General. The Federal portion of a nonliquid asset developed or 
purchased in whole or in part with Federal reserve funds, regardless of 
who held or controlled the Federal reserve funds or assets, is the 
property of the United States. The ownership of that asset must be 
prorated based on the percentage of the asset developed or purchased 
with Federal reserve funds. In maintaining and using the Federal portion 
of a nonliquid asset under this section, the guaranty agency must 
exercise the level of care required of a fiduciary charged with 
protecting, investing, and administering the property of others.
    (b) Treatment of revenue derived from a nonliquid Federal asset. If 
a guaranty agency derives revenue from the Federal portion of a 
nonliquid asset, including its sale or lease, the agency must promptly 
deposit the percentage of the net revenue received into the Federal Fund 
equal to the percentage of the asset owned by the United States.
    (c) Guaranty agency use of the Federal portion of a nonliquid asset. 
(1)(i) If a guaranty agency uses the Federal portion of a nonliquid 
asset in the performance of its guaranty activities (other than an 
intangible or intellectual property asset or a tangible asset of nominal 
value), the agency must promptly deposit into the Federal Fund an amount 
representing the net fair value of the use of the asset.
    (ii) If a guaranty agency uses the Federal portion of a nonliquid 
asset for purposes other than the performance of its guaranty 
activities, the agency must promptly deposit into the Federal Fund an 
amount representing the net fair value of the use of the asset.
    (2) Payments to the Federal Fund required by paragraph (c)(1) of 
this section must be made not less frequently than quarterly.

(Authority: 20 U.S.C. 1072-1)

[64 FR 58634, Oct. 29, 1999]