text: 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.
target: 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.
feat_title: College Construction Loan Insurance Association Privatization Act of 1995