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shall establish and maintain such general ledger control accounts and related subsidiary accounts as are prescribed by the Commissioner. Such records shall:
(a) meet at least the minimum standards prescribed by the Commissioner as set forth in the most recent official National Defense Student Loan Program Manual of Policies and Procedures and other official guidelines that may be issued from time to time,
(b) be maintained in such a manner as to separately identify all Fund transactions from all other institutional funds and activities,
(c) reflect the separate deposit into the Fund of Federal capital contributions and institutional capital contributions,
(d) in instances where the institution exercises the option to assess charges for late payments of installments due or for late filing of required certificates of cancellation and/or deferment in accordance with section 144.8 (h), reflect the payment of such charges thru separate journal entries or in a separate ledger account,
(e) reflect each transaction so as to afford ready identification of each borrower's account and status thereof, and
(f) contain full and proper documentation to support each cancellation entry for reason of death, permanent and total disability, or teaching service.
If a fiscal agent is utilized by the institution, its function must be limited solely to the performance of ministerial acts. The responsibilities of the institution to make determinations relative to the making and collection of loans cannot be delegated.
(2) Institutions shall submit such reports and information as the Commissioner may reasonably require in connection with the administration of the Act and shall comply with such provisions as he may find necessary to insure the correctness and verification of such reports. Annual reports of Fund status and transactions shall be forwarded to the Commissioner by each institution within thirty days of the close of each fiscal year.
(3) Institutions shall retain pertinent records of Fund activities, including oath subscribed to pursuant to section 144.9, until such time as agreed upon with the Commissioner that there is no further need for retention.
(e) Internal Controls.
The Fund shall be administered in each institution in such a manner as to provide for an adequate system of internal controls. Wherever practical, approval of loans, collection of loans, disbursement of loan funds, and recordkeeping shall be divided so as to prevent the handling of all aspects of the loan program by a single individual. Promissory notes arising out of student loan transactions must be adequately safeguarded and maintained in good order in a secure location which is preferably fireproof and can be locked when not in use. Only authorized personnel shall have access to these notes. Sec. 144.12 Compliance by Institutions
If, at any time, after notice and opportunity for hearing, the Commissioner determines (a) that the requirements for an institution's
participation in the student loan program are no longer met, or (b) that any monies in the Fund or to be deposited therein have been expended for purposes for which the Fund is legally unavailable and such diversions have not been restored, or (c) it is determined by the Commissioner that the institution has not exercised due diligence in the administration and management of the Fund, no further Federal capital contributions shall be made to such Fund and no further expenditures shall be permitted to be made from such Fund until there is no longer any failure of such compliance.
Sec. 144.13 Preceding Provisions Not Exhaustive of Jurisdiction of the Commissioner
No provision of this part now or hereafter promulgated shall be deemed exhaustive of the jurisdiction of the Commissioner under the Act. The provisions of this part may be modified or further regulations may be issued hereafter as circumstances may warrant.
THE NATIONAL TEACHER CORPS
(Bureau of Elementary and Secondary Education)
THE PROSPECTIVE TEACHER GRADUATE FELLOWSHIP PROGRAM
THE INSTITUTIONAL ASSISTANCE GRANT PROGRAM
(Division of Graduate Programs, Bureau of Higher Education)
THE EXPERIENCED TEACHER FELLOWSHIP PROGRAM (Division of Educational Personnel Training Programs, Bureau of Elementary and Secondary Education)