Sec. 1066c. Limitations on Federal insurance for bonds issued
by the designated bonding authority
(a) Limit on amount
At no time shall the aggregate principal amount of outstanding bonds insured under this part together with any accrued unpaid interest
thereon exceed $375,000,000, of which-- (1) not more than $250,000,000 shall be used for loans to eligible institutions that are private historically Black colleges and universities; and (2) not more than $125,000,000 shall be used for loans to eligible institutions which are historically Black public colleges and universities.
For purposes of paragraphs (1) and (2), Lincoln University of
Pennsylvania is an historically Black public institution. No institution
of higher education that has received assistance under section 123 of
this title shall be eligible to receive assistance under this part.
(b) Limitation on credit authority
The authority of the Secretary to issue letters of credit and
insurance under this part is effective only to the extent provided in
advance by appropriations Acts.
(c) Religious activity prohibition
No loan may be made under this part for any educational program,
activity or service related to sectarian instruction or religious
worship or provided by a school or department of divinity or to an
institution in which a substantial portion of its functions is subsumed
in a religious mission.
(d) Discrimination prohibition
No loan may be made to an institution under this part if the
institution discriminates on account of race, color, religion, national
origin, sex (to the extent provided in title IX of the Education
Amendments of 1972 [20 U.S.C. 1681 et seq.]), or disabling condition;
except that the prohibition with respect to religion shall not apply to
an institution which is controlled by or which is closely identified
with the tenets of a particular religious organization if the application of this section would not be consistent with the religious tenets of such organization.