# 34 CFR § 674.17: Federal interest in allocated funds—transfer of Fund

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-34-674.17

## Section

- **Citation:** 34 CFR § 674.17
- **Heading:** Federal interest in allocated funds—transfer of Fund
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 34—Education > Subtitle B—Regulations of the Offices of the Department of Education > CHAPTER VI—OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION > PART 674—FEDERAL PERKINS LOAN PROGRAM > Subpart A—General Provisions

## Text

(a) If an institution responsible for a Federal Perkins Loan fund closes or no longer wants to participate in the program, the Secretary directs the institution to take the following steps to protect the outstanding loans and the Federal interest in that Fund:
(1) A capital distribution of the liquid assets of the Fund according to section 466(c) of the Act.
(2) The assignment of the outstanding loans to the United States.
(b) An institution that assigns outstanding loans under this paragraph relinquishes its interest in those loans.
(Authority: 20 U.S.C. 1087cc, 1087ff), and (1087hh)
[52 FR 45747, Dec. 1, 1987, as amended at 59 FR 61415, Nov. 30, 1994; 60 FR 61814, Dec. 1, 1995; 67 FR 67076, Nov. 1, 2002]

## Nearby sections

- [34 CFR § 674.1 § 674.1 Purpose and identification of common provisions.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.1.md)
- [34 CFR § 674.2 § 674.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.2.md)
- [34 CFR § 674.5 § 674.5 Federal Perkins Loan program cohort default rate and penalties.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.5.md)
- [34 CFR § 674.8 § 674.8 Program participation agreement.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.8.md)
- [34 CFR § 674.9 § 674.9 Student eligibility.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.9.md)
- [34 CFR § 674.10 § 674.10 Selection of students for loans.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.10.md)
- [34 CFR § 674.12 § 674.12 Loan maximums.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.12.md)
- [34 CFR § 674.13 § 674.13 Reimbursement to the Fund.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.13.md)
- [34 CFR § 674.16 § 674.16 Making and disbursing loans.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.16.md)
- [34 CFR § 674.17 § 674.17 Federal interest in allocated funds—transfer of Fund.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.17.md)
- [34 CFR § 674.18 § 674.18 Use of funds.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.18.md)
- [34 CFR § 674.19 § 674.19 Fiscal procedures and records.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.19.md)
- [34 CFR § 674.20 § 674.20 Compliance with equal credit opportunity requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.20.md)
- [34 CFR § 674.30 § 674.30 Severability.](https://www.frixlaw.com/law-library/statutes/ecfr-34-674.30.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-34-674.17. Check the current official text before relying on it. Not legal advice.