A holder of a loan guaranteed pursuant to this chapter may submit a default claim to the Corporation for payment when a borrower has failed to make an installment payment of principal or interest or both when due or to comply with other terms of the note or other written evidence of agreement, which persists beyond the delinquency period provided in the Higher Education Act. Upon the holder's compliance with the servicing and the default claim filing requirements specified in section 2863 of this chapter, the Corporation shall pay the holder the amount due as described in section 2863 of this title. Upon reimbursement, the holder shall assign the note to the Corporation, but such assignment may be without representation or warranty, expressed or implied, and without recourse. (Added 1965, No. 198, § 7(e); amended 1969, No. 83, § 3, eff. April 18, 1969; 1975, No. 170 (Adj. Sess.), § 5; 1993, No. 147 (Adj. Sess.), § 6; 2003, No. 86 (Adj. Sess.), § 27.)