((a)) ** General authority** The Secretary may make grants to encourage cooperative arrangements—

((1)) with funds available to carry out part A, between institutions eligible for assistance under part A and between such institutions and institutions not receiving assistance under this subchapter; or

((2)) with funds available to carry out part B, between institutions eligible for assistance under part B and institutions not receiving assistance under this subchapter;

((b)) ** Priority** The Secretary shall give priority to grants for the purposes described under subsection (a) whenever the Secretary determines that the cooperative arrangement is geographically and economically sound or will benefit the applicant institution.

((c)) ** Duration** Grants to institutions having a cooperative arrangement may be made under this section for a period as determined under or .section 1059 of this titlesection 1062 of this title