Section R. 390.1402 - Definitions; DRule 2. As used in these rules:
(a) "Defaulted loans" means the failure of a borrower to make an installment payment when due or to comply with other terms of the note or other written agreement evidencing a loan in accordance with the conditions and requirements of the act and the secretary specified in the provisions of 34 C.F.R. SS682.200 and 682.412. These provisions are adopted by reference in R 390.1491.(b) "Disbursement of a loan" means the transfer by a lender of loan proceeds to a borrower. Disbursement shall be made by a check which is payable to the borrower or to the borrower and the school that requires endorsement or by electronic transfer to an account of the school on behalf of a borrower where the account requires the written approval of the borrower for the release of funds from the account.(c) "Due diligence" means the secretary's requirements, specified in the provisions of 34 C.F.R. SS682.206 to 682.208, for a lender in making, disbursing, servicing, and collecting educational loans. These provisions are adopted by reference in R 390.1491.Mich. Admin. Code R. 390.1402
1979 AC; 1984 AACS; 1990 AACS