N.Y. Comp. Codes R. & Regs. tit. 8 § 2213.4

Current through Register Vol. 46, No. 53, December 31, 2024

Section 2213.4 - Lender eligibility requirements

(a) To be eligible to participate in the program, a lender or its assignee shall:

(1) be one of the financial institutions, as defined in the Federal Deposit Insurance Act ( 12 U.S.C. section 1813 ), that solicits, makes, or extends private and/or Federal educational loans; a Federal credit union, as defined in the Federal Credit Union Act ( 12 U.S.C. section 1752 ), that solicits, makes, or extends private education financing; and/or any other regulated entity, approved by the corporation;

(2) enter into a participation agreement with the corporation and with the agency, in connection with any loans intended to be sold by the lender to the agency, to make program loans in accordance with the rules and regulations governing the program;

(3) not to be subject to a limitation, suspension, or termination proceeding initiated by the U.S. Secretary of Education, or other appropriate entity with oversight authority; and

(4) have advised the corporation of its proposed arrangements for servicing program loans and agreed to give the corporation notice prior to any change of such arrangements. Such arrangements shall be satisfactory to the corporation.

(b) No lender participating in the program shall discriminate against a borrower or cosigner based on the individual's race, sex, color, sexual preference, religion (creed), national origin, mental or physical disability, age, marital status, veteran status or criminal record.

(c) The corporation shall adopt criteria and procedures for the temporary or permanent disqualification of lenders or their assignees from participation in the program for just cause. Just cause warranting disqualification, under certain circumstances shall include, but not be limited to violations of the participation agreement or other program requirements. Such procedures shall be consistent with Part 2004 of this Title.

(d) Each of the corporation and any public benefit corporation described in section 2213.1(ad) of this Part may participate in the program as a lender and, in such case, all references in this Subchapter to the lender shall be deemed applicable to the corporation or such public benefit corporation, as applicable, in such capacity, except to the extent that the corporation or such public benefit corporation would be required thereby to provide information to or enter into a contractual arrangement with itself.

N.Y. Comp. Codes R. & Regs. Tit. 8 § 2213.4