California Education Code 94159 – (a) The authority shall establish a loss reserve account for …
(a) The authority shall establish a loss reserve account for each financial institution with which the authority enters into a contract.
(b) The loss reserve account for a financial institution shall consist of moneys deposited by the authority and, as applicable, deposited by the qualified borrowers, the financial institution, or any other source.
Terms Used In California Education Code 94159
- Authority: means the California Educational Facilities Authority created by this chapter or any board, body, commission, department, or officer succeeding to the principal functions of the authority or to whom the power conferred upon the authority by this chapter is given by law. See California Education Code 94110
- Contract: A legal written agreement that becomes binding when signed.
- Financial institution: means a bank as defined under paragraph (4) of subdivision (b) of §. See California Education Code 94157
- Loss reserve account: means an account in the State Treasury or in any financial institution that is established and maintained by the authority for the benefit of a financial institution participating in the program for the purposes of any of the following:
California Education Code 94157
- Program: means the California Student Loan Refinancing Program created pursuant to this article. See California Education Code 94157
- Qualified borrower: means an individual meeting all of the following requirements:
California Education Code 94157
(c) Notwithstanding any other law, the authority may establish and maintain loss reserve accounts, as provided in subdivision (c) of Section 94157, with any financial institution under any policies the authority may adopt.
(d) All moneys in a loss reserve account established pursuant to this article are the exclusive property of, and solely controlled by, the authority. Interest or income earned on moneys credited to the loss reserve account shall be deemed to be part of the loss reserve account. The authority may withdraw from the loss reserve account all, or a portion of, the interest or other income that has been credited to the loss reserve account. Any withdrawal made pursuant to this subdivision shall be used for the sole purpose of offsetting costs associated with carrying out the program, including administrative costs and loss reserve account contributions.
(e) The combined amount to be deposited by the financial institution into any individual loss reserve account over a three-year period, in connection with any single qualified borrower, shall be not more than seventy-five thousand dollars ($75,000).
(Added by Stats. 2014, Ch. 816, Sec. 2. (AB 2377) Effective January 1, 2015.)