California Education Code 94160 – (a) If a financial institution seeks to enroll a qualified loan …
(a) If a financial institution seeks to enroll a qualified loan in the program in order to obtain the protection against loss provided by its loss reserve account, after disclosing relevant qualified loan financial information to the qualified borrower, it shall notify the authority in writing on a form prescribed by the authority, within 15 calendar days after the date on which the qualified loan is made, of all of the following:
(1) The disbursement of the qualified loan.
Terms Used In California Education Code 94160
- 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
- Executive director: means the Executive Director of the California Educational Facilities Authority. See California Education Code 94157
- Financial institution: means a bank as defined under paragraph (4) of subdivision (b) of §. See California Education Code 94157
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- 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
- Qualified loan: means a loan or a portion of a loan made by a financial institution to a qualified borrower to refinance a private student loan under the program. See California Education Code 94157
(2) The dollar amount of the qualified loan enrolled.
(3) The interest rate applicable to, and the term of, the qualified loan.
(4) The amount of any administrative fee related to the processing of an existing loan or the issuance of a new loan.
(b) The executive director may authorize an additional five days for a financial institution to submit the written notification described in subdivision (a) to the authority on a loan-by-loan basis for a reason limited to conditions beyond the reasonable control of the financial institution.
(c) When making a qualified loan that will be enrolled under the program, the financial institution shall require the qualified borrower to whom the qualified loan is made to pay an administration fee as determined by the authority. The financial institution shall also pay an administration fee in an amount equal to the fee paid by the qualified borrower. The financial institution shall deliver the fees collected under this subdivision to the authority for deposit in the loss reserve account for the financial institution.
(Added by Stats. 2014, Ch. 816, Sec. 2. (AB 2377) Effective January 1, 2015.)