§ 622. Prohibition of receipt of gifts by covered institutions. 1. A covered institution may not, directly or indirectly, solicit, accept or receive any gift from or on behalf of a lending institution, in exchange for any advantage or consideration provided to such lending institution related to its educational loan activities.

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Terms Used In N.Y. Education Law 622

  • Covered institution: shall mean any college, vocational institution, or approved program as defined in section six hundred one of this title. See N.Y. Education Law 620
  • Educational loan: shall mean any loan that is made, insured, or guaranteed under Part B of Title IV of the Federal Higher Education Act of nineteen hundred sixty-five, as amended, any high risk loan or any private loan issued by a lending institution for the purposes of paying for or financing higher education expenses. See N.Y. Education Law 620
  • Lending institution: shall mean :

    a. See N.Y. Education Law 620
  • Revenue sharing: shall mean any arrangement whereby a lending institution pays a covered institution or an affiliated entity or organization of such covered institution a percentage of the principal of each loan directed towards the lending institution from a borrower at the covered institution. See N.Y. Education Law 620

2. A covered institution may not engage in revenue sharing with a lending institution.