(a) State colleges and universities operating under the state board of regents and the University of Tennessee operating under the board of trustees of the University of Tennessee are authorized to use funds resulting from state appropriations or student fees for the purpose of participating in college loan funds under the National Defense Education Act of 1958 (P.L. 85-864, 72 Stat. 1597), and other loan programs; provided, that the state university and community college system and the University of Tennessee are empowered to take any and all action deemed necessary to collect all loans extended to students or former students by the institutions.
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Terms Used In Tennessee Code 49-7-103

  • Contract: A legal written agreement that becomes binding when signed.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) The proper administrative official of any state or private college or university within this state, if authorized by its particular controlling board having jurisdiction over the state or private college or university, may accept the note or contract of a college student applying for a student loan or aid under the National Defense Education Act student loan program, or other bona fide, established student loan program of the state or private college or university. The note or contract shall be valid and fully enforceable in a court of law or equity, and the college student in such circumstances shall be without recourse to plead minority in any court of law or equity.
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