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EXHIBIT 4.7
FLORIDA DEPARTMENT OF EDUCATION
OFFICE OF STUDENT FINANCIAL ASSISTANCE
FLORIDA GUARANTEED LOAN PROGRAMS
LENDING INSTITUTION PARTICIPATION AGREEMENT
This Agreement is entered into for the purpose of participation in the
Florida Guaranteed Loan Programs.
WHEREAS, The First National Bank of Chicago as Trustee for the PNC Student Loan
Trusts hereinafter referred to as the "Lender," wishes to be able to secure loan
insurance on loans made to or on behalf of students pursuing programs of
postsecondary education pursuant to Title IV, Part B, of the Higher Education
Act of 1965, as amended, hereinafter referred to as the "Act," and
WHEREAS, the Florida Department of Education, hereinafter referred to as the
"Department," has qualified for reinsurance of such loans and having found that
the Lender qualifies as an eligible lender under the provisions of the Act, the
applicable parts of Title 34 of the Code of Federal Regulations (hereinafter
referred to as "Federal Regulations"), Florida Statutes and the Rules of the
State Board of Education (hereinafter referred to as "SBE Rules"), wishes to
encourage the holding of such loans by the Lender,
NOW, THEREFORE, it is agreed that:
1. Within such limits as may be set by the Act, Federal Regulations, Florida
Statutes and SBE Rules, the Department shall fully guarantee all loans held
by the Lender which are reinsurable under the Act and Federal Regulations.
The Act, the applicable Federal Regulations, the applicable Florida Statutes
and SBE Rules are a part of this Agreement.
2. In making or servicing guaranteed loans to or on behalf of eligible
borrowers, the Lender will assist them in securing such reductions in their
obligations to pay interest on loans made by the Lender as they may be
eligible to receive under the Act and Federal Regulations.
3. Due diligence in making, servicing, and collecting Florida guaranteed loans
will be provided by the Lender as specified by Federal Regulations and SBE
Rules.
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4. The Lender will maintain transaction records and reports in such form and
containing such information as the Department requires, and will afford
access thereto as the Department or its authorized representatives may find
necessary to assure correctness and to verify such records and reports.
5. The Department will supply the Lender with all forms and informational
materials as are necessary to perform the requirements set forth by this
Agreement. Any addition, substitution, or alteration of forms provided by
the Department must be approved, in advance of their use, by the Department.
6. The Lender will provide notification to the Department when it acquires a
loan for which the Department has issued a notice of loan guarantee.
Regarding a guaranteed loan already held by the Lender, in order for a loan
account to remain subject to the Department's guarantee obligation, the loan
may be transferred only to another approved lender or eligible holder of
Florida Guaranteed loans.
7. Payment of a note may be extended in whole or in part, and the provisions
of the note may be modified without notice to and without affecting the
liability of the Department, if such extension or modification complies
with the requirements for notes under this Agreement, Federal Regulations
and SBE Rules.
8. The Lender will notify the Department of any servicing or management of the
Lender's guaranteed loan portfolio performed by an agent(s) other than the
holder of record.
9. Whenever any guaranteed note shall be in default, or upon the death or total
and permanent disability of a borrower, or upon adjudication in bankruptcy,
the Department will, upon receipt of a properly documented claim from the
Lender, purchase the total amount of principal and interest then due and
owing to the Lender, in accordance with Federal Regulations and SBE Rules.
10. The Department shall maintain on deposit with the State Treasurer of Florida
or State Board of Administration funds or negotiable securities representing
no less than two percent (2%) of the total unpaid principal amount of all
guarantees issued by the Department or the guaranteed portion of unpaid
principal of all notes previously guaranteed by the Department exclusive of
such portion as
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may have been reinsured or guaranteed by the United States of America or an
agency, department, or instrumentality thereof. A Statement of such funds
and securities as of the close of the latest state fiscal year shall be
furnished to the Lender upon request.
11. The Lender represents that the Lender is not currently the object of any
directive issued by the U.S. Department of Education or any state or
federal agency which has the potential to limit, suspend or terminate the
Lender's eligibility to participate in the guaranteed loan programs.
Further, the Lender will notify the Department on the same day it receives
any such directives while this Agreement is in effect.
12. The Lender will not enter into any formal or informal agreement with any
school regarding the availability of Florida guaranteed loans, and will not
provide to or accept financial inducements from any school for making
Florida guaranteed loans available to students attending a school.
13. The Lender shall not discriminate nor deny equal opportunity on the basis
of race, religion, sex, creed, national origin, marital status, or veteran
status in any decision material to participation in the Florida Guaranteed
Loan Programs, such as but not limited to, loan eligibility determinations,
or approval of deferments, forbearances, repurchases and loan consolidation
or refinancing.
14. As a condition to the obligation of the Department herein, the Lender
agrees to comply with all laws, rules, and regulations, currently in effect
and as may be amended during the term of this Agreement, that are
applicable to the transactions and loans which are to be guaranteed.
15. This Agreement shall apply only to loans made after the date of execution
by the Department and may be terminated by the Lender by providing written
notice to the Department thirty (30) days in advance of the termination
date. If the Department intends to terminate this Agreement, the Department
will establish the termination date in accordance with the provisions set
forth in Federal Regulations and SBE Rules. The termination of this
agreement shall not affect the coverage of loans guaranteed prior to such
termination.
16. The Lender shall provide to the Department a Secretary's or Cashier's
Certificate and a Certificate of Incumbency and Authenticity of Signatures,
in the formats set out in Attachments 1 and 2, which are incorporated in
and made a part of this Agreement by reference, or in a substantially
equivalent format.
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IN WITNESS WHEREOF, the parties have caused this instrument (which
constitutes the entire Agreement of the parties and which shall not be amended
except in writing or as stated herein) to be executed by their duly
authorized officers.
FOR THE LENDER
As an officer of this lending institution, I agree that this institution and
its representatives will comply with all laws, program regulations and rules
under this Agreement.
/s/ XXXXXXX X. XXXXXX
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Signature of Official Date
XXXXXXX X. XXXXXX, Asst. Vice President
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Typed name of Official
FOR THE DEPARTMENT
/s/ 3/27/97
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Administrator, Federal Programs Date
Office of Student Financial Assistance
Florida Department of Education
