Exhibit 10.8
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FIFTH AMENDMENT TO WAREHOUSE LOAN AND SECURITY AGREEMENT
among
NHELP-I, INC.,
as the Borrower
and
XXXXX FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
as the successor Trustee
and
CONCORD MINUTEMEN CAPITAL COMPANY, LLC,
as the Lender
Dated as of September 1, 2000
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TABLE OF CONTENTS
PAGE
ARTICLE I
AMENDMENTS TO ORIGINAL AGREEMENT
Section 1.01. Definitions.............................................................................. 1
Section 1.02. Additional Amendments.................................................................... 3
Section 1.03. Amendment to Original Agreement.......................................................... 4
ARTICLE II
GENERAL PROVISIONS
Section 2.01. Date of Execution........................................................................ 4
Section 2.02. Laws Governing........................................................................... 4
Section 2.03. Severability............................................................................. 4
Section 2.04. Exhibits................................................................................. 5
Section 2.05. Conditions Precedent to Amendment........................................................ 5
ARTICLE III
APPLICABILITY OF ORIGINAL AGREEMENT........................................................................... 5
THIS FIFTH AMENDMENT TO WAREHOUSE LOAN AND SECURITY AGREEMENT (the
"Amendment") is made as of September 1, 2000, among: NHELP-I, INC., a
corporation duly organized under the laws of the state of Nevada (the
"Borrower"); CONCORD MINUTEMEN CAPITAL COMPANY, LLC, a Delaware limited
liability company ("Concord"); and XXXXX FARGO BANK MINNESOTA, NATIONAL
ASSOCIATION, a national banking association, as eligible lender and successor
trustee (the "Trustee").
PRELIMINARY STATEMENTS
1. The Borrower, Concord and the Trustee have previously entered
into that certain Warehouse Loan and Security Agreement dated as of September
30, 1998, as supplemented and amended by the First Amendment to Warehouse Loan
and Security Agreement dated as of December 15, 1998, the Second Amendment to
Warehouse Loan and Security Agreement dated as of September 29, 1999, the Third
Amendment to Warehouse Loan and Security Agreement dated as of November 16,
1999, the Fourth Amendment to Warehouse Loan and Security Agreement dated as of
February 1, 2000 (collectively, the "Original Agreement").
2. Pursuant to Section 9.01 of the Original Agreement, the
Borrower and the Trustee may amend the Original Agreement with the prior written
consent of the Agent, the Required Lenders and the Liquidity Providers, if any.
As of this date, Concord and the Agent are the Required Lenders, no Liquidity
Providers other than the Agent exist and the Agent has given its written consent
to the execution of this Amendment.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, the parties hereto agree as follows:
ARTICLE I
AMENDMENTS TO ORIGINAL AGREEMENT
ADDITIONS ARE INDICATED BY UNDERLINING AND DELETIONS ARE INDICATED BY
BRACKETS THROUGHOUT THIS AMENDMENT.
All words and phrases defined in Article I of the Original Agreement
shall have the same meaning in this Amendment, except as otherwise appears in
this Article.
SECTION 1.01. DEFINITIONS. The definitions set forth below are
amended to provide as follows:
"Eligible Loan" means a Student Loan:
(a) which was originated or acquired by the
Borrower (either directly or through a Participation Agreement
in the form attached hereto as Exhibit H) in the ordinary
course of its business and was originated in the United
States, its territories or possessions;
(b) that constitutes an account or general
intangible as defined in the UCC as in effect in the
jurisdiction that governs the perfection of the interests of
the Borrower therein and the perfection of the Trustee's
interest therein under this Agreement;
(c) the borrower is an Eligible Borrower
attending an Eligible Institution;
(d) if such Student Loan is a subsidized
Xxxxxxxx Loan, such Student Loan qualifies the holder thereof
to receive Interest Subsidy Payments and Special Allowance
Payments from the Department; if such Student Loan is a
Consolidation Loan, such Student Loan qualifies the holder
thereof to receive Interest Subsidy Payments and Special
Allowance Payments from the Department to the extent
applicable; and if such Student Loan is a PLUS/SLS or an
unsubsidized Xxxxxxxx Loan, such Student Loan qualifies the
holder thereof to receive Special Allowance Payments from the
Department to the extent applicable;
(e) at the time of purchase with proceeds from
an Advance, is not a Defaulted Student Loan and has not been
tendered at any time to any Guarantor for payment;
(f) that provides or, when the payment schedule
with respect thereto is determined, will provide for payments
on a periodic basis that will fully amortize the Principal
Balance thereof by its maturity, as such maturity may be
modified in accordance with applicable deferral and
forbearance periods granted in accordance with applicable
laws, including the Higher Education Act and any Guarantee
Agreements, as applicable;
(g) that is denominated and payable only in
Dollars;
(h) that together with the related Student Loan
Note therefor represents the genuine, legal, valid and binding
payment obligation of the related borrower, enforceable by or
on behalf of the holder thereof against such borrower in
accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance and similar
laws relating to creditors' rights generally and subject to
general principles of equity; and that has not been
satisfied, subordinated or rescinded and no right of
rescission, setoff, counterclaim or defense has been asserted
or, to the knowledge of the Borrower, overtly threatened in
writing with respect to such Student Loan;
(i) that (i) is the subject of a valid Guarantee
Agreement with an eligible Guarantor, (ii) with respect to
which the Borrower is not in default in any material respect
in the performance of any covenants and agreements made in the
applicable Guarantee Agreement, and (iii) with respect to
which all amounts due and payable to the Department or a
Guarantor, as the case may be, have been paid in full;
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(j) that (i) is the subject of a valid Servicing
Agreement with an eligible Servicer, with respect to which the
Borrower has executed and delivered a Custodian Agreement,
(ii) with respect to which the Borrower is not in default in
any material respect in the performance of any covenants and
agreements made in the applicable Servicing Agreement, and
(iii) with respect to which all amounts due and payable to the
Servicer have been paid in full;
(k) the payment terms of which have not been
altered or amended except in accordance with the Higher
Education Act;
(l) if such Student Loan is a Proprietary Loan,
the outstanding Principal Balance of which when added to the
outstanding Principal Balance of all other Financed Loans that
are Proprietary Loans does not exceed 20% of the aggregate
outstanding Principal Balance of all Financed Loans; and
(m) if such Student Loan is serviced by a
Servicer for which the reporting of financial information
concerning such Servicer to the Agent is not permitted under
its Servicing Agreement, the outstanding Principal Balance of
which when added to the aggregate outstanding Principal
Balance of all other Financed Loans serviced by such Servicer
or other Servicers for which the reporting of financial
information to the Agent is not permitted under their
Servicing Agreements shall not exceed 10% of the aggregate
outstanding Principal Balance of all Financed Loans.
"Sale and Purchase Agreements" means either (a) a student loan purchase
agreement between the Borrower and a Seller, substantially in the form attached
hereto as Exhibit A, for the purchase of Eligible Loans or (b) a participation
agreement between the Borrower and a Seller, substantially in the form attached
hereto as Exhibit H, for the purchase of a participation interest in Eligible
Loans.
"Sellers" means any entity which sells Eligible Loans or a
participation interest in Eligible Loans to the Borrower pursuant to the terms
of a Sale and Purchase Agreement; including, but not limited to, NEBHELP, INC.,
NHELP-III, Inc., Union Bank and Trust Company, NELNET, any Affiliate of NELNET
or any other financial institution with which NELNET or any Affiliate of NELNET
has a purchase agreement.
SECTION 1.02. ADDITIONAL AMENDMENTS. Section 3.02 is amended to
provide as follows:
SECTION 3.02. CONDITIONS PRECEDENT TO ALL BORROWINGS. Each
Borrowing (including the initial Borrowing) by the Borrower from any
Lender shall be subject to the further conditions precedent that:
(a) on or prior to the date of such Borrowing,
the Borrower shall have delivered to each Agent, each Required
Lender and the Trustee (i) an Advance Percentage Calculation
Report from the Valuation Agent, [and] (ii) if requested by
the Agent or a Required Lender; copies of the relevant Sale
and Purchase Agreement (including copies of all schedules,
opinions, financing statements and other documents required to
be delivered by the applicable Seller as a condition of
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purchase thereunder, and (iii) an opinion or opinions of
counsel to the Borrower addressed to the Agent and the
Trustee, in form and substance acceptable to the Agent and the
Trustee, concerning the perfection of Borrower's security
interest in the Eligible Loans of each Seller; and
(b) on the date of such Borrowing, the following
statements shall be true, and the Borrower by accepting the
amount of such Borrowing shall be deemed to have certified
that:
(i) the representations and warranties
contained in Article IV are correct on and as of such
day as though made on and as of such date;
(ii) no event has occurred and is
continuing, or would result from such Borrowing,
which constitutes an Event of Default or an event
which, with the giving of notice or the passage of
time, or both, would constitute an Event of Default;
(iii) on and as of such day, after giving
effect to such Borrowing, the Facility Amount would
not exceed the Facility Limit; and
(iv) no law or regulation shall
prohibit, and no order, judgment or decree of any
federal, state or local court or governmental body,
agency or instrumentality shall prohibit or enjoin,
the making of such Advances by such Lender in
accordance with the provisions hereof.
SECTION 1.03. AMENDMENT TO ORIGINAL AGREEMENT. The Original
Agreement is hereby amended to add an Exhibit H to the Original Agreement as
described in Exhibit A hereto.
ARTICLE II
GENERAL PROVISIONS
SECTION 2.01. DATE OF EXECUTION. Although this Amendment for
convenience and for the purpose of reference is dated as of September 1, 2000,
the actual dates of execution by the Borrower, by Concord and by the Trustee are
as indicated by their respective acknowledgments hereto annexed.
SECTION 2.02. LAWS GOVERNING. It is the intent of the parties
hereto that this Amendment shall in all respects be governed by the laws of the
State of Illinois.
SECTION 2.03. SEVERABILITY. If any covenant, agreement, waiver, or
part thereof in this Amendment contained be forbidden by any pertinent law or
under any pertinent law be effective to render this Amendment invalid or
unenforceable or to impair the lien hereof, then each such covenant, agreement,
waiver, or part thereof shall itself be and is hereby declared to be wholly
ineffective, and this Amendment shall be construed as if the same were not
included herein.
SECTION 2.04. EXHIBITS. The terms of the Exhibit attached to this
Amendment is incorporated herein in all particulars.
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SECTION 2.05. CONDITIONS PRECEDENT TO AMENDMENT. The effectiveness
of this Amendment shall be subject to the condition precedent that (a) the Agent
and the Trustee shall have received an opinion of counsel to the Borrower, in
form and substance satisfactory to the Agent and the Trustee, concerning the
treatment of any sales hereunder pursuant to a Participation Agreement as true
sale for bankruptcy purposes and (b) Seller shall have paid the fees and
expenses of counsel to the Agent in connection with this Amendment.
ARTICLE III
APPLICABILITY OF ORIGINAL AGREEMENT
The provisions of the Original Agreement are hereby ratified, approved
and confirmed, except as otherwise expressly modified by this Amendment. The
representations, warranties and covenants contained in the Original Agreement
(except as expressly modified herein) are hereby reaffirmed with the same force
and effect as if fully set forth herein and made again as of the date hereof.
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IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
THE BORROWER:
NHELP-I, INC.
By /s/ Xxxxx X. Xxxxxx
---------------------------------------------
Xxxxx X. Xxxxxx, Vice President and Treasurer
Date
---------------------------------------------
c/o National Higher Education Loan Program
000 Xxxxx 00 Xxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxx
(000) 000-0000
Fax: (000) 000-0000
THE LENDER:
CONCORD MINUTEMEN CAPITAL
COMPANY, LLC
By /s/ Xxxxxx X. Xxxxx
---------------------------------------------
Xxxxxx X. Xxxxx, Manager
Date
---------------------------------------------
c/o The Liberty Hampshire Company, LLC
000 Xxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxx Xxxxxxxx
(000)000-0000
Fax:(000)000-0000
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THE TRUSTEE:
XXXXX FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION
By /s/ Xxxxx X. Xxxxxxxx
-----------------------------------------
Xxxxx X. Xxxxxxxx, Corporate Trust Officer
Date 10/11/00
Xxxxx Fargo Bank Minnesota, National Association
0xx & Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000-0000
Attn: Corporate Trust Services
(000) 000-0000
Fax:(000)000-0000
ACKNOWLEDGED:
THE AGENT:
MELLON BANK, N.A.
By /s/ X.X. Xxxxxx
-------------------
Vice President
Date 9/13/00
Mellon Bank, N.A.
Xxx Xxxxxx Xxxx Xxxxxx
Xxxx 000
Xxxxxxxxxx, XX 00000
Fax: (000) 000-0000
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EXHIBIT A
EXHIBIT H
PARTICIPATION AGREEMENT
This Participation Agreement is made and entered into as of
the___________day of 20____, by and between__________________,
a_____________corporation ("Lender"), and ___________________,
a__________________corporation ("Participant").
WHEREAS, Lender is or will be the owner and holder of FFELP Loans (as
defined herein), or beneficial interest therein, originated by or on behalf of
Lender or acquired by Lender; and
WHEREAS, Lender desires to sell, and Participant desires to purchase,
an undivided 100% participation interest in certain FFELP Loans on the terms and
conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and promises herein contained, the parties hereto agree as
follows:
I. DEFINITIONS
"Agreement" means this Participation Agreement and any amendment or
supplement hereto.
"Borrower" means the student or parent obligor under an Eligible Loan.
"Certificate of Insurance" means a certificate of federal loan
insurance issued with respect to an Eligible Loan by the Secretary of Education
pursuant to the provisions of the Higher Education Act.
"Commitment Amount" means the aggregate outstanding principal balance
of up to ________________________________________ of FFELP Loans, participation
interests in which are committed to be sold by Lender and purchased by the
Participant pursuant to this Agreement.
"Commitment Period" means the period of time commencing on the date
first set forth above and terminating 364 days thereafter, and renewing
thereafter for successive 364-day periods, unless either party gives written
notice of intent to terminate at least 30 days prior to the termination of the
initial Commitment Period or any renewal/extension Commitment Period. The
Commitment Period shall terminate immediately upon a default by Lender of any of
its obligations hereunder.
"Contract of Insurance" means an agreement between the Secretary of
Education and either the Trustee or Lender providing for the insurance by the
Secretary of Education of the principal of and accrued interest on a FFELP Loan
to the maximum extent permitted under the Higher Education Act.
"Eligible Loan " means a FFELP Loan in which a participation interest
is authorized to be acquired by the Participant which (i) is either Insured or
Guaranteed; (ii) if such FFELP Loan is a subsidized Xxxxxxxx loan, qualifies the
holder thereof to receive Interest Subsidy Payments and Special Allowance
Payments; if such FFELP Loan is a consolidation loan authorized under Section
428C of the Higher Education Act, qualifies the holder thereof to receive
Interest Subsidy Payments and Special Allowance Payments to the extent
applicable; and if such FFELP Loan is a PLUS loan authorized under Section 428B
of the Higher Education Act, a SLS loan authorized under Section 428A of the
Higher Education Act, or an unsubsidized Xxxxxxxx loan authorized under Section
428H of the Higher Education Act, such FFELP Loan qualifies the holder thereof
to receive Special Allowance Payments; (iii) complies with each representation
and warranty with respect thereto contained herein; and (iv) meets the other
applicable criteria set forth in the Loan Purchase Regulations and an undivided
participation interest in which is eligible for purchase under the terms of the
Financing Agreement.
"Federal Contracts" means all agreements between a Guarantee Agency and
the Secretary of Education providing for the payment by the Secretary of
Education of amounts authorized to be paid pursuant to the Higher Education Act,
including, but not limited to, reimbursement of amounts paid or payable upon
defaulted Eligible Loans and other student loans insured or guaranteed by any
Guarantee Agency and federal interest subsidy payments and Special Allowance
Payments, if applicable, to holders of qualifying student loans guaranteed by
any Guarantee Agency.
"FFELP Loans" means those specific loans in which a participation
interest is acquired by Participant from Lender pursuant to this Agreement,
inclusive of the promissory notes evidencing such loans and the related
documentation in connection with each thereof, which were originated pursuant to
the Federal Family Education Loan Program and the Higher Education Act.
"Financing Agreement" means the ______________________________
Agreement, dated as of __________________, __________, by and among the
Participant, _________________________________ and ___________________________,
which is utilized to finance Participant's purchase of participation interests
in the FFELP Loans hereunder.
"Guarantee" or "Guaranteed" means, with respect to a FFELP Loan, the
guarantee by the Guarantee Agency, in accordance with the terms and conditions
of the Guarantee Agreement, of the principal of and accrued interest on the
FFELP Loan to the maximum extent permitted under the Higher Education Act on
FFELP Loans which have been originated, held and serviced in full compliance
with the Higher Education Act, and the coverage of the FFELP Loan by the Federal
Contracts providing, among other things, for reimbursement to the Guarantee
Agency for losses incurred by it on defaulted Eligible Loans guaranteed by it to
the extent of the maximum reimbursement allowed by the Federal Contracts.
"Guarantee Agency" means a state agency or a private nonprofit
institution or organization which administers a Guarantee Program within a State
or any successors and assignees thereof administering the Guarantee Program
which has entered into a Guarantee Agreement with Lender or the Trustee on
behalf of Lender.
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"Guarantee Agreement" means the Federal Contracts, an agreement between
a Guarantee Agency and either Lender or the Trustee on behalf of Lender
providing for the Guarantee by such Guarantee Agency of the principal of and
accrued interest on Eligible Loans to Borrowers, made or acquired by Lender or
the Trustee on behalf of Lender from time to time, and any other similar
guarantee or agreement issued by a Guarantee Agency to Lender or the Trustee on
behalf of Lender pertaining to Eligible Loans.
"Guaranteed Loans" means FFELP Loans that are Guaranteed.
"Guarantee Program" means a Guarantee Agency's student loan guaranty
program pursuant to which such Guarantee Agency guarantees or insures student
loans.
"Higher Education Act" shall mean Title IV, Parts B, F and G, of the
Higher Education Act of 1965, as amended or supplemented and in effect from time
to time, or any successor enactment thereto, and all regulations promulgated
thereunder and any directives issued by the Secretary of Education.
"Insurance" or "Insured" or "Insuring" means, with respect to a FFELP
Loan, the insuring by the Secretary of Education (as evidenced by a Certificate
of Insurance or other document or certification issued under the provisions of
the Higher Education Act) under the Higher Education Act of the principal of and
accrued interest on such FFELP Loan to the maximum extent permitted under the
Higher Education Act for FFELP Loans originated, held and serviced in full
compliance with the Higher Education Act.
"Insured Loans " means FFELP Loans which are Insured.
"Interest Subsidy Payments" means interest subsidy payments received
from the Secretary of Education pursuant to Section 428 of the Higher Education
Act or similar payments authorized by federal law or regulation.
"Lender" means _____________________________________, a _______________
corporation, an "eligible lender" under criteria established by the Higher
Education Act that has received, an eligible lender designation by the Secretary
of Education with respect to Insured Loans or from a Guarantee Agency with
respect to Guarantee Loans, which is selling participation interests in FFELP
Loans to the Participant hereunder or, if Lender is not designated as an
eligible lender under the Higher Education Act, Lender holds beneficial
ownership of Eligible Loans through the Trustee, which is an eligible lender
under the Higher Education Act.
"Lender's Retained Interest" means that portion of the income earned
with respect to Eligible Loans covered by the Participation Certificate which is
equal to _________________________basis points(_______. __________%), on an
annualized basis, of the average quarterly aggregate principal balance of
Eligible Loans covered by the Participation Certificate; provided, however, that
if changes in the Higher Education Act subsequently reduce the interest rates,
Special Allowance Payments or Interest Subsidy Payments, then Lender's Retained
Interest shall be reduced on a pro tanto basis.
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"Loan Purchase Agreement" means the Loan Purchase Agreement including
all exhibits and schedules attached thereto, substantially in the form of
Schedule A hereto.
"Loan Purchase Regulations" means the rules and regulations of the
Participant, as may be adopted by the Participant from time to time with the
consent of the parties to (and the consent of any other persons required under
the terms of) the Financing Agreement, which pertain to acquisition of
participation interests hereunder, which shall incorporate all requirements
specified in any indentures or other financing arrangements to which the
Participant is subject.
"Participant" means ______________________________, a _______________
corporation, and its successors and assigns.
"Participation Certificate " means the master participation certificate
in the form attached hereto as Schedule B.
"Purchase Price" means 100% of the outstanding principal balance plus
100% of the accrued and unpaid interest thereon with respect to Eligible Loans
covered by the Participation Certificate, each as of the date of purchase.
"Secretary of Education" means the Commissioner of Education and the
Secretary of the United States Department of Education (who succeeded to the
functions of the Commissioner of Education pursuant to the Department of
Education Organization Act), or any officer, board, body, commission or agency
succeeding to the functions thereof under the Higher Education Act.
"Servicer" means_________________________________or any other servicing
agent approved as may be required in the Financing Agreement.
"Servicing Agreement" means the agreement in which the Servicer is
engaged by Participant to administer and service Eligible Loans covered in the
Participation Certificate.
"Special Allowance Payments" means special allowance payments
authorized to be made by the Secretary of Education pursuant to Section 438 of
the Higher Education Act or similar allowances authorized from time to time by
federal law or regulation.
"Trust Agreement" means the trust agreement, if any, pursuant to which
the Trustee holds legal title to the FFELP Loans.
"Trustee" means___________________________________acting in its
capacity as eligible lender trustee under the Trust Agreement, and not in its
individual capacity.
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II. PURCHASE OF PARTICIPATION INTEREST
Section 2.01. Purchase of Participation Interest. Subject to the
terms and conditions and in reliance upon the representations, warranties and
agreements set forth herein, during the Commitment Period, Lender agrees to sell
to Participant, and Participant agrees to purchase from Lender, in an aggregate
amount up to a maximum of the Commitment Amount, an undivided participation
interest in 100.0% of the outstanding principal balance and accrued interest
thereon of Eligible Loans and a portion of the income generated by the Eligible
Loans as provided herein. Participant shall pay to Lender or its designee the
Purchase Price for the participation interest in each Eligible Loan purchased
hereunder, by wire transfer of immediately available funds, on such dates as the
parties may mutually agree upon. The participation interest acquired by
Participant shall include the promissory note or Official Copy as defined in
Section 2.02 and related documents in connection with each participated Eligible
Loan. The participation interest purchased by Participant shall represent a
participation interest in each and every Eligible Loan specifically identified
in the Participation Certificate with respect thereto, and the parties agree
that Participant is not purchasing an interest in an undivided pool of Eligible
Loans. It is the intention of Lender, that the transfer from Lender to
Participant constitutes a true, absolute sale of the participation interest in
Eligible Loans hereunder and that the ownership of such participation interests
shall not become or be deemed to be property of Lender for any purposes under
applicable law. Except as expressly set forth in this Agreement, the sale of
participation interests in Eligible Loans shall be without recourse to Lender in
connection with Borrowers' default on such Eligible Loans. If a Borrower
defaults on an Eligible Loan, and the proceeds from the liquidation of the
Eligible Loan are insufficient to pay the interest accrued on the Eligible Loan,
interest shall be distributed on a pro rata basis between the Participant and
Lender based on the proportion of the basis points comprising Lender's Retained
Interest and the total basis points comprising the interest rate on the Eligible
Loan.
Section 2.02. Participation Certificate. On the date of the initial
sale of a participation interest with respect to a portfolio of Eligible Loans
hereunder, or thereafter as mutually agreed upon by the parties hereto, Lender
shall execute and deliver to Participant the Participation Certificate
evidencing a 100% participation and beneficial ownership interest in Eligible
Loans in that portfolio as identified in Schedule A attached to the
Participation Certificate. Lender shall attach or cause to be attached to the
executed original Participation Certificate a schedule of the participated
Eligible Loans, legal title to which shall be retained by Lender (if an eligible
lender under the Higher Education Act) or by the Trustee. As Lender sells
additional participation interests in Eligible Loans to Participant hereunder,
no less frequently than on a monthly basis, Lender shall issue (or cause to be
issued) supplemental schedules to Participant to be substituted and attached to
the Participation Certificate. The participation interest shall be deemed to
have been transferred to Participant upon payment of the purchase price
therefor, irrespective of whether such supplemental schedules are issued by
Lender. With respect to any Eligible Loan evidenced by a Master Promissory Note
in the form mandated by Section 432(m)(1)(D) of the Higher Education Act, Lender
shall make only one copy of the Master Promissory Note evidencing such Eligible
Loan, xxxx the same "Official Copy" in red ink, and deliver such official copy
or the original thereof to Servicer on behalf of Participant; Lender shall also
perform any reasonable or necessary acts to perfect Participant's ownership of
the participation interest in Eligible Loans including, without limitation,
providing notice to the Borrowers of the
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transfer of the participation interest if Participant determines such acts are
necessary to perfect such sale.
Section 2.03. Distribution of Payments Received. Upon issuance of
the Participation Certificate with respect to a particular portfolio of Eligible
Loans, Participant shall be entitled to 100% of payments and income earned with
respect to the Eligible Loans covered by the Participation Certificate, less
Lender's Retained Interest which shall be deducted therefrom and paid to Lender
on a quarterly basis. Lender shall pay for all origination fees payable to the
Secretary of Education pursuant to the Higher Education Act, servicing fees
charged by Servicer pursuant to the Servicing Agreement and any other costs
incidental to or associated with origination, Guarantee, ownership,
administration, servicing and collection with respect to each of the Eligible
Loans covered by the Participation Certificate. Lender agrees to account and
deliver to Participant, or cause to be delivered to Participant, all sums of
principal, interest, Special Allowance Payments, Interest Subsidy Payments or
other income received by Lender or Servicer on behalf of Lender on account of
Participant's participation interest in the Eligible Loans covered by the
Participation Certificate during the term of this Agreement, less Lender's
Retained Interest. Lender shall cause Servicer to furnish to Participant, on a
monthly basis, all reports issued by Servicer pursuant to the Servicing
Agreement showing the amount of the balances of each of the Eligible Loans
covered by the Participation Certificate and other information generated by
Servicer, and such other specific information on individual Eligible Loans
covered by the Participation Certificate as Participant may reasonably require
from time to time, subject to the abilities of Servicer. Participant shall have
access to inspect documents in connection with Eligible Loans covered by the
Participation Certificate at the Servicer on a day to day basis.
Section 2.04. Servicing and Control of Eligible Loans. Lender and
Participant shall cause Servicer to service and collect each of the Eligible
Loans covered by the Participation Certificate under the Servicing Agreement, in
accordance with the terms of the Higher Education Act, and any rules and any
rules adopted by the applicable Guarantee Agency or the Secretary of Education.
Servicer shall act at the direction of Participant. The promissory notes or the
Official Copies as defined in Section 2.02 and other documents evidencing or
relating to the Eligible Loans covered in the Participation Certificate shall be
retained by Servicer or its agent for safekeeping as custodian in connection
with the Servicing Agreement for the benefit of Lender and Participant. Servicer
shall segregate the Eligible Loans in a separate account for servicing purposes
for the benefit of Lender and Participant, During the term of this Agreement,
Lender shall not (and shall cause the Trustee to not) pledge, encumber, sell,
transfer or otherwise dispose of any interest in any Eligible Loan covered by a
Participation Certificate, except as may be expressly permitted herein.
Section 2.05. Conditions of Purchase. Participant's obligation to
purchase and pay for participation interests in Eligible Loans hereunder shall
be subject to each of the following conditions precedent:
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(a) All representations, warranties and statements made
by Lender contained in this Agreement shall be true on the applicable
date of purchase;
(b) Participant shall receive an opinion of Lender's
counsel dated as of the date of the Participation Certificate, in form
and substance satisfactory to Participant, to the effect that (i) this
Agreement has been duly authorized, executed and delivered by Lender
and constitutes the legal, valid, binding and enforceable obligation of
Lender, (ii) the Participation Certificate has been duly authorized,
executed and delivered by Lender, (iii) with respect to all Insured
Loans in which participation interests are being acquired, the
applicable Contract of Insurance has been duly authorized, executed and
delivered by the Seller, (iv) with respect to participation interests
in all FFELP Loans in which participation interests are being acquired,
the applicable Guarantee Agreement has been duly authorized, executed
and delivered by Participant, (v) assuming the due execution and
delivery thereof, each FFELP Loan in which a participation interest is
acquired hereunder constitutes the legal, valid and binding obligation
of the Borrower (and of each endorser, if any) thereof, enforceable in
accordance with its terms, (vi) to the knowledge of Lender's counsel,
the execution and delivery of the Agreement, the consummation of the
transactions therein contemplated and compliance with the terms,
conditions and provisions of the Agreement do not and will not conflict
with or result in a breach of any of the terms, conditions or
provisions of the charter, articles or bylaws of Lender or any
agreement or instrument to which Lender is a party or by which it is
bound or constitute a default thereunder, (vii) to the knowledge of
Lender's counsel, Lender is not a party to or bound by any agreement or
instrument or subject to any charter or other corporate restriction or
judgment, order, writ, injunction, decree, law, rule or regulation
which may materially or adversely affect the ability of Lender to
perform its obligations under the Agreement, and (viii) no consent,
approval or authorization of any government or governmental body,
including, without limitation, the Federal Savings and Loan Insurance
Corporation, Federal Deposit Insurance Corporation, the Comptroller of
the Currency, the Board of Governors of the Federal Reserve System or
any state banking regulatory agency, is required in connection with the
consummation of the transactions contemplated in the Agreement.
(c) Delivery by Lender to Participant on or before
applicable date of purchase of the Participation Certificate, original
or supplemental schedules to the Participation Certificate listing and
identifying each Eligible Loan in which a participation interest is
being transferred to Participant; UCC-1 Financing Statements evidencing
the transfer from Lender to Participant, UCC Lien Searches, and UCC
Termination Statements or Releases, if any, releasing any security
interest granted by Lender in any Eligible Loan covered by the
Participation Certificate.
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(d) Adequate funds are available to Participant from a
Financing Agreement or otherwise which will finance the purchase of
participation interests in Eligible Loans under this Agreement.
Section 2.06. Repurchase Obligation. If:
(i) any representation or warranty made or
furnished by Lender in or pursuant to this Agreement with
respect to a FFELP Loan shall prove to have been materially
incorrect;
(ii) the Secretary of Education or a Guarantee
Agency, as the case may be, refuses to honor all or part of a
claim with respect to a FFELP Loan (including any claim for
Interest Subsidy Payments, Special Allowance Payments,
Insurance, reinsurance or Guarantee Payments);
(iii) a defense is asserted by a Borrower (or
endorser, if any) of the FFELP Loan with respect to a
Borrower's obligation to pay all or any part of the FFELP
Loan, and Participant, in good faith, believes that the facts
reported, if true, raise reasonable doubts as to the legal
enforceability of such FFELP Loan; or
(iv) the instrument which Lender purports to be a
FFELP Loan is not, in fact, a FFELP Loan;
then Lender shall repurchase the participation interest in such FFELP Loan or
purported FFELP Loan upon the request of Participant by paying Participant the
then outstanding principal balance of such FFELP Loan or purported FFELP Loan
(or such greater amount as may be necessary to make the Participant whole), plus
interest and applicable Special Allowance Payments with respect to such FFELP
Loan or purported FFELP Loan from the date of purchase of the participation
interest therein to and including the date of repurchase, plus any amounts owed
to the Secretary of Education with respect to the repurchased FFELP Loan or
purported FFELP Loan, plus any attorney fees, legal expenses, court costs,
servicing fees or other expenses incurred by Participant in connection with such
FFELP Loan or purported FFELP Loan, less Lender's Retained Interest with respect
to such FFELP Loan.
III. REPRESENTATIONS AND WARRANTIES
Section 3.01. Lender's Representations and Warranties. Lender
hereby represents, warrants and covenants to Participant as follows:
A. Any information furnished by Lender to the Participant, or the
Participant's agents with respect to a FFELP Loan is true, complete and correct.
B. The amount of the unpaid principal balance of each FFELP Loan
is due and owing, and no counterclaim, offset, defense or right to rescission
exists with respect to any FFELP Loan which can be asserted and maintained or
which, with notice, lapse of time or the
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occurrence or failure to occur of any act or event could be asserted and
maintained by the Borrower against the Trustee or the Participant as assignee
thereof. Lender shall have taken all reasonable actions to assure that no maker
of a FFELP Loan has or may acquire a defense to the payment thereof. No payment
of principal or interest with respect to any FFELP Loan is, as of the date
hereof, more than 60 days delinquent and no applicable payment of principal or
interest with respect to any FFELP Loan will, at the applicable Loan Purchase
Date, be more than 60 days delinquent. No FFELP Loan carries a rate of interest
less than, or in excess of, the applicable rate of interest required by the
Higher Education Act. If the Higher Education Act permits Lenders to charge an
interest rate less than the applicable rate of interest, no FFELP Loan purchased
hereunder bears interest at a rate lower than the applicable rate of interest;
provided, however, that the Participant may approve, in its sole discretion, in
writing, interest reductions which are part of a borrower repayment incentive
program of Lender, the terms of which have been fully described in detail and in
writing to the Participant.
C. Each FFELP Loan has been duly executed and delivered and
constitutes the legal, valid and binding obligations of the maker (and the
endorser, if any) thereof, enforceable in accordance with its terms.
D. Each FFELP Loan complies in all respects with the requirements
of the Higher Education Act and is an Eligible Loan, as that term is defined in
the Agreement.
E. Lender or Lender's eligible lender trustee has applied for and
received the Secretary of Education's or a Guarantee Agency's designation, as
the case may be, as an "Eligible Lender" under the Higher Education Act, and
Lender has entered into all agreements required to be entered into for
participation in the Federal Family Education Loan Program under the Higher
Education Act.
F. Lender (and the Trustee, if applicable) is the sole owner and
holder of each FFELP Loan and has full right and authority to sell and assign
the same free and clear of all liens, pledges or encumbrances; no FFELP Loan has
been pledged or assigned for any purpose; and each FFELP Loan is free of any and
all liens, charges, encumbrances and security interests of any description.
G. Each FFELP Loan is either Insured or Guaranteed; such
Insurance or Guarantee, as the case may be, is in full force and effect, is
freely transferable as an incident to the sale of each FFELP Loan; all amounts
due and payable to the Secretary of Education or a Guarantee Agency, as the case
may be, have been or will be paid in full by Lender, and none of the FFELP Loans
has at any time been tendered to either the Secretary of Education or any
Guarantee Agency for payment.
H. There are no circumstances or conditions with respect to any
FFELP Loan, the Borrower thereunder or the creditworthiness of said Borrower
that would reasonably cause prudent private investors to regard any of the FFELP
Loans as an unacceptable investment, or adversely affect the value or
marketability thereof, the insurance thereof and any applicable Guarantee.
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I. Each FFELP Loan was made in compliance with all applicable
local, State and federal laws, rules and regulations, including, without
limitation, all applicable nondiscrimination, truth-in-lending, consumer credit
and usury laws.
J. Lender has, and its officers acting on its behalf have, full
legal authority to engage in the transactions contemplated by the Agreement; the
execution and delivery of the Agreement, the consummation of the transactions
herein contemplated and compliance with the terms, conditions and provisions of
the Agreement do not and will not conflict with or result in a breach of any of
the terms, conditions or provisions of the charter, articles or bylaws of Lender
or any agreement or instrument to which Lender is a party or by which it is
bound or constitute a default thereunder; Lender is not a party to or bound by
any agreement or instrument or subject to any charter or other Participant
restriction, or judgment, order, writ, injunction, decree, law, rule or
regulation which may materially and adversely affect the ability of Lender to
perform its obligations under the Agreement and the Agreement constitutes a
valid and binding obligation of Lender enforceable against it in accordance with
its terms, and no consent, approval or authorization of any government or
governmental body, including, without limitation, the Federal Savings and Loan
Insurance Participant, the Federal Deposit Insurance Participant, the
Comptroller of the Currency, the Board of Governors of the Federal Reserve
System or any state bank regulatory agency, is required in connection with the
consummation of the transactions herein contemplated.
K. Lender is duly organized, validly existing and in good
standing under the laws of its applicable jurisdiction and has the power and
authority to own its assets and carry on its business as now being conducted.
L. Lender and Servicer have each exercised (and shall continue to
exercise) due diligence and reasonable care in making, administering, servicing
and collecting the FFELP Loans, and Lender has conducted a reasonable
investigation of sufficient scope and content to enable it duly to make the
representations and warranties contained in this Agreement. Lender shall be
solely responsible for the payment of the costs and expenses incident to
origination of FFELP Loans, without any right of reimbursement therefor from the
Participant.
M. With respect to all Insured Eligible Loans in which a
participation interest is being acquired, Insurance is in effect with respect
thereto; the applicable Contract and certificates of Insurance are valid and
binding upon the parties thereto in all respects material to the security for
any bonds and/or notes issued by the Participant; and Lender is not in default
in the performance of any of its covenants and agreements made in respect
thereof.
N. With respect to all Guaranteed Eligible Loans in which a
participation interest is being acquired, a Guarantee Agreement is in effect
with respect thereto and is valid and binding upon the parties thereto in all
respects material to the security of the bonds and/or notes issued by the
Participant to finance the FFELP Loans; and Lender is not in default in the
performance of any of its covenants and agreements made in such Guarantee
Agreement.
O. Lender does not (i) discriminate by pattern or practice
against any particular class or category of students by requiring, as a
condition to the receipt of a student loan, that a student
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or his family maintain a business relationship with Lender, except as may be
permitted under applicable laws or (ii) discriminate on the basis of race, sex,
color, creed or national origin.
P. The FFELP Loans are a representative sample of all student
loans held by Lender with respect to the educational institution attended by, or
the age, sex, race, national origin or place of residence of, the Borrower to
whom such loans were made, or with respect to any other identifying
characteristic of such Borrowers.
Q. Each participation interest transferred to the Participant
under the Agreement is a participation interest in a FFELP Loan which
constitutes an Eligible Loan.
R. The fair salable value of the assets on a going concern basis
of Lender and its subsidiaries, on a consolidated basis, as of the time of each
sale of participation interests hereunder is in excess of the total amount of
their liabilities.
S. Lender has carefully reviewed the Loan Purchase Regulations
supplied by the Participant and has complied, and shall continue to comply, with
all applicable Loan Purchase Regulations.
T. Each FFELP Loan in which a participation interest is purchased
pursuant to this Agreement includes all Eligible Loans of any one Borrower held
by Lender.
Section 3.02 Participant's Representations and Warranties.
Participant hereby represents and warrants to Lender that execution, delivery
and performance of this Agreement by Participant (i) has been duly authorized or
ratified effective as of the date of execution by all necessary corporate action
on the part of Participant; (ii) does not and will not contravene the laws of
the state of its incorporation providing for the organization and governing of
Participant; (iii) does not and will not conflict with, or result in a violation
of, any applicable laws; and (iv) does not and will not require any consent or
approval of any creditor or constitute a violation of or default under any
agreement or instrument to which Participant is a party or whereby any of its
property may be bound.
IV. TERM
Section 4.01. Termination. The term of this Agreement shall be from
the date first set forth above until the termination of the Commitment Period.
If Lender or the Trustee transfers title to a specific Eligible Loan covered by
the Participation Certificate to Participant, the participation interest with
respect to such transferred Eligible Loan shall terminate on the date of such
transfer. Immediately upon termination (without renewal) of this Agreement and
of the Participation Certificate, or any portion thereof, Lender's Retained
Interest, as then accrued and unpaid, shall be paid and if Participant is not in
material default of its obligations under this Agreement, Lender shall
immediately transfer to Participant or its designee legal title to the Eligible
Loans covered by the terminated portion of the Participation Certificate. At or
prior to such transfer of legal title, Lender shall execute and deliver to
Participant or its designee an executed Loan Purchase Agreement, together with
all documents of transfer in connection therewith, between Lender as Seller and
Participant or its designee as Purchaser, effective to
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transfer title to the Eligible Loans covered in the terminated portion of the
Participation Certificate as of the termination of the participation, free and
clear of any liens, encumbrances, pledges, or security interests of any nature.
Title to an Eligible Loan which is partially disbursed as of the termination of
this Agreement shall be transferred as described in the preceding sentence as
soon as possible after such Eligible Loan is fully disbursed.
V. OTHER PROVISIONS
Section 5.01 Indemnification. Lender agrees to indemnify and hold
Participant and its successors and assigns harmless from and against any and all
loss, liability, cost, damage or expense (including reasonable attorneys fees
and costs of litigation) incurred by reason of any breach of Lender's
representations, warranties or covenants hereunder or any false or misleading
representations or any failure to disclose any matter which makes the warranties
and representations herein misleading or any inaccuracy in any information
furnished by Lender in connection herewith. This indemnity obligation shall
survive execution of the Agreement and termination of the Commitment Period.
Section 5.02 Assignment. The rights of Participant under this
Agreement may be freely assigned or subparticipated, in whole or in part,
without prior written consent of Lender. The rights and obligations of Lender
under this Agreement may not be assigned in whole or in part without the prior
written consent of Participant. This Agreement shall be binding upon the
parties hereto, and their permitted successors and assigns. Lender acknowledges
that Participant has assigned all of its right, title and interest in and to the
Participation Certificate and this Participation Agreement to providers of
funding under the Financing Agreements with the power and right to enforce the
provisions thereof and hereof.
Section 5.03 No Partnership. This Agreement shall not be construed
to create a partnership or joint venture between Lender and Participant. The
transaction evidenced by this Agreement is a loan participation transaction
pursuant to which Lender and Participant are participating in the Eligible
Loans.
Section 5.04 Amendment. This Agreement may be modified or
otherwise amended only if such modification or amendment is in writing and
signed by both Lender and Participant. The parties agree to make such
modifications or amendments to this Agreement from time to time as may be
reasonably necessary to maintain compliance with the Higher Education Act.
Section 5.05 Notices. All notices and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given
if delivered with a written receipt from the recipient or mailed by certified
United States mail, sufficient postage pre-paid, or sent by nationally
recognized overnight delivery service such as Federal Express, addressed as
follows:
If to Lender:
____________________________
Attention: _________________
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____________________________
____________________________
if to Participant:
____________________________
Attention:__________________
____________________________
____________________________
or to any such address as either party may direct in writing delivered to the
other party as set forth herein. Notice shall be effective (i) if mailed or
delivered, upon receipt, refusal of receipt or the date marked as uncollected,
or (ii) if sent by overnight delivery, the earlier of receipt of two business
days after deposit with the delivery service.
Section 5.06. Continuing Representations. The warranties and
representations of the parties contained in Article III hereof shall survive
execution of this Agreement and the Commitment Period and bind the parties
hereto as continuing covenants.
Section 5.07. Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Nebraska.
Section 5.08 Counterparts. This Agreement may be simultaneously
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
Section 5.09 Severability. If any provision of this Agreement
shall be held, deemed to be or shall, in fact, be inoperative or unenforceable
as applied to any particular situation, such circumstances shall not have the
effect of rendering the provision in question inoperative or unenforceable in
any other situation or of rendering any other provision or provisions herein
contained invalid, inoperative or unenforceable to any extent whatsoever. The
invalidity of any one or more phrases, sentences, clauses or paragraphs herein
contained, shall not affect the remaining portions of this Agreement or any part
hereof.
Section 5.10 Non-exclusive Remedies. No remedy by the terms of
this Agreement conferred upon or reserved to Participant is intended to be
exclusive of any other remedy, but each and every other remedy shall be
cumulative and in addition to every other remedy given under this Agreement or
existing at law or in equity (including, without limitation, the right to such
equitable relief by way of injunction) or by statute on or after the date of
this Agreement.
Section 5.11 Servicing. Each Eligible Loan covered by the
Participation Certificate shall be serviced pursuant to the Servicing Agreement
for the life of such loan by Servicer and shall not be removed from the
servicing system of Servicer, except as provided below. Lender agrees that each
FFELP Loan participated pursuant to this Agreement which is held by or on behalf
of Lender or any of Lender's affiliates after the date of this Agreement shall
be serviced by Servicer under a servicing agreement for a term of the life of
such loan and shall not be
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removed from the servicing system of Servicer; provided, however, that Lender
may engage a servicing agent other than Servicer only if Participant approves
such servicing agent in writing and the Borrower attends an educational
institution which expressly requires servicing of all student loans made to its
students to be performed exclusively by a servicing agent other than Servicer,
and provided further, however, that Participant may, at its option, require
transfer of servicing to a new servicing agent as approved by Participant upon
material default under the Servicing Agreement or insolvency or filing of
bankruptcy by Servicer.
Section 5.12 Bankruptcy of Lender. Upon the filing of bankruptcy
or receivership by Lender, Lender shall cause title to each Eligible Loan
covered by the Participation Certificate to be transferred by Lender or the
Trustee to Participant or its designee.
Section 5.13 Further Assurances. Lender shall, at its expense,
execute all other documents and take all other steps as may be requested by
Participant from time to time to effect the sale of the participation interests
in the FFELP Loans hereunder.
Section 5.14 Information. Lender shall, at its expense, furnish to
Participant such additional information concerning Lender's FFELP Loan portfolio
as Participant may reasonably request.
Section 5.15 Security Interest. The parties to this Agreement
intend that the conveyance of Lender's right, title and interest in and to the
FFELP Loans shall constitute an absolute sale, conveying good title free and
clear of any liens, claims, encumbrances or rights of others from Lender to
Participant. The parties to this Agreement intend that the arrangements with
respect to the participation interest in FFELP Loans shall constitute a purchase
and sale of such participation interests and not a loan. In the event, however,
that it were determined by a court of competent jurisdiction that the
transactions evidenced by this Agreement shall constitute a loan and not a
purchase and sale, the parties hereto intend that this Agreement would
constitute a security agreement under applicable law and that Lender shall be
deemed to have granted, and hereby does grant (subject to the condition above),
to Participant a first priority perfected security interest in all of Lender's
right, title and interest, whether now owned or hereafter acquired, in, to and
under all accounts, general intangibles, chattel paper, instruments, documents,
goods, investment property, money, deposit accounts, certificates of deposit,
letters of credit, advices of credit and other property consisting of, arising
from or related to the following collateral to secure the rights of Participant
hereunder and the obligations of Lender hereunder (collectively, the "Pledged
Collateral"):
(i) all participation interests in FFELP Loans;
(ii) all revenues and recoveries of principal
from participation interests in FFELP Loans,
including all borrower payments and
reimbursements of principal and accrued
interest on default claims received from any
Guarantor;
(iii) any other revenues and recoveries of
principal and interest, other payments and
reimbursements of principal and
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accrued interest received with respect to
any participation interests in FFELP Loans,
any other collection of cash with respect to
such FFELP Loans (including, but not limited
to, Interest Subsidy Payments and Special
Allowance Payments) received and all other
cash collections, tax refunds and other cash
proceeds of the Pledged Collateral;
(iv) all other security interests or liens and
property subject thereto from time to time,
if any, purporting to secure payment of such
participation interests in FFELP Loans,
whether pursuant to the contract related to
such participation interests in FFELP Loans
or otherwise;
(v) all documents, books, records and other
information (including, without limitation,
computer programs, tapes, disks, punch
cards, data processing software and related
property and rights) maintained with respect
to participation interests in FFELP Loans
otherwise in respect of the pledged
collateral; and
(vi) all proceeds of the foregoing (including,
but not by way of limitation, all cash
proceeds, accounts, accounts receivable,
notes, drafts, acceptances, chattel paper,
checks, deposit accounts, insurance
proceeds, condemnation awards, rights to
payment of any and every kind, and other
forms of obligations and receivables or
other liquidated property which at any time
constitute all or part or are included in
the proceeds of any of the foregoing
property).
Lender agrees that from time to time, at its expense, it will
properly execute and deliver all further instruments and documents, and take all
further action that Participant may reasonably request in order to perfect,
protect or more fully evidence Participant's interest in the Pledged Collateral
or to enable Participant to exercise or enforce any of its rights hereunder.
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IN WITNESS WHEREOF, the parties have caused this Participation
Agreement to be executed by officers duly authorized as of the day first above
written.
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_____________________________________ _________________________________
By: ______________________________ By: __________________________
Title: ______________________________ Title: __________________________
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PARTICIPATION CERTIFICATE
Pursuant to that certain Participation Agreement (the "Agreement")
dated _____________________ ____________, 2000, by and between
_____________________________ (the "Participant") and _______________________
(the "Lender"), Lender hereby issues and delivers this Participation Certificate
to evidence Participant's participation interests in student loans guaranteed
under the Higher Education Act of 1965, as amended, which are identified by the
schedule marked as Exhibit "A," attached hereto and incorporated herein by this
reference, which may be amended or supplemented from time to time, which loans
or interests therein are owned by Lender and are serviced by ________________
and designated a separate account, in accordance with the terms of the
Agreement. This Participation Certificate shall be governed, in all respects, by
the Agreement, the terms of which are incorporated herein by this reference as
if fully stated herein.
_____________________________________
By: _____________________________________
Title: _____________________________________
Accepted this ________ day of ___________, 20______.
____________________________________
By: _____________________________________
Title: _____________________________________
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EXHIBIT "A"
Schedule of Loans
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