Exhibit 10.10
FEDERAL CONSOLIDATION LOAN PROGRAM LENDER
PARTICIPATION AGREEMENT
This agreement is made and entered into by and between the Missouri Coordinating
Board for Higher Education ("CBHE"), and Student Loan Finance Corporation and
Subsidiaries (US Bank Trustee) (Lender Code: 833405) ("Eligible Lender").
WHEREAS, the Eligible Lender wishes to participate in a program of Federal
Consolidation Loans for eligible borrowers under Title IV, Part B of the Higher
Education Act of 1965, as amended, ("Higher Education Act"), all regulations
promulgated pursuant to the Higher Education Act including all amendments to the
regulations, and Sections 173.095 through 173.187 of the Missouri Revised
Statutes; and
WHEREAS, the CBHE has determined that the Eligible Lender qualifies as an
eligible lender under the Higher Education Act, the applicable regulations, and
Missouri statutes.
NOW THEREFORE, it is agreed by the CBHE and the Eligible Lender as follows:
1) The Eligible Lender is currently an eligible lender with the CBHE for the
Federal Family Education Loan (FFEL) Program.
2) Subject to the Common Manual and the Federal Consolidation Loan Program
Policies and Procedures ("Policies and Procedures") published by the Missouri
Student Loan Program, which Policies and Procedures are attached hereto as
Exhibit A, the CBHE shall guarantee all Federal Consolidation Loans the Eligible
Lender makes, and CBHE-guaranteed Federal Consolidation Loans the Eligible
Lender acquires, that are eligible for reinsurance under the Higher Education
Act and the regulations issued thereunder.
3) The Eligible Lender shall execute a separate Lender Participation Agreement
for each lender code under which the Eligible Lender will make Federal
Consolidation Loans under the CBHE guarantee or acquire Federal Consolidation
Loans the CBHE guarantees. The Eligible Lender shall execute a separate
Certificate of Comprehensive Insurance for each lender code under which the
Eligible Lender will make Federal Consolidation Loans under the CBHE guarantee.
4) The Eligible Lender shall make a Federal Consolidation Loan pursuant to
this Agreement to an eligible borrower (upon request of the borrower) only if it
obtains the borrower's certification that the borrower has no other application
pending for a Federal Consolidation Loan. If all the borrower's FFEL Program
loans are held by a single lender other than the Eligible Lender, the Eligible
Lender shall obtain from the borrower a certification that: (A) the borrower has
sought and has been unable to obtain a Federal Consolidation Loan through the
holder of the borrower's FFEL Program loans; or (B) the holder declined to
provide a Federal Consolidation Loan with an income-sensitive repayment
schedule.
5) The Eligible Lender shall comply with all legal requirements governing the
making and disbursing of Federal Consolidation Loans including, but not limited
to, the requirements set
forth in Section 428C of the Higher Education Act of 1965, as amended, and all
regulations promulgated thereunder.
6) The Eligible Lender shall make each Federal Consolidation Loan in an amount
that is equal to the sum of the unpaid principal and accrued unpaid interest and
late charges of all the borrower's eligible student that are selected for
consolidation.
7) The proceeds of the Federal Consolidation Loan shall be paid by the
Eligible Lender to the holder(s) of the loans selected for consolidation to
fully discharge the liability of such loans.
8) The Eligible Lender shall report the Federal Consolidation Loan to the CBHE
within the time frame specified in the Common Manual and the Policies and
Procedures. The lender shall include all proper notification documentation
outlined in the Policies and Procedures.
9) The Eligible Lender shall send the borrower who is interested in
consolidation counseling materials that the CBHE has reviewed.
10) The Eligible Lender shall ensure that Federal Consolidation Loans the CBHE
guarantees are sold or transferred to an Eligible Lender or eligible lender
code. Non-compliance shall result in the permanent loss of insurance on all
affected Federal Consolidation Loans.
11) The Eligible Lender shall report to the CBHE the purchase or transfer of a
Federal Consolidation Loan the CBHE guaranteed within 45 days of the sale or
transfer. Subject to #10 above, the Eligible Lender shall report to the CBHE
within 45 days of the date it transfers a Federal Consolidation Loan the CBHE
guaranteed from one of its lender codes to another.
12) The Eligible Lender shall comply with all obligations, conditions,
requirements and other guidelines set forth herein, in the Common Manual, and in
the Policies and Procedures.
13) The Eligible Lender agrees to follow such other published terms and
conditions as the Secretary of the U.S. Department of Education or the CBHE
specifically requires to carry out the Federal Consolidation Loan Program.
14) Either party to this Agreement may terminate the Agreement upon written
notice to the other party, and such termination shall be effective immediately
upon receipt of such notice. The termination of the Contract shall not affect
the coverage of loans under guarantees issued prior to such termination.
Federal Consolidation Loan Program Lender Participation Agreement
Page 2
IN WITNESS WHEREOF, the CBHE and the Eligible Lender have each caused this
instrument to be executed this 7th day of February 2002 , by their respective
duly authorized officers.
Student Loan Finance Corporation
and Subsidiaries (US Bank Trustee) 833405 00-0000000
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Lender Lender Code Federal Employer I.D. Number
BY /s/ Xxx Xxxxxx 2-7-2002
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Signature Date
Xxx Xxxxxx Corporate Trust Officer
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Name Title
XX Xxx 0000 000 X Xxxx Xxx Xxxxx Xxxxx, XX 00000-0000
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Xxxxxx Xxxxxxx Xxxx xxx Xxxxx Xxx
Xxxxxxxxxxxx Board for Higher Education
/s/ Xxxx X. Xxxxxx July 16, 2002
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Authorized Signature Date
Xxxx X. Xxxxxx Commissioner of Higher Education
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Name Title
RETURN TWO SIGNED COPIES TO THE MISSOURI
COORDINATING BOARD FOR HIGHER EDUCATION
Federal Consolidation Loan Program Lender Participation Agreement
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FEDERAL CONSOLIDATION LOAN PROGRAM
CERTIFICATE OF COMPREHENSIVE INSURANCE
The Missouri Coordinating Board for Higher Education (CBHE) authorizes that all
Federal Consolidation Loans made in conformity with the requirements of Part B
of Title IV of the Higher Education Act of 1965, as amended, by Student Loan
Finance Corporation and Subsidiaries (US Bank Trustee) (Lender Code: 833405),
herein referred to as the "Eligible Lender", are fully insured against loss of
principal and interest by the CBHE, provided:
1) The Eligible Lender has determined to its satisfaction, in accordance with
reasonable and prudent business practices, for each loan being consolidated --
a) that the loan is a legal, valid, and binding obligation of the
borrower;
b) that each such loan was made and serviced in compliance with all
applicable laws and regulations; and
c) that, in the case of loans made under Part B of Title IV, the
insurance on such loan is in full force and effect.
2) That the Federal Consolidation Loan(s) will be made on or after
July 16, 2002 but no later than provided for in the Higher Education Act of
1965, as amended.
3) That the total unpaid principal amount of all Federal Consolidation Loans
made under this certificate by Lender Code 833405 is equal to or less than $10
million.
4) That, if the Eligible Lender, prior to the expiration of this certificate,
no longer proposes to make Federal Consolidation Loans or make Federal
Consolidation Loans under the CBHE's guarantee, the Eligible Lender will provide
the CBHE with written notification in order that the certificate may be
terminated. Such termination shall not affect the insurance on any Federal
Consolidation Loan made prior to such termination.
5) That the Eligible Lender's Federal Consolidation Loan Program practices are
subject to the CBHE's Student Loan Program lender participation limitation,
suspension and termination procedures. The insurance on any Federal
Consolidation Loan(s) made under this certificate prior to the CBHE's imposition
of a limitation, suspension, or termination action shall not be affected by such
action.
6) That the Eligible Lender complies with the CBHE's reporting requirements
specified in the Common Manual and the Missouri Student Loan Program (MSLP)
Federal Consolidation Loan Policies and Procedures.
7) That the Eligible Lender offers Federal Consolidation Loan borrowers
repayment terms and a choice of repayment schedules as required by the Higher
Education Act of 1965, as amended, and applicable regulations.
The MSLP's contract servicer is designated as the office that will process
claims and perform other related administrative functions.
Coordinating Board for Higher Education
/s/ Xxxx X. Xxxxxx July 16, 2002
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Signature Date
Xxxx X. Xxxxxx Commissioner of Higher Education
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Name Title
Certificate of Comprehensive Insurance Participation Agreement
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