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EXHIBIT 4.14
LENDER PARTICIPATION AGREEMENT
GUARANTEED STUDENT LOAN PROGRAM
The New Mexico Student Loan Guarantee Corporation ("Guarantor"), a New Mexico
nonprofit corporation having an office at 3900 Xxxxx, N.E. in Albuquerque, New
Mexico and The First National Bank of Chicago as Trustee for the PNC Student
Loan Trusts ("Secondary Market") having an office at Xxx Xxxxx Xxxxxxxx Xxxxx,
Xxx. 0000, Xxxxxxx, XX 00000 agree:
PARTIES
The Guarantor is established as a nonprofit corporation to insure educational
loans in accordance with the New Mexico Educational Assistance Act, New Mexico
Laws 1981, chapter 319, as amended, and for the purposes of Title IV, Part B of
the federal Higher Education Act of 1965, as amended (the "Act"). The Guarantor
is qualified as a Guarantee Agency as defined by the Act.
The Secondary Market is an institution qualified under the Act to purchase
educational loans of residents of New Mexico.
GUARANTOR POLICIES PART OF AGREEMENT
The written policies of the Guarantor, as they may be amended from time to time
(the "Guarantor Policies"), are incorporated into this agreement by reference
and will govern the eligibility of educational loans for insurance under this
agreement and the payment of claims by Guarantor. The Lender acknowledges
receipt of a copy of the Guarantor Policies.
COMPLIANCE WITH THE ACT
The Guarantor Policies will at all times comply with the Act and its
implementing regulations, Title 34, Parts 682 and 683 of the Code of Federal
Regulations (the "Regulations") as amended, supplemented or superseded. The
provisions of the Act and Regulations are incorporated into this agreement by
reference and supersede any part of the Guarantor Policies not in compliance
with the Act and Regulations.
LENDER COMPLIANCE
The Secondary Market will comply with Guarantor Policies and the Act and
Regulations with respect to all servicing the loans that are insured under this
agreement.
INSURANCE OF LOANS
Guarantor will insure all loans purchased by secondary markets that qualify for
insurance under this agreement including: 100% of the amount of the unpaid
principal balance or 98% of the unpaid principal balance for loans first
disbursed after September 30, 1993, plus that part of the accrued interest
which is not collectible as interest benefits from the federal government and
accrues during such time as the Guarantor Policies provide.
INSURANCE RESERVES
Guarantor will at all times maintain a fund balance as defined in the Guarantor
Policies restricted for the payment of claims in an amount not less than 1.5% of
total outstanding loans insured by the Guarantor. For the purposes of this
agreement, "fund balance" is defined to include the restricted portion of the
Guarantee Corporation's fund balance together with all deferred guaranty fees
and federal advances, as appears in the Guarantee Corporation's financial
statements.
TERMINATION
This agreement may be terminated by either party upon 90 days written notice to
the other party, or as otherwise provided by the Guarantor Policies.
Termination of this agreement will not affect any obligations incurred prior to
the time such termination becomes effective.
Date 3-24-97 The First National Bank of Chicago as
Trustee for the PNC Student Loan Trusts
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Secondary Market
833364
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Lender Federal I.D. Number
by /s/ Xxxxxxx X. Xxxxxx
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Title Assistant Vice President
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New Mexico Student Loan
Guarantee Corporation
by /s/ Xxxxx X. Xxxxxx
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Title Executive Vice President
