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Exhibit 10.11
PENNSYLVANIA HIGHER EDUCATION LENDER AGREEMENT FOR GUARANTEE OF
ASSISTANCE AGENCY LOAN GUARANTY STUDENT LOANS WITH FEDERAL
AGREEMENT REINSURANCE (for loans to students and parents of
students pursuant to the Higher Education Act of 1965.
as amended)
WHEREAS Star Bank, N.A. as Trustee for Student Loan Funding ,
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(Corporate Name)
Located at 000 Xxxxxx Xxxxxx, XX 0000. X.X. Xxx 0000 ,
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(Xxxxxx Address)
Xxxxxxxxxx, XX 00000-0000 ,
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(City) (State) (Zip Code)
hereinafter referred to as the "Lender," wishes to be able to secure guarantee
of loans made to students pursuing programs of higher or vocational education at
eligible institutions, and to parents of such students pursuant to the Higher
Education Act of 1965, as amended, hereinafter referred to as the "Act;" and
WHEREAS, the Pennsylvania Higher Education Assistance Agency, hereinafter
referred to as the "Agency," was created by the Act of August 7, 1963, P.L. 549
for the purpose of improving higher educational opportunities and to that end
the Agency is empowered to guarantee loans; and
WHEREAS, the lender wishes to participate in the Agency's Guaranty Program.
NOW THEREFORE, it is mutually agreed that:
1. Within such limits as may be set by it, the Agency shall guarantee the
full amount of all loans made by the Lender, or for loans with a first
disbursement on or after October 1, 1993, 98% of the full amount of
all loans made by the Lender, which are eligible for such guarantee
under the Act, the regulations issued under the Act and the Rules and
Regulations and policies of the Agency with the exception of those
pertaining to Pennsylvania Residency/Domicile, which Act, regulations,
Rules and Regulations and policies as they may be from time to time
amended are made part of this Agreement.
2. The Agency shall guarantee loans without regard to sex, age, race,
color, religion, handicapped status, income, national origin or any
other basis prohibited by applicable law and the Lender will not
discriminate in the making of loans to eligible borrowers or in the
treatment of such borrowers on any prohibited basis.
3. On all loans guaranteed, the Agency agrees to obtain maximum
reinsurance by means of an agreement with the Federal Government
pursuant to the Act.
4. The Lender authorizes the Agency to act as its representative with
respect to retaining the school's statement of the student's
enrollment and need. This document will be retained for the five-year
period as required of the lender by federal regulations.
5. The Lender shall maintain for all loans guaranteed a system of records
and accounts, shall afford access thereto, and shall furnish such
periodic and separate reports as may reasonably be required by the
U.S. Secretary of Education and the Agency, under the Act,
regulations, Rules and Regulations and policies identified above. For
loans paid in full or otherwise discharged, the records shall be
retained by the lender as required by the Act, regulations, Rules and
Regulations, and policies identified above.
6. The Agency agrees to purchase eligible loans made by the lender
provided that such loans are in default (as defined by the Act,
regulations, Rules and Regulations and policies identified above); the
loan was made in accordance with the Act, regulations, Rules and
Regulations and policies identified above; the Lender has otherwise
exercised due diligence in the making, servicing, and collection of
such loans; and, title to the loan note has been subrogated to the
Agency by the Lender.
7. Failure of the Lender to comply with the terms hereof with respect to
an individual loan shall not invalidate the guarantee of the Agency to
the Lender with respect to other loans held in compliance with the
terms of this Agreement.
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8. Either party may terminate this agreement at any time upon 120 days'
notice in writing to the other party by registered or certified mail.
All rights, duties and obligations hereunder shall immediately cease
upon termination, except the rights and obligations of the parties
which existed as of the date of termination.
9. The lender wishes to participate in the following programs: (Please
check all applicable programs)
X Federal Xxxxxxxx Loan Programs (includes Subsidized and
----- Unsubsidized)
X Federal PLUS Loan Program (Parent Loan Program)
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X Federal Consolidation Loan Program
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IN WITNESS WHEREOF, the Lender and the Agency have caused this Agreement to be
duly executed and delivered this day of _______________, 19___.
Star Bank, N.A. as Trustee for
Student Loan Funding PENNSYLVANIA HIGHER EDUCATION
---------------------------------------------- ASSISTANCE AGENCY
Lender Name
/s/ Xxxxx X. Xxxxxxx /s/ Xxxxxxx X. Xxxxxxxx
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Authorized Signature
Xxxxxxx X. Xxxxxxxx
President & CEO
Senior Trust Officer
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Title Title
829626, 830631, 831008, 831299, 831455,
831640 831692, 831785, 833361, 833207
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D.E. Lender Code Number
00-0000000
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Federal Tax Identification Number
Approved as to form and legality this 20th day
of May, 1998.
THE ATTACHED AGREEMENT HAS
BEEN PRE-APPROVED BY THE
/s/ Xxxxxx Xxx Ford OFFICE OF THE ATTORNEY GENERAL.
---------------------------------------------- DOC. NO. _______________________
PHEAA Legal Counsel -----------------------------------------------
Deputy Attorney General
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