Exhibit 99.3
--------------------------------------------------------------------------------
FORM OF SERVICING AGREEMENT
among
THE STUDENT LOAN CORPORATION,
as Servicer and Administrator,
and
SLC STUDENT LOAN TRUST 200__-__,
as Issuer
Dated as of _______, 200__
--------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Article I
Section 1.1 Definitions and Usage..........................................1
Article II
Section 2.1 Custody of Trust Student Loan Files............................1
Section 2.2 Duties of Servicer as Custodian................................2
Section 2.3 Maintenance of and Access to Records...........................2
Section 2.4 Release of Documents...........................................2
Section 2.5 Instructions; Authority to Act.................................3
Section 2.6 Effective Period and Termination...............................3
Article III
Section 3.1 Duties of Servicer.............................................3
Section 3.2 Collection of Trust Student Loan Payments......................4
Section 3.3 Realization upon Trust Student Loans...........................5
Section 3.4 No Impairment..................................................5
Section 3.5 Purchase of Trust Student Loans; Reimbursement.................5
Section 3.6 Primary Servicing Fee; Carryover Servicing Fee.................8
Section 3.7 Access to Certain Documentation and Information Regarding
Trust Student Loans...........................................8
Section 3.8 Servicer Expenses..............................................8
Section 3.9 Appointment of Subservicer.....................................8
Section 3.10 Reports.......................................................10
Section 3.11 Securities and Exchange Commission Filings....................10
Section 3.12 Covenants and Agreements of the Issuer, Administrator,
the Eligible Lender Trustee and Servicer.....................11
Section 3.13 Special Programs..............................................12
Section 3.14 Financial Statements..........................................12
Section 3.15 Insurance.....................................................12
Section 3.16 Administration Agreement......................................13
Section 3.17 Lender Identification Number..................................13
Article IV
Section 4.1 Representations of Servicer...................................13
Section 4.2 Indemnities of Servicer.......................................14
Section 4.3 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer.....................................15
-i-
Section 4.4 Limitation on Liability of Servicer...........................15
Section 4.5 SLC Not to Resign as Servicer.................................16
Article V
Section 5.1 Servicer Default..............................................16
Section 5.2 Appointment of Successor......................................18
Section 5.3 Notification to Noteholders...................................19
Section 5.4 Waiver of Past Defaults.......................................19
Article VI
Section 6.1 Amendment.....................................................19
Section 6.2 Notices.......................................................20
Section 6.3 Counterparts..................................................20
Section 6.4 Entire Agreement; Severability................................21
Section 6.5 Governing Law.................................................21
Section 6.6 Relationship of Parties.......................................21
Section 6.7 Captions......................................................21
Section 6.8 Nonliability of Directors, Officers and Employees of
Servicer, the Owner Trustee, the Indenture
Administrator, the Indenture Trustee and the
Administrator................................................21
Section 6.9 Assignment....................................................21
Section 6.10 Limitation of Liability of Owner Trustee, Indenture
Administrator and Indenture Trustee..........................21
Article VII
Section 7.1 Intent of the Parties; Reasonableness.........................22
Section 7.2 Reporting Requirements........................................23
Section 7.3 Servicer Compliance Statement.................................23
Section 7.4 Report on Assessment of Compliance and Attestation............23
Attachment A Schedule of Fees
Attachment B Servicer Locations
Attachment C Reports
Attachment D Form of Certification
Attachment E Form of Annual Certification
Attachment F Servicing Criteria to be Addressed in Assessment of Compliance
-ii-
SERVICING AGREEMENT
The Student Loan Corporation ("SLC" and, in its capacity as servicer, the
"Servicer"), a Delaware corporation, hereby agrees with (i) SLC Student Loan
Trust 200__-__ (the "Issuer"), and (ii) SLC, not in its individual capacity but
solely in its capacity as administrator (in such capacity, the "Administrator")
under the Administration Agreement, dated as of ______,200__ (the
"Administration Agreement"), among the Issuer, the Administrator and the
Servicer as follows:
WHEREAS, the Issuer will acquire certain education loans to be held
in the trust formed pursuant to the Trust Agreement;
WHEREAS, the Issuer will issue notes (the "Notes") pursuant to the
Indenture, dated as of ______,200__ (the "Indenture"), among the Issuer,
_______________, as indenture trustee (the "Indenture Trustee"), and
______________, as indenture administrator (in such capacity, the "Indenture
Administrator") and as eligible lender trustee (in such capacity, the "Eligible
Lender Trustee"), which Notes are payable from the assets of the Issuer; and
WHEREAS, the Issuer and the Administrator desire the Servicer to
service the education loans on behalf of the Issuer, and the Servicer is willing
to service those education loans for the Issuer and the Administrator.
NOW, THEREFORE, in consideration of the premises and mutual
covenants herein contained, the parties hereto agree as follows:
Article I
Section 1.1 Definitions and Usage. Capitalized terms used herein and not defined
herein shall have the meanings assigned to such terms in Appendix A to the
Indenture, which also contains rules of usage and construction that shall be
applicable herein.
Article II
Section 2.1 Custody of Trust Student Loan Files. To assure uniform quality in
servicing the Trust Student Loans and to reduce administrative costs, the Issuer
hereby revocably appoints the Servicer, and the Servicer hereby accepts such
appointment, to act for the benefit of the Issuer as custodian of the following
documents or instruments (collectively the "Trust Student Loan Files"):
(a) the original fully executed copy of the note (or all
electronic records evidencing the same) evidencing the Trust
Student Loan; and
(b) any and all other documents and computerized records that the
Servicer shall keep on file, in accordance with its customary
procedures, relating to such Trust Student Loan or any obligor
with respect thereto.
Section 2.2 Duties of Servicer as Custodian. The Servicer shall hold the Trust
Student Loan Files for the benefit of the Issuer and maintain such accurate and
complete accounts, records and computer systems pertaining to each Trust Student
Loan File as shall enable the Issuer to comply with this Agreement. In
performing its duties as custodian the Servicer shall act with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to the student loan files relating to similar student loans that the
Servicer services on behalf of SLC and shall ensure that it fully complies with
all applicable Federal and state laws, including the Higher Education Act, with
respect thereto. The Servicer shall take all actions necessary with respect to
the Trust Student Loan Files held by it under this Agreement and of the related
accounts, records and computer systems, in order to enable the Issuer to verify
the accuracy of the Servicer's record keeping with respect to the Servicer's
obligations as custodian hereunder. The Servicer shall promptly report to the
Issuer, the Administrator, the Indenture Trustee and the Indenture Administrator
any material failure on its part to hold the Trust Student Loan Files and
maintain its accounts, records and computer systems as herein provided and
promptly take appropriate action to remedy any such failure. Nothing herein
shall be deemed to require an initial review or any periodic review by the
Issuer, the Owner Trustee, the Indenture Trustee or the Indenture Administrator
of the Trust Student Loan Files. If in the reasonable judgment of the Owner
Trustee it is necessary to preserve the interests of the Noteholders and the
Trust in the Trust Student Loans or at the request of the Administrator, the
Servicer shall transfer physical possession of the notes evidencing the Trust
Student Loans to the Owner Trustee, the Indenture Administrator, the Indenture
Trustee or any other custodian for any of them designated by the Owner Trustee.
Section 2.3 Maintenance of and Access to Records. The Servicer shall maintain
each Trust Student Loan File at one of its offices specified in Attachment B to
this Agreement or at such other office as shall be consented to by the Issuer
upon written notice to the Issuer. Upon reasonable prior notice, the Servicer
shall make available to the Issuer or its respective duly authorized
representatives, attorneys or auditors a list of locations of the Trust Student
Loan Files and the related accounts, records and computer systems maintained by
the Servicer at such times during normal business hours as the Issuer shall
instruct.
Section 2.4 Release of Documents. Upon written instruction from the Indenture
Administrator or the Indenture Trustee, the Servicer shall release any Trust
Student Loan File to the Indenture Administrator, the Indenture Administrator's
agent or the Indenture Administrator's designee, as the case may be, at such
place or places as the Indenture Administrator may reasonably designate, as soon
as practicable. The Indenture Administrator shall cooperate with the Servicer to
provide the Servicer with access to the Trust Student Loan Files in order for
the Servicer to continue to service the Trust Student Loans after the release of
the Trust Student Loan Files. In the event the Servicer is not provided access
to the Trust Student Loan Files, the Servicer shall not be deemed to have
breached its obligations pursuant to Section 3.1, 3.2, 3.3 or 3.4 if it is
unable to perform such obligations due to its inability to have access to the
Trust Student Loans Files. The Servicer shall not be liable for any losses with
respect to the servicing of such Trust Student Loans arising after the release
of the related Trust
-2-
Student Loan Files to the extent the losses are attributable to the Servicer's
inability to have access to the related Trust Student Loan Files.
Section 2.5 Instructions; Authority to Act. The Servicer shall be deemed to have
received proper instructions with respect to the Trust Student Loan Files upon
its receipt of written instructions signed by a Responsible Officer of the
Indenture Trustee or Indenture Administrator. Section
2.6 Effective Period and Termination. SLC's appointment as custodian shall
become effective as of the Closing Date and shall continue in full force and
effect for so long as SLC shall remain the Servicer hereunder. If SLC or any
successor servicer shall resign as Servicer in accordance with the provisions of
this Agreement or if all the rights and obligations of SLC or any such successor
servicer shall have been terminated under Section 5.1, the appointment of SLC or
such successor servicer as custodian shall be terminated simultaneously with the
effectiveness of such resignation or termination. On or prior to the effective
date of any resignation or termination of such appointment, the Servicer shall
deliver the Trust Student Loan Files to the successor servicer. In establishing
an effective date for the termination of the Servicer as custodian of the Trust
Student Loan Files, the parties shall provide for a reasonable period for the
Servicer to deliver the Trust Student Loan Files to its designated successor.
Article III
Section 3.1 Duties of Servicer. The Servicer, for the benefit of the Issuer (to
the extent provided herein), shall manage, service, administer and make
collections on the Trust Student Loans with reasonable care, using that degree
of skill and attention that the Servicer exercises with respect to similar
student loans that it services on behalf of SLC, beginning on the Closing Date
until the Trust Student Loans are paid in full. Without limiting the generality
of the foregoing or of any other provision set forth in this Agreement and
notwithstanding any other provision to the contrary set forth herein, the
Servicer shall manage, service, administer and make collections with respect to
the Trust Student Loans (including the collection of any Interest Subsidy
Payments and Special Allowance Payments on behalf of the Owner Trustee) in
accordance with, and otherwise comply with, all applicable Federal and state
laws, including all applicable rules, regulations and other requirements of the
Higher Education Act and the applicable Guarantee Agreements, the failure to
comply with which would adversely affect the eligibility of one or more of the
Trust Student Loans for Federal reinsurance or Interest Subsidy Payments or
Special Allowance Payments or one or more of the Trust Student Loans for receipt
of Guarantee Payments.
The Servicer's duties shall include, but shall not be limited to,
collection and posting of all payments, responding to inquiries of borrowers on
such Trust Student Loans (the "Borrowers"), monitoring Borrowers' status, making
required disclosures to Borrowers, performing due diligence with respect to
Borrower delinquencies, sending payment coupons to Borrowers and otherwise
establishing repayment terms, reporting tax information to Borrowers, if
applicable, accounting for collections and furnishing monthly statements with
respect thereto to the Administrator and the Issuer. The Servicer shall follow
its customary standards, policies and procedures in performing its duties as
Servicer. Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Owner Trustee, the Indenture Trustee, the Indenture Administrator,
and the
-3-
Noteholders or any of them, instruments of satisfaction or cancellation, or
partial or full release or discharge, and all other comparable instruments, with
respect to such Trust Student Loans; provided, however, that the Servicer agrees
that it will not (a) permit any rescission or cancellation of a Trust Student
Loan except as ordered by a court of competent jurisdiction or governmental
authority or as otherwise consented to in writing by the Indenture Trustee, the
Indenture Administrator and the Owner Trustee provided, however, that the
Servicer may write off any delinquent Trust Student Loan if the remaining
balance of the Borrower's account is less than $__ or (b) reschedule, revise,
defer or otherwise compromise with respect to payments due on any Trust Student
Loan except pursuant to any applicable interest only, deferral or forbearance
periods or otherwise in accordance with all applicable standards, guidelines and
requirements with respect to the servicing of Student Loans; provided further,
however, that the Servicer shall not agree to any reduction of yield with
respect to any Trust Student Loan (either by reducing Borrower payments or
reducing principal balance) except as permitted in accordance with Section 3.13.
The Owner Trustee, on behalf of the Issuer, hereby grants a power of attorney
and all necessary authorization to the Servicer to maintain any and all
collection procedures with respect to the Trust Student Loans, including filing,
pursuing and recovering claims with the Guarantors for Guarantee Payments and
with the Department for Interest Subsidy Payments and Special Allowance Payments
and taking any steps to enforce such Trust Student Loans such as commencing a
legal proceeding to enforce a Trust Student Loan in the name of the Issuer. The
Owner Trustee shall upon the written request of the Servicer furnish the
Servicer with any other powers of attorney and other documents reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.
Section 3.2 Collection of Trust Student Loan Payments.
A. The Servicer shall make reasonable efforts (including all efforts
that may be specified under the Higher Education Act or any Guarantee Agreement)
to collect all payments called for under the terms and provisions of the Trust
Student Loans as and when the same shall become due and shall follow such
collection procedures as it follows with respect to similar student loans that
it services on behalf of SLC. The Servicer shall allocate collections with
respect to the Trust Student Loans between principal, interest and fees in
accordance with Section 2.5 of the Administration Agreement. The Servicer may in
its discretion waive any late payment charge or any other fees that may be
collected in the ordinary course of servicing a Trust Student Loan.
B. The Servicer shall make reasonable efforts to claim, pursue and
collect all Guarantee Payments from the Guarantors pursuant to the Guarantee
Agreements with respect to any of the Trust Student Loans as and when the same
shall become due and payable, shall comply with all applicable laws and
agreements with respect to claiming, pursuing and collecting such payments and
shall follow such practices and procedures as it follows with respect to
comparable guarantee agreements and student loans that it services on behalf of
SLC. In connection therewith, the Servicer is hereby authorized and empowered to
convey to any Guarantor the note and the related Trust Student Loan File
representing any Trust Student Loan in connection with submitting a claim to
such Guarantor for a Guarantee Payment in accordance with the terms of the
applicable Guarantee Agreement. All amounts so collected by the Servicer shall
constitute Available Funds for the applicable Collection Period and shall be
deposited into the Collection Account or transferred to the Administrator in
accordance with Section 2.4 of the Administration Agreement. The Issuer shall,
upon the written request of the Servicer, furnish the Servicer with
-4-
any power of attorney and other documents necessary or appropriate to enable the
Servicer to convey such documents to any Guarantor and to make such claims.
C. The Servicer on behalf of the Owner Trustee shall, on behalf of
the Issuer, make reasonable efforts to claim, pursue and collect all Interest
Subsidy Payments and Special Allowance Payments from the Department with respect
to any of the Trust Student Loans as and when the same shall become due and
payable, shall comply with all applicable laws and agreements with respect to
claiming, pursuing and collecting such payments and shall follow such practices
and procedures as the Servicer follows with respect to similar student loans
that it services on behalf of SLC. All amounts so collected by the Servicer
shall constitute Available Funds for the applicable Collection Period and shall
be deposited into the Collection Account or transferred to the Administrator in
accordance with Section 2.4 of the Administration Agreement. In connection
therewith, the Servicer shall prepare and file with the Department on a timely
basis all claims forms and other documents and filings necessary or appropriate
in connection with the claiming of Interest Subsidy Payments and Special
Allowance Payments on behalf of the Owner Trustee and shall otherwise assist the
Owner Trustee in pursuing and collecting such Interest Subsidy Payments and
Special Allowance Payments from the Department. The Issuer shall upon the
written request of the Servicer furnish the Servicer with any power of attorney
and other documents reasonably necessary or appropriate to enable the Servicer
to prepare and file such claims forms and other documents and filings.
Section 3.3 Realization upon Trust Student Loans. For the benefit of the Issuer,
the Servicer shall use reasonable efforts consistent with its servicing
practices and procedures that it utilizes with respect to comparable student
loans that it services on behalf of SLC and including all efforts that may be
specified under the Higher Education Act or Guarantee Agreement in its servicing
of any delinquent Trust Student Loans.
Section 3.4 No Impairment. The Servicer shall not impair the rights of the
Issuer, the Eligible Lender Trustee, the Owner Trustee, the Indenture
Administrator, the Indenture Trustee or Noteholders in such Trust Student Loans.
Section 3.5 Purchase of Trust Student Loans; Reimbursement.
A. The Servicer, the Administrator, the Issuer, the Indenture
Administrator and the Indenture Trustee shall give notice to the other parties
promptly, in writing, upon the discovery of any breach of the provisions of
Section 3.1, 3.2, 3.3 or 3.4 which has a material adverse effect on the interest
of the Issuer. In the event of such a material breach which is not curable by
reinstatement of the Guarantor's guarantee of such Trust Student Loan, the
Servicer shall purchase the affected Trust Student Loan not later than 210 days
following the earlier of the date of discovery of such material breach and the
date of receipt of the Guarantor reject transmittal form with respect to such
Trust Student Loan. In the event of a material breach with respect to such Trust
Student Loan which is curable by reinstatement of the Guarantor's guarantee of
such Trust Student Loan, unless the material breach shall have been cured within
360 days following the earlier of the date of discovery of such material breach
and the date of receipt of the Guarantor reject transmittal form with respect to
such Trust Student Loan, the Servicer shall purchase such Trust Student Loan not
later than the sixtieth day following the end of such 360-day period. The
purchase price hereunder will be the unpaid principal amount of such Trust
-5-
Student Loan plus accrued and unpaid interest (calculated using the applicable
percentage that would have been insured pursuant to Section 428(b)(1)(G) of the
Higher Education Act) plus an amount equal to all forfeited Interest Subsidy
Payments and Special Allowance Payments with respect to such Trust Student Loan.
In consideration of the purchase of any such Trust Student Loan pursuant to this
Section 3.5, the Servicer shall remit the Purchase Amount to the Administrator
in the manner and at the time specified in Section 2.6 of the Administration
Agreement. Any breach that relates to compliance with the requirements of the
Higher Education Act or of the applicable Guarantor but that does not affect
such Guarantor's obligation to guarantee payments of a Trust Student Loan will
not be considered to have a material adverse effect for purposes of this Section
3.5A.
B. In addition, if any breach of Section 3.1, 3.2, 3.3 or 3.4 by the
Servicer does not trigger such purchase obligation but does result in the
refusal by a Guarantor to guarantee all or a portion of the accrued interest (or
any obligation of the Issuer to repay such interest to a Guarantor), or the loss
(including any obligation of the Issuer to repay to the Department) of Interest
Subsidy Payments and Special Allowance Payments, with respect to any Trust
Student Loan affected by such breach, then the Servicer shall reimburse the
Issuer in an amount equal to the sum of all such nonguaranteed interest amounts
that would have been owed to the Issuer by the Guarantor but for such breach by
the Servicer and such forfeited Interest Subsidy Payments or Special Allowance
Payments by netting such sum against the Servicing Fee payable to the Servicer
for such period and remitting any additional amounts owed in the manner
specified in Section 2.6 of the Administration Agreement not later than (i) the
last day of the next Collection Period ending not less than 60 days from the
date of the Guarantor's refusal to guarantee all or a portion of accrued
interest or loss of Interest Subsidy Payments or Special Allowance Payments, or
(ii) in the case where the Servicer reasonably believes such amounts are likely
to be collected, not later than the last day of the next Collection Period
ending not less than 360 days from the date of the Guarantor's refusal to
guarantee all or a portion of accrued interest or loss of Interest Subsidy
Payments or Special Allowance Payments. At the time such payment is made, the
Servicer shall not be required to reimburse the Issuer for interest that is then
capitalized, however, such amounts shall be reimbursed if the Borrower
subsequently defaults and such capitalized interest is not paid by the
Guarantor.
C. Anything in this Section 3.5 to the contrary notwithstanding, if
as of the last Business Day of any month the aggregate outstanding principal
amount of Trust Student Loans with respect to which claims have been filed with
and rejected by a Guarantor or with respect to which the Servicer determines
that claims cannot be filed pursuant to the Higher Education Act as a result of
a breach by the Servicer or the Depositor, exceeds 1% of the Pool Balance, the
Servicer or the Seller, as appropriate, shall purchase, within 30 days of a
written request of the Owner Trustee, the Indenture Trustee or the Indenture
Administrator, such affected Trust Student Loans in an aggregate principal
amount such that after such purchase the aggregate principal amount of such
affected Trust Student Loans is less than 1% of the Pool Balance. The Trust
Student Loans to be purchased by the Servicer or the Depositor pursuant to the
preceding sentence shall be based on the date of claim rejection (or date of
notice referred to in the first sentence of this Section 3.5) with the Trust
Student Loans with the earliest such date to be purchased first.
-6-
D. In lieu of repurchasing Trust Student Loans pursuant to this
Section 3.5, the Servicer may, at its option, with the prior consent of the
Administrator, arrange for the substitution of Student Loans which are
substantially similar as of the date of substitution on an aggregate basis to
the Trust Student Loans for which they are being substituted with respect to the
following characteristics:
(1) status (i.e., in-school, grace, deferment, forbearance or
repayment),
(2) program type (i.e., unsubsidized or subsidized Xxxxxxxx
(pre-1993 vs. (post-1993), PLUS or SLS, unsubsidized or
subsidized consolidation),
(3) school type (if available),
(4) total return,
(5) principal balance, and
(6) remaining term to maturity.
In addition, each substituted Student Loan shall comply, as of the date of
substitution, with the representations and warranties made by the Depositor in
the Sale Agreement. In choosing Student Loans to be substituted pursuant to this
subsection D, the Servicer shall make a reasonable determination that the
Student Loans to be substituted will not have a material adverse effect on the
Noteholders.
In the event the Servicer elects to substitute Student Loans
pursuant to this Section 3.5 and the Administrator consents to such
substitution, the Servicer will remit to the Administrator the amount of any
shortfall between the Purchase Amount of the substituted Student Loans and the
Purchase Amount of the Trust Student Loans for which they are being substituted.
The Servicer shall also remit to the Administrator an amount equal to all
nonguaranteed interest amounts that would have been owed to the Issuer by the
Guarantor but for the breach of the Servicer and forfeited Interest Subsidy
Payments and Special Allowance Payments with respect to the Trust Student Loans
in the manner provided in Section 2.6 of the Administration Agreement.
E. The sole remedy of the Issuer, the Owner Trustee, the Indenture
Administrator, the Indenture Trustee and the Noteholders with respect to a
breach pursuant to Section 3.1, 3.2, 3.3 or 3.4 shall be to require the Servicer
to purchase Trust Student Loans, to reimburse the Issuer as provided above or to
substitute Student Loans pursuant to this Section.
F. Neither the Owner Trustee, the Indenture Trustee, the Indenture
Administrator nor the Eligible Lender Trustee shall have any duty to conduct any
affirmative investigation as to the occurrence of any condition requiring the
purchase of any Trust Student Loan or the reimbursement for any interest penalty
pursuant to this Section 3.5.
G. The Servicer shall not be deemed to have breached its obligations
pursuant to Section 3.1, 3.2, 3.3 or 3.4 if it is rendered unable to perform
such obligations, in whole or in part, by a force outside the control of the
parties hereto (including acts of God, acts of war, fires, earthquakes,
hurricanes, floods and other disasters). The Servicer shall diligently perform
its duties under this Agreement as soon as practicable following the termination
of such interruption of business.
-7-
H. None of the Eligible Lender Trustee, the Indenture Administrator
or the Indenture Trustee shall have any responsibility for reviewing any Student
Trust Loan or any documents in connection therewith to determine if a Student
Trust Loan is an Eligible Loan or to determine whether any document is valid and
binding, any assignments or endorsements are in proper form or to inspect,
review or examine any documents, instruments, certificates or other papers to
determine that they are genuine, enforceable, or appropriate for the represented
purpose.
Section 3.6 Primary Servicing Fee; Carryover Servicing Fee. The Primary
Servicing Fee for each calendar month and any Carryover Servicing Fees payable
on any Distribution Date in arrears by the Issuer shall be equal to the amounts
determined by reference to the schedule of fees attached hereto as Attachment A.
Notwithstanding anything to the contrary contained herein or in any other Basic
Document, the Servicer shall be entitled to receive any Carryover Servicing Fee
on any Distribution Date only if and to the extent that sufficient funds are
available pursuant to Section 2.8(h) of the Administration Agreement.
Section 3.7 Access to Certain Documentation and Information Regarding Trust
Student Loans. Upon reasonable prior notice, the Servicer shall provide to the
Administrator and its agents access to the Trust Student Loan Files and shall
permit the Administrator to examine and make copies of, and abstracts from, the
records and books of account of the Servicer relating to the Trust Student Loans
and shall permit the Administrator to undertake periodic site reviews of the
Servicer's operations relating to the servicing of the Trust Student Loans
(including on the premises of any agent of the Servicer). Reasonable access
shall be afforded to the Administrator without charge, but only upon reasonable
request and during the normal business hours at the respective offices of the
Servicer. Nothing in this Section shall affect the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Obligors and the failure of the Servicer to provide access to information as a
result of such obligation shall not constitute a breach of this Section.
Section 3.8 Servicer Expenses. The Servicer shall be required to pay all
expenses incurred by it in connection with its activities hereunder, including
fees and disbursements of independent accountants, taxes imposed on the Servicer
and expenses incurred in connection with distributions and reports to the
Administrator, provided, however, the Carryover Servicing Fee will be subject to
increase agreed to by the Administrator, the Owner Trustee and the Servicer to
the extent that a demonstrable and significant increase occurs in the costs
incurred by the Servicer in providing the services to be provided hereunder,
whether due to changes in applicable governmental regulations, Guarantor program
requirements or regulations or postal rates. Notwithstanding anything to the
contrary contained herein, the Servicer may, at its option, collect fees from
the Borrowers in connection with sending payment histories and amortization
schedules to Borrowers, faxing documents to Borrowers, providing credit
reference letters to Borrowers, providing a "speed pay" payment option to
Borrowers and for other similar optional services requested by a Borrower and
may retain such fees. The Servicer may also, at its option, collect fees from
Borrowers for returned check processing or other insufficient fund transactions
and may assess such fees from the Borrower's Trust Student Loan payment and
retain such fees.
Section 3.9 Appointment of Subservicer. A. The Servicer may at any time, upon
the written consent of the Administrator, appoint a subservicer to perform all
or any portion of its obligations as Servicer hereunder; provided, however, that
any applicable Rating Agency
-8-
Condition shall have been satisfied in connection therewith; provided, further,
that the Servicer shall remain obligated and be liable to the Issuer, the Owner
Trustee, the Indenture Administrator, the Indenture Trustee and the Noteholders
for the servicing and administering of the Trust Student Loans in accordance
with the provisions hereof without diminution of such obligation and liability
by virtue of the appointment of such subservicer and to the same extent and
under the same terms and conditions as if the Servicer alone were servicing and
administering the Trust Student Loans. The fees and expenses of the subservicer
shall be as agreed between the Servicer and its subservicer from time to time
and none of the Issuer, the Owner Trustee, the Indenture Administrator, the
Indenture Trustee or the Noteholders shall have any responsibility therefor.
With respect to satisfying the Rating Agency Condition referred to above, the
term "subservicer" shall be deemed not to include systems providers, systems
developers or systems maintenance contractors, collection agencies, credit
bureaus, lock box providers, mail service providers and other similar types of
service providers.
B. For the benefit of the Issuer, the Servicer shall cause any
Subservicer used by the Servicer (or by any Subservicer) for the benefit of the
Issuer to comply with the provisions of the reporting and compliance provisions
of this Agreement to the same extent as if such Subservicer were the Servicer,
and to provide the information required with respect to such Subservicer as is
required to be filed with the Commission. The Servicer shall be responsible for
obtaining from each Subservicer and delivering to the Issuer and the
Administrator any servicer compliance statement required to be delivered by such
Subservicer, any assessment of compliance and attestation required to be
delivered by such Subservicer, each as set forth in Article 7 of this Agreement
and any certification required to be delivered to the Person that will be
responsible for signing a Xxxxxxxx-Xxxxx Certification on behalf of the Issuer
as and when required to be delivered.
C. The Servicer shall promptly, upon request, provide to the Issuer
a written description (in form and substance satisfactory to the Issuer) of the
role and function of each Subcontractor utilized by the Servicer or any
Subservicer, specifying (i) the identity of each such Subcontractor, (ii) which
(if any) of such Subcontractors are "participating in the servicing function"
within the meaning of Item 1122 of Regulation AB, and (iii) which, if any,
elements of the Servicing Criteria will be addressed in assessments of
compliance provided by each Subcontractor identified in clause (ii) of this
paragraph.
D. As a condition to the utilization of any Subcontractor determined
to be "participating in the servicing function" within the meaning of Item 1122
of Regulation AB, the Servicer shall cause any such Subcontractor used by the
Servicer (or by any Subservicer) for the benefit of the Issuer to comply with
the reporting and compliance provisions of Section 7 of this Agreement to the
same extent as if such Subcontractor were the Servicer. The Servicer shall be
responsible for obtaining from each Subcontractor and delivering to the Issuer
and the Administrator any assessment of compliance and attestation required to
be delivered by such Subcontractor, each as set forth in Section 7 of this
Agreement, in each case as and when required to be delivered.
-9-
Section 3.10 Reports. With respect to Trust Student Loans, the Servicer shall
prepare reports and data and furnish the following information to the Issuer,
the Administrator, the Indenture Administrator and the Owner Trustee, unless
otherwise noted, at the specified times:
(a) The reports and data listed in Attachment C, at the times
indicated in the attachment;
(b) Within 30 days following the end of each calendar quarter, to
the Department, owner's request for interest and Special
Allowance Payments (ED 799);
(c) To credit bureaus selected by Servicer, credit bureau
reporting in accordance with the Higher Education Act;
(d) At any time the Owner Trustee, the Indenture Trustee or the
Indenture Administrator shall have reasonable grounds to
believe that such request would be necessary in connection
with its performance of its duties under related documents,
and within five (5) Business Days of receipt of a request
therefor, the Servicer shall furnish to the Owner Trustee, the
Indenture Trustee or the Indenture Administrator a list of all
Trust Student Loans (by borrower loan identification number,
type and outstanding principal balance) and any additional
information requested relating to the Trust Student Loans; and
(e) From time to time as may be reasonably requested, reports and
data providing additional information on the Trust Student
Loans.
Section 3.11 Securities and Exchange Commission Filings.
A. The Servicer shall reasonably cooperate with the Depositor in
connection with the Issuer satisfying the reporting requirements under the
Exchange Act. At the request of the Depositor, the Servicer shall prepare on
behalf of the Issuer any Forms 8-K and 10-K customary for similar securities as
required by the Exchange Act and the Rules and Regulations of the United States
Securities and Exchange Commission (the "SEC") thereunder, and the Servicer
shall sign and file (via the SEC's Electronic Data Gathering and Retrieval
System) such Forms on behalf of the Depositor. The Depositor hereby grants to
the Servicer a limited power of attorney to execute and file each such documents
on behalf of the Depositor. Such power of attorney shall continue until the
earlier of either (i) receipt by the Servicer from the Depositor of written
termination of such power of attorney and (ii) the termination of the Issuer.
Notwithstanding the foregoing, in the event that the SEC does not accept a
certification signed by the Depositor where the related Form 10-K is signed by
the Servicer on behalf of the Depositor, the Servicer should prepare such Form
10-K to be signed by the Depositor and the Depositor shall sign such form.
B. Each Form 8-K shall be filed by the Servicer within 15 days after
each Distribution Date. Prior to ______ year (or such earlier date as may be
required by the Exchange Act and the Rules and Regulations of the SEC), if
requested by the Depositor, the Servicer shall file a Form 10-K, in substance as
required by applicable law or applicable SEC staff's interpretations.
-10-
Such Form 10-K shall include as exhibits the Servicer's annual statement of
compliance described under Section 3.2(a) of the Administration Agreement and
the accountant's report described under Section 3.3 of the Administration
Agreement, in each case to the extent they have been timely delivered to the
Servicer. If they are not so timely delivered, the Servicer shall file an
amended Form 10-K including such documents as exhibits reasonably promptly after
they are delivered to the Servicer. The Servicer shall have no liability with
respect to any failure to properly prepare or file such periodic reports
resulting from or relating to the Servicer's inability or failure to obtain any
information not resulting from its own negligence, willful misconduct or bad
faith.
C. The Servicer shall sign a certification (in the form attached
hereto as Attachment D or in such other form as may be appropriate or necessary
and as may be agreed upon by the Servicer and the Depositor as a result of
changes promulgated by the SEC in the Certification required to be filed with
the Form 10-K, which are applicable to the Issuer), for the benefit of the
Depositor and its officers, directors and Affiliates by ______ of each year (or
if not a Business Day, the immediately preceding Business Day). In addition, (i)
the Servicer shall indemnify and hold harmless the Depositor and its officers,
directors and Affiliates from and against any losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of or based upon a breach of the
Servicer's obligations under this Section 3.11C or the Servicer's negligence,
bad faith or willful misconduct in connection therewith, and (ii) the Servicer
shall indemnify and hold harmless the Depositor and its officers, directors and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other costs
and expenses arising out of or based upon a breach of the Servicer's obligations
under this Section 3.11C or the negligence, bad faith or willful misconduct of
the Servicer in connection therewith. If the indemnification provided for herein
is unavailable or insufficient to hold harmless the Depositor, then the Servicer
agrees that it shall contribute to the amount paid or payable to the Depositor
as a result of the losses, claims, damages or liabilities of the Depositor in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Servicer on the other in connection with a breach of the
Servicer's obligations under this Section 3.11C or the Servicer's negligence,
bad faith or willful misconduct in connection therewith.
D. Upon any filing with the SEC pursuant to this Section 3.11, the
Servicer shall promptly deliver to the Depositor a copy of any such executed
report, statement or information.
Section 3.12 Covenants and Agreements of the Issuer, Administrator, the Eligible
Lender Trustee and Servicer. The Issuer, the Administrator, the Servicer, the
Eligible Lender Trustee and the Owner Trustee each agree that:
A. Any payment and any communications received at any time by the
Issuer and the Administrator with respect to a Trust Student Loan shall be
immediately transmitted to the Servicer. Such communications shall include, but
not be limited to, requests or notices of loan cancellation, notices of borrower
disqualification, letters, changes in address or status, notices of death or
disability, notices of bankruptcy and forms requesting deferment of repayment or
forbearance.
-11-
B. The Servicer may change any part or all of its equipment, data
processing programs and any procedures and forms in connection with the services
performed hereunder so long as the Servicer continues to service the Trust
Student Loans in conformance with the requirements herein. The Servicer shall
not make any material change in its servicing system and operations with respect
to the Trust Student Loans without the prior written consent of the
Administrator, which consent will not be unreasonably withheld. Each written
request for consent by the Servicer shall be acted upon promptly by the
Administrator. Anything in this paragraph B to the contrary notwithstanding, the
Servicer will not be required to request the consent of the Administrator with
respect to any changes in the Servicer's servicing system and operations which
the Servicer reasonably determines are required due to changes in the Higher
Education Act or Guarantor program requirements.
C. The Eligible Lender Trustee will furnish the Servicer with a copy
of any and all Guarantee Agreements relating to the Trust Student Loans serviced
hereunder.
D. The Servicer may and, at the direction of the Administrator,
shall include marketing or informational material generally provided to
borrowers of loans owned by SLC with communications sent to a Borrower.
E. The Servicer shall, if requested by a Borrower of a Trust Student
Loan, arrange for the sale of such Trust Student Loan to another lender which
holds another student loan of such Borrower at a price not less than the
Purchase Amount.
F. The Servicer shall arrange for the sale of a Trust Student Loan
to SLC upon receipt by the Servicer of an executed consolidation loan
application from the Borrower of the related Trust Student Loan or a request
from the Borrower to add additional loans to such Trust Student Loan as
permitted under the Higher Education Act. The sale price for such Trust Student
Loan shall equal the Purchase Amount.
Section 3.13 Special Programs. To the extent that any special program is not
required by the Higher Education Act and is in effect for the Trust Student
Loans on any Distribution Date after the ________ Distribution Date when the
Outstanding Amount of the Notes exceeds the Pool Balance plus the Reserve
Account Balance as of the end of the related Collection Period, such special
program shall be applied to the Trust Student Loans only if and to the extent
the Issuer receives payment from SLC in an amount equal to the interest that
would have otherwise been paid on such Trust Student Loans in the absence of
such special program.
Section 3.14 Financial Statements. The Servicer shall provide to the Indenture
Trustee, Indenture Administrator and the Administrator at any time that the
Servicer is not an Affiliate of the Administrator (a) as soon as possible, and
in no event more than 120 days after the end of each fiscal year of the
Servicer, audited financials as at the end of and for such year and (b) as soon
as possible, and in no event more than 30 days after the end of each quarterly
accounting period of the Servicer, unaudited financials as at the end of and for
such period.
Section 3.15 Insurance. The Servicer shall maintain or cause to be maintained
insurance with respect to its property and business against such casualties and
contingencies and of such types and in such amounts as is customary in the case
of institutions of the same type and size.
-12-
Section 3.16 Administration Agreement. The Servicer agrees to perform all duties
required of the Servicer under the Administration Agreement using that degree of
skill and attention that the Servicer exercises with respect to its comparable
business activities.
Section 3.17 Lender Identification Number. The Owner Trustee may permit trusts,
other than the Issuer, established by the Depositor to securitize student loans,
to use the Department lender identification number applicable to the Issuer if
the servicing agreements with respect to such other trusts include provisions
substantially similar to this paragraph. In such event, the Servicer may claim
and collect Interest Subsidy Payments and Special Allowance Payments with
respect to Trust Student Loans and student loans in such other trusts using such
common lender identification number. Notwithstanding anything herein or in the
Basic Documents to the contrary, any amounts assessed against payments
(including, but not limited to, Interest Subsidy Payments and Special Allowance
Payments) due from the Department to any such other trust using such common
lender identification number as a result of amounts owing to the Department from
the Issuer will be deemed for all purposes hereof and of the Basic Documents
(including for purposes of determining amounts paid by the Department with
respect to the student loans in the Trust and such other trust) to have been
assessed against the Issuer and shall be deducted by the Administrator or the
Servicer and paid to such other trust from any collections made by them which
would otherwise have been payable to the Collection Account for the Issuer. Any
amounts assessed against payments due from the Department to the Issuer as a
result of amounts owing to the Department from such other trust using such
common lender identification number will be deemed to have been assessed against
such other trust and will be deducted by the Administrator or the Servicer from
any collections made by them which would otherwise be payable to the collection
account for such other trust and paid to the Issuer.
Article IV
Section 4.1 Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Trust Student Loans and appointing the Servicer as servicer hereunder. The
representations speak as of the execution and delivery of this Agreement and as
of the Closing Date, but shall survive the sale, transfer and assignment of the
Trust Student Loans to the Owner Trustee on behalf of the Issuer and the pledge
thereof to the Indenture Trustee and the Indenture Administrator pursuant to the
Indenture.
A. Organization and Good Standing. The Servicer is duly incorporated
and validly existing as a corporation under the laws of the State of Delaware
and in good standing under the laws of the State of Delaware, with the power and
authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted, and had at all
relevant times, and has, the power, authority and legal right to service the
Trust Student Loans and to hold the Trust Student Loan Files as custodian.
B. Due Qualification. The Servicer is duly qualified to do business
and has obtained all necessary licenses and approvals in all jurisdictions in
which the ownership or lease of property or the conduct of its business
(including the servicing of the Trust Student Loans as required by this
Agreement) shall require such qualifications.
-13-
C. Power and Authority. The Servicer has the power and authority to
execute and deliver this Agreement and to carry out its terms; and the
execution, delivery and performance of this Agreement have been duly authorized
by the Servicer by all necessary action. No registration with or approval of any
governmental agency is required for the due execution and delivery by, and
enforceability against, the Servicer of this Agreement.
D. Binding Obligation. This Agreement constitutes a legal, valid and
binding obligation of the Servicer enforceable in accordance with its terms
subject to bankruptcy, insolvency and other similar laws affecting creditors'
rights generally and subject to equitable principles.
E. No Violation. The consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms hereof will not conflict
with, result in any breach of any of the terms and provisions of, nor constitute
(with or without notice or lapse of time or both) a default under, the bylaws of
the Servicer, or any indenture, agreement or other instrument to which the
Servicer is a party or by which it shall be bound; nor result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any
such indenture, agreement or other instrument (other than this Agreement and the
other Basic Documents); nor violate any law or, to the best of the Servicer's
knowledge, any order, rule or regulation applicable to the Servicer of any court
or of any Federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Servicer or its
properties.
F. No Proceedings. There are no proceedings or investigations
pending, or, to the Servicer's best knowledge, threatened, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Servicer or its properties: (i) asserting the
invalidity of this Agreement or any of the other Basic Documents to which the
Servicer is a party, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement or any of the other Basic Documents
to which the Servicer is a party, (iii) seeking any determination or ruling that
could reasonably be expected to have a material and adverse effect on the
performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement or any of the other Basic Documents to which
the Servicer is a party, or (iv) relating to the Servicer and which might
adversely affect the Federal or state income tax attributes of the Notes.
Section 4.2 Indemnities of Servicer. The Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement.
The Servicer shall pay for any loss, liability, claim or expense
(including, without limitation, costs and expenses of litigation and of
investigation counsel fees, damages, judgments and amounts paid in settlement)
that may be imposed on, incurred by or asserted against the Issuer, the Owner
Trustee (in its capacity as such or individually) or the Eligible Lender Trustee
(in its capacity as such or individually) by the Department pursuant to the
Higher Education Act, to the extent that such loss, liability or expense arose
out of, or was imposed upon the Issuer, the Owner Trustee (in its capacity as
such or individually) or the Eligible Lender Trustee (in its capacity as such or
individually) through, the negligence, willful misfeasance or bad faith of the
Servicer in the performance of its obligations and duties under this Agreement
or by reason of the reckless disregard of its obligations and duties under this
Agreement, where the final
-14-
determination that any such loss, liability or expense arose out of, or was
imposed upon the Issuer, the Owner Trustee (in its capacity as such or
individually) or the Eligible Lender Trustee (in its capacity as such or
individually) through, any such negligence, willful misfeasance, bad faith or
recklessness on the part of the Servicer is established by a court of law, by an
arbitrator or by way of settlement agreed to by the Servicer. Notwithstanding
the foregoing, if the Servicer is rendered unable, in whole or in part, by a
force outside the control of the parties hereto (including acts of God, acts of
war, fires, earthquakes, hurricanes, floods and other disasters) to satisfy its
obligations under this Agreement, the Servicer shall not be deemed to have
breached any such obligation upon delivery of written notice of such event to
the other parties hereto, for so long as the Servicer remains unable to perform
such obligation as a result of such event.
For purposes of this Section, in the event of the termination of the
rights and obligations of SLC (or any successor thereto pursuant to Section 4.3)
as Servicer pursuant to Section 5.1, or a resignation by such Servicer pursuant
to this Agreement, such Servicer shall be deemed to be the Servicer pending
appointment of a successor servicer pursuant to Section 5.2.
Liability of the Servicer under this Section shall survive the
resignation or removal of the Owner Trustee, the Indenture Trustee, the
Indenture Administrator or the Eligible Lender Trustee or the termination of
this Agreement. If the Servicer shall have made any payments pursuant to this
Section and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person shall promptly repay such
amounts to the Servicer, without interest.
Section 4.3 Merger or Consolidation of, or Assumption of the Obligations of,
Servicer. The Servicer hereby agrees that, upon (a) any merger or consolidation
of the Servicer into another Person, (b) any merger or consolidation to which
the Servicer shall be a party resulting in the creation of another Person or (c)
any Person succeeding to the properties and assets of the Servicer substantially
as a whole, the Servicer shall (i) cause such Person (if other than the
Servicer) to execute an agreement which states expressly that such Person
assumes every obligation of the Servicer hereunder, (ii) deliver to the Owner
Trustee, the Indenture Trustee or the Indenture Administrator an Officers'
Certificate and an Opinion of Counsel each stating that such consolidation,
merger or succession and such agreement of assumption comply with this Section
and that all conditions precedent provided for in this Agreement relating to
such transaction have been complied with, (iii) cause the Rating Agency
Condition to have been satisfied with respect to such transaction and (iv) cure
any existing Servicer Default or any continuing event which, after notice or
lapse of time or both, would become a Servicer Default. Upon compliance with the
foregoing requirements, such Person shall be the successor servicer under this
Agreement without further act on the part of any of the parties to this
Agreement.
Section 4.4 Limitation on Liability of Servicer. The Servicer shall not be under
any liability to the Issuer, the Noteholders, the Administrator, the Eligible
Lender Trustee, the Owner Trustee, the Indenture Administrator or the Indenture
Trustee except as provided under this Agreement, for any action taken or for
refraining from the taking of any action pursuant to this Agreement, for errors
in judgment, for any incorrect or incomplete information provided by schools,
Borrowers, Guarantors and the Department, for the failure of any party to this
Servicing Agreement or any other Basic Document to comply with its respective
obligations hereunder or under any other Basic Document or for any losses
attributable to the insolvency of any
-15-
Guarantor; provided, however, that this provision shall not protect the Servicer
against its obligation to purchase Student Loans from the Trust pursuant to
Section 3.5 hereof or to pay to the Trust amounts required pursuant to Section
3.5 hereof or against any liability that would otherwise be imposed by reason of
willful misfeasance, bad faith or negligence in the performance of duties or by
reason of reckless disregard of obligations and duties under this Agreement. The
Servicer may rely in good faith on any document of any kind prima facie properly
executed and submitted by any person respecting any matters arising under this
Agreement.
Except as provided in this Agreement, the Servicer shall not be under any
obligation to appear in, prosecute or defend any legal action where it is not
named as a party; provided, however, that the Servicer may undertake any
reasonable action that it may deem necessary or desirable in respect of this
Agreement and the other Basic Documents and the rights and duties of the parties
to this Agreement and the other Basic Documents and the interests of the
Noteholders. To the extent that the Servicer is required to appear in or is made
a defendant in any legal action or other proceeding relating to the servicing of
the Trust Student Loans, the Issuer shall indemnify and hold the Servicer
harmless from all cost, liability or expense of the Servicer not arising out of
or relating to the failure of the Servicer to comply with the terms of this
Agreement.
Section 4.5 SLC Not to Resign as Servicer. Subject to the provisions of Section
4.3, SLC shall not resign from the obligations and duties hereby imposed on it
as Servicer under this Agreement except upon determination that the performance
of its duties under this Agreement are no longer permissible under applicable
law. Notice of any such determination permitting the resignation of SLC shall be
communicated to the Owner Trustee, the Indenture Trustee and the Indenture
Administrator at the earliest practicable time (and, if such communication is
not in writing, shall be confirmed in writing at the earliest practicable time)
and any such determination shall be evidenced by an Opinion of Counsel to such
effect delivered to the Owner Trustee, the Indenture Trustee and the Indenture
Administrator concurrently with or promptly after such notice. No such
resignation shall become effective until the Indenture Administrator or a
successor servicer shall have assumed the responsibilities and obligations of
SLC in accordance with Section 5.2.
Article V
Section 5.1 Servicer Default. If any one of the following events (a
"Servicer Default") shall occur and be continuing:
(i) any failure by the Servicer (i) to deliver to the Indenture
Trustee or the Indenture Administrator, as the case may be,
for deposit in the Trust Accounts any payment required by the
Basic Documents to which the Servicer is a signatory or (ii)
in the event that daily deposits into the Collection Account
are not required, to deliver to the Administrator any payment
required by the Basic Documents, which failure in case of
either clause (i) or (ii) continues unremedied for five
Business Days after written notice of such failure is received
by the Servicer from the Owner Trustee, the Indenture Trustee,
the Indenture Administrator or the Administrator or
-16-
five Business Days after discovery of such failure by an
officer of the Servicer; or
(ii) any failure by the Servicer duly to observe or to perform in
any material respect any other term, covenant or agreement of
the Servicer set forth in this Agreement or any other Basic
Document to which the Servicer is a signatory, which failure
shall (i) materially and adversely affect the rights of the
Indenture Trustee, on behalf of the Noteholders, or the
Noteholders and (ii) continues unremedied for a period of 60
days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given (A)
to the Servicer by the Indenture Trustee, the Indenture
Administrator, the Eligible Lender Trustee or the
Administrator or (B) to the Servicer, and to the Indenture
Trustee, the Indenture Administrator and the Eligible Lender
Trustee by the Noteholders representing at least a majority of
the Outstanding Amount of the Notes; provided, however, that
any breach of Sections 3.1, 3.2, 3.3 or 3.4 shall not be
deemed a Servicer Default so long as the Servicer is in
compliance with its repurchase and reimbursement obligations
under Section 3.5; or
(iii) an Insolvency Event occurs with respect to the Servicer; or
(iv) any failure by the Servicer to comply with any requirements
under the Higher Education Act resulting in a loss of its
eligibility as a third-party servicer; or
(v) any failure by the Servicer, any Subservicer or any
Subcontractor to deliver any information, report,
certification or accountants' letter when and as required
under Article VII (including, without limitation, any failure
by the Servicer to identify any Subcontractor "participating
in the servicing function" within the meaning of Item 1122 of
Regulation AB), which continues unremedied for fifteen (15)
calendar days after the date on which such information,
report, certification or accountants' letter was required to
be delivered,
then, and in each and every case, so long as the Servicer Default shall not have
been remedied, either the Indenture Trustee or the Indenture Administrator, or
the Noteholders of Notes evidencing at least a majority of the Outstanding
Amount of the Notes, by notice then given in writing to the Servicer (and to the
Indenture Trustee, the Indenture Administrator and the Owner Trustee if given by
the Noteholders) may terminate all the rights and obligations (other than the
obligations set forth in Section 3.5 and Section 4.2) of the Servicer under this
Agreement. As of the effective date of termination of the Servicer, all
authority and power of the Servicer under this Agreement, whether with respect
to the Notes or the Trust Student Loans or otherwise, shall, without further
action, pass to and be vested in the Indenture Administrator or such successor
servicer as may be appointed under Section 5.2. The predecessor Servicer shall
cooperate with the successor servicer, the Indenture Administrator and the Owner
Trustee in effecting the termination of the responsibilities and rights of the
predecessor Servicer under this Agreement, including the transfer to the
successor servicer for administration by it of all cash amounts that
-17-
shall at the time be held by the predecessor Servicer for deposit, or shall
thereafter be received by it with respect to a Trust Student Loan. All
reasonable costs and expenses, including, without limitation, any costs or
expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the successor servicer to correct any errors or insufficiencies in the
servicing data or otherwise to enable the successor servicer to service the
Trust Student Loans properly and effectively, costs reasonably allocable to
specific employees and overhead, legal fees and expenses, accounting and
financial consulting fees and expenses, costs or expenses associated with the
transfer of all servicing files and costs of amending the Agreement, if
necessary, incurred in connection with transferring the Trust Student Loan Files
to the successor servicer and amending this Agreement and any other Basic
Documents to reflect such succession as Servicer pursuant to this Section shall
be paid by the predecessor Servicer (other than the Indenture Administrator
acting as the Servicer under this Section 5.1) upon presentation of reasonable
documentation of such costs and expenses. If the predecessor Servicer (other
than the Indenture Administrator) does not pay such reimbursement within thirty
(30) days of its receipt of an invoice therefor, such reimbursement shall be an
expense of the Issuer and the successor servicer shall be entitled to receive
such reimbursement from amounts on deposit in the Collection Account. Upon
receipt of notice of the occurrence of a Servicer Default, the Owner Trustee
shall give notice thereof to the Rating Agencies.
Section 5.2 Appointment of Successor.
A. Upon receipt by the Servicer of notice of termination pursuant to
Section 5.1, or the resignation by the Servicer in accordance with the terms of
this Agreement, the predecessor Servicer shall continue to perform its functions
as Servicer under this Agreement, in the case of termination, only until the
date specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the Indenture Administrator or a successor servicer shall
have assumed the responsibilities and duties of SLC. In the event of the
termination hereunder of the Servicer, the Issuer shall appoint a successor
servicer acceptable to the Indenture Administrator, and the successor servicer
shall accept its appointment by a written assumption in form acceptable to the
Indenture Administrator. In the event that a successor servicer has not been
appointed at the time when the predecessor Servicer has ceased to act as
Servicer in accordance with this Section, the Indenture Administrator without
further action shall automatically be appointed the successor servicer and the
Indenture Administrator shall be entitled to the Servicing Fee and any Carryover
Servicing Fees. Notwithstanding the above, the Indenture Administrator shall, if
it shall be unwilling or legally unable so to act, appoint or petition a court
of competent jurisdiction to appoint any established institution whose regular
business shall include the servicing of student loans, as the successor servicer
under this Agreement; provided, however, that such right to appoint or to
petition for the appointment of any such successor servicer shall in no event
relieve the Indenture Administrator from any obligations otherwise imposed on it
under the Basic Documents until such successor has in fact assumed such
appointment.
B. Upon appointment, the successor to the Servicer (including the
Indenture Administrator acting as successor to the Servicer) shall be the
successor in all respects to the predecessor Servicer and shall be subject to
all the responsibilities, duties and liabilities placed on the predecessor
Servicer that arise thereafter or are related thereto and shall be entitled to
an
-18-
amount agreed to by such successor servicer (which shall not exceed the
Servicing Fee unless the Rating Agency Condition is satisfied with respect to
such compensation arrangements) and all the rights granted to the predecessor
Servicer by the terms and provisions of this Agreement; provided, that the
successor servicer shall assume no liability or responsibility for any acts,
representations, obligations and covenants of any predecessor Servicer prior to
the date that the successor servicer becomes Servicer hereunder.
C. Notwithstanding the foregoing or anything to the contrary herein
or in the other Basic Documents, the Indenture Administrator, to the extent it
is acting as successor servicer pursuant hereto and thereto, shall be entitled
to resign to the extent a qualified successor servicer has been appointed and
has assumed all the obligations of the Servicer in accordance with the terms of
this Agreement and the other Basic Documents.
Section 5.3 Notification to Noteholders. Upon any termination of, or appointment
of a successor to, the Servicer pursuant to this Article V, the Indenture
Administrator shall give prompt written notice thereof to Noteholders and the
Rating Agencies (which, in the case of any such appointment of a successor,
shall consist of prior written notice thereof to the Rating Agencies).
Section 5.4 Waiver of Past Defaults. The Indenture Trustee acting at the
direction of Noteholders of Notes evidencing at least a majority of the
Outstanding Amount of the Notes may, on behalf of all Noteholders, waive in
writing any default by the Servicer in the performance of its obligations
hereunder and any consequences thereof, except a default in making any required
deposits to or payments from any of the Trust Accounts (or giving instructions
regarding the same) in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer Default
arising therefrom shall be deemed to have been remedied for every purpose of
this Agreement and the Administration Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereto.
Article VI
Section 6.1 Amendment.
A. This Agreement may be amended by the Servicer, the Issuer, the
Administrator or the Owner Trustee, without the consent of any of the
Noteholders, to comply with any change in any applicable federal or state law,
to cure any ambiguity, to correct or supplement any provisions in this Agreement
or for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement; provided, however, that
such action shall not, as evidenced by an Opinion of Counsel delivered to the
Owner Trustee, adversely affect in any material respect the interests of any
Noteholder.
B. This Agreement may also be amended from time to time by the
Servicer, the Issuer, the Administrator and the Owner Trustee, with the consent
of the Noteholders of Notes evidencing at least a majority of the Outstanding
Amount of the Notes, for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders; provided, however, that
-19-
no such amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments with respect to Trust
Student Loans or distributions that shall be required to be made for the benefit
of the Noteholders or (b) reduce the aforesaid percentage of the Outstanding
Amount of the Notes, the Noteholders of which are required to consent to any
such amendment, without the consent of all outstanding Noteholders.
It shall not be necessary for the consent of Noteholders pursuant to
this clause B, to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof.
Promptly after the execution of any amendment to this Agreement (or,
in the case of the Rating Agencies, fifteen days prior thereto), the Owner
Trustee shall furnish written notification of the substance of such amendment to
each of the Rating Agencies.
Prior to the execution of any amendment to this Agreement, the Owner
Trustee, the Indenture Administrator and the Indenture Trustee shall be entitled
to receive and rely upon an Opinion of Counsel stating that the execution of
such amendment is authorized or permitted by this Agreement. The Owner Trustee,
the Indenture Administrator and the Indenture Trustee may, but shall not be
obligated to, execute and deliver such amendment which affects its rights,
powers, duties or immunities hereunder.
Section 6.2 Notices. All notices hereunder shall be given by United States
certified or registered mail, by facsimile or by other telecommunication device
capable of creating written record of such notice and its receipt. Notices
hereunder shall be effective when received and shall be addressed to the
respective parties hereto at the addresses set forth below, or at such other
address as shall be designated by any party hereto in a written notice to each
other party pursuant to this section.
If to the Servicer or Administrator, to:
The Student Loan Corporation
[Address]
Attn: _______________________
If to the Issuer, to:
SLC Student Loan Trust 20__-_
c/o _________________________
[Address]
Attn: ______________________
Section 6.3 Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original, and such counterparts shall
constitute one and the same instrument.
-20-
Section 6.4 Entire Agreement; Severability. This Agreement constitutes the
entire agreement among the Issuer, the Administrator, the Owner Trustee and the
Servicer. All prior representations, statements, negotiations and undertakings
with regard to the subject matter hereof are superseded hereby.
If any term or provision of this Agreement or the application
thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remaining terms and provisions of this Agreement, or the
application of such terms or provisions to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each term and provision of this Agreement shall be valid and
enforced to the fullest extent permitted by law.
Section 6.5 Governing Law. The terms of this Agreement shall be subject to all
applicable provisions of the Higher Education Act and shall be construed in
accordance with and governed by the laws of the State of New York without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties, hereunder shall be determined in accordance with such
laws.
Section 6.6 Relationship of Parties. The Servicer is an independent contractor
and, except for the services which it agrees to perform hereunder, the Servicer
does not hold itself out as an agent of any other party hereto. Nothing herein
contained shall create or imply an agency relationship among Servicer and any
other party hereto, nor shall this Agreement be deemed to constitute a joint
venture or partnership between the parties.
Section 6.7 Captions. The captions used herein are for the convenience of
reference only and not part of this Agreement, and shall in no way be deemed to
define, limit, describe or modify the meanings of any provision of this
Agreement.
Section 6.8 Nonliability of Directors, Officers and Employees of Servicer, the
Owner Trustee, the Indenture Administrator, the Indenture Trustee and the
Administrator. No member of the board of directors or any officer, employee or
agent of the Servicer, the Administrator, the Owner Trustee, the Indenture
Administrator or the Indenture Trustee (or any Affiliate of any such party)
shall be personally liable for any obligation incurred under this Agreement.
Section 6.9 Assignment. This Agreement may not be assigned by the Servicer
except as permitted under Sections 4.3, 4.5 and 5.2 hereof. This Agreement may
not be assigned by the Administrator except as permitted under Sections 4.3 and
4.6 of the Administration Agreement.
Section 6.10 Limitation of Liability of Owner Trustee, Indenture Administrator
and Indenture Trustee.
A. Notwithstanding anything contained herein to the contrary, this
Agreement has been signed by ________________________, not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall ________________________ in its individual capacity or, except as
expressly provided in the Trust Agreement, as Owner Trustee have any liability
for the representations, warranties, covenants, agreements or other obligations
of the Issuer or the Owner Trustee hereunder or in any of the certificates,
notices or agreements
-21-
delivered pursuant hereto as to all of which recourse shall be had solely to the
assets of the Issuer.
B. Notwithstanding anything contained herein to the contrary, this
Agreement has been signed by ______________, not in its individual capacity but
solely in its capacity as Indenture Administrator of the Issuer and in no event
shall ______________ in its individual capacity or, except as expressly provided
in the Indenture, as Indenture Administrator have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto as to all of which recourse shall be had solely to the assets of
the Issuer.
C. Notwithstanding anything contained herein to the contrary, this
Agreement has been signed by ______________________, not in its individual
capacity but solely in its capacity as Indenture Trustee of the Issuer and in no
event shall ________________ in its individual capacity or, except as expressly
provided in the Indenture, as Indenture Trustee have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto as to all of which recourse shall be had solely to the assets of
the Issuer.
Article VII
Section 7.1 Intent of the Parties; Reasonableness. The Servicer and the
Administrator, on behalf of the Issuer, acknowledge and agree that the purpose
of Article VII of this Agreement is to facilitate compliance by the Issuer with
the provisions of Regulation AB and related rules and regulations of the
Commission. Neither the Servicer nor the Administrator shall exercise its right
to request delivery of information or other performance under these provisions
other than in good faith, or for purposes other than compliance with the
Securities Act, the Exchange Act and the rules and regulations of the Commission
thereunder (or the provision in a private offering of disclosure comparable to
that required under the Securities Act). The Servicer acknowledges that
interpretations of the requirements of Regulation AB may change over time,
whether due to interpretive guidance provided by the Commission or its staff,
consensus among participants in the asset-backed securities markets, advice of
counsel, or otherwise, and agrees to comply with requests made by the
Administrator, on behalf of the Issuer, in good faith for delivery of
information under these provisions on the basis of evolving interpretations of
Regulation AB. In connection therewith, the Servicer shall cooperate fully with
the Administrator, on behalf of the Issuer, to deliver to the Administrator, on
behalf of the Issuer (including any of its assignees or designees), any and all
statements, reports, certifications, records and any other information necessary
in the good faith determination of the Administrator, on behalf of the Issuer,
to permit the Administrator, on behalf of the Issuer, to comply with the
provisions of Regulation AB, together with such disclosures relating to the
Servicer and/or any Subservicer or the servicing of the Trust Student Loans,
reasonably believed by the Administrator, on behalf of the Issuer, to be
necessary in order to effect such compliance.
The Administrator, on behalf of the Issuer, (including any of its
assignees or designees) shall cooperate with the Servicer by providing timely
notice of requests for
-22-
information under these provisions and by reasonably limiting such requests to
information required, in the Issuer's reasonable judgment, to comply with
Regulation AB.
Section 7.2 Reporting Requirements.
A. If so requested by the Administrator, acting on behalf of the
Issuer, for the purpose of satisfying its reporting obligation under the
Exchange Act with respect to any class of Notes, the Servicer shall (or shall
cause each Subservicer to) (i) notify the Issuer and the Administrator in
writing of any material litigation or governmental proceedings pending against
the Servicer and any Subservicer and (ii) provide to the Issuer a description of
such proceedings, affiliations or relationships.
B. As a condition to the succession to Servicer or any Subservicer
by any Person (i) into which the Servicer or such Subservicer may be merged or
consolidated, or (ii) which may be appointed as a successor to the Servicer or
any Subservicer, the Servicer shall provide to the Issuer and the Administrator,
at least 10 Business Days prior to the effective date of such succession or
appointment, (x) written notice to the Issuer of such succession or appointment
and (y) in writing and in form and substance reasonably satisfactory to the
Administrator, acting on behalf of the Issuer, all information reasonably
requested by the Administrator, acting on behalf of the Issuer, in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to
any class of Notes.
C. In addition to such information as the Servicer is obligated to
provide pursuant to other provisions of this Agreement, if so requested by the
Administrator, acting on behalf of the Issuer, the Servicer and any Subservicer
shall provide such information regarding the performance or servicing of the
Trust Student Loans as is reasonably required to facilitate preparation of
quarterly distribution reports in accordance with Item 1121 of Regulation AB.
Section 7.3 Servicer Compliance Statement. On or before ______ of each calendar
year, commencing in ____, the Servicer shall deliver to the Issuer and the
Administrator a statement of compliance addressed to the Issuer and signed by an
authorized officer of the Servicer, to the effect that (i) a review of the
Servicer's activities during the immediately preceding calendar year (or
applicable portion thereof) and of its performance under this Agreement during
such period has been made under such officer's supervision, and (ii) to the best
of such officer's knowledge, based on such review, the Servicer has fulfilled
all of its obligations under this Agreement in all material respects throughout
such calendar year (or applicable portion thereof) or, if there has been a
failure to fulfill any such obligation in any material respect, specifically
identifying each such failure known to such officer and the nature and the
status thereof and shall facilitate the delivery of any required statement of
compliance by each Subservicer.Section 7.4 Report on Assessment of Compliance
and Attestation.
A. On or before ______ of each calendar year, commencing in ____,
the Servicer shall:
(i) deliver to the Issuer a report (in form and substance
reasonably satisfactory to the Issuer) regarding the
Servicer's assessment of compliance with the Servicing
Criteria during the immediately preceding calendar year, as
required under Rules 13a-18 and 15d-18 of the Exchange
-23-
Act and Item 1122 of Regulation AB. Such report shall be
addressed to the Issuer and signed by an authorized officer of
the Servicer, and shall address each of the Servicing Criteria
specified on a certification substantially in the form of
Attachment E attached to this Agreement;
(ii) deliver to the Issuer and the Administrator a report of a
registered public accounting firm reasonably acceptable to the
Administrator, acting on behalf of the Issuer, that attests
to, and reports on, the assessment of compliance made by the
Servicer and delivered pursuant to the preceding paragraph.
Such attestation shall be in accordance with Rules 1-02(a)(3)
and 2-02(g) of Regulation S-X under the Securities Act and the
Exchange Act;
(iii) cause each Subservicer and Subcontractor, determined by the
Servicer to be "participating in the servicing function"
within the meaning of Item 1122 of Regulation AB, to deliver
to the Administrator, acting on behalf of the Issuer, an
assessment of compliance and accountants' attestation as and
when provided in paragraphs (1) and (2) of this Section; and
(iv) if requested by the Administrator, acting on behalf of the
Issuer, not later than ________ of the calendar year in which
such certification is to be delivered, deliver to the Issuer,
the Administrator and any other Person that will be
responsible for signing the Xxxxxxxx-Xxxxx Certification on
behalf of an Issuer with respect to this securitization
transaction the Annual Certification in the form attached
hereto as Attachment E.
The Servicer acknowledges that the parties identified in clause
A(iv) above may rely on any certification provided by the Servicer or any
Subservicer pursuant to such clause in signing a Xxxxxxxx-Xxxxx Certification
and filing such with the Commission. The Issuer will not request delivery of the
Annual Certification under clause A(iv) above unless the Depositor is required
under the Exchange Act to file an annual report on Form 10-K with respect to an
Issuing Entity whose asset pool includes the Trust Student Loans.
B. Each assessment of compliance provided by a Subservicer shall
address each of the Servicing Criteria specified on a certification to be
delivered to the Servicer, the Issuer, and the Administrator on or prior to the
date of such appointment. An assessment of compliance provided by a
Subcontractor need not address any elements of the Servicing Criteria other than
those specified by the Servicer and the Issuer on the date of such appointment.
[SIGNATURE PAGE FOLLOWS]
-24-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed on their behalf by their duly authorized officers as of the
date first above written.
THE STUDENT LOAN CORPORATION,
as Servicer and Administrator
By:__________________________________
Name:
Title:
SLC STUDENT LOAN TRUST 200__-__
By: ________________________,
not in its individual capacity
but solely as Owner Trustee
By:__________________________________
Name:
Title:
AGREED TO AND ACCEPTED BY:
_______________________________,
not in its individual capacity but solely
as Indenture Trustee
By:__________________________________
Name:
Title:
_______________________,
not in its individual capacity but solely
as Indenture Administrator
By:__________________________________
Name:
Title:
-1-
ATTACHMENT A
SCHEDULE OF FEES
The Servicer will receive a Primary Servicing Fee and a Carryover
Servicing Fee (together, the "Servicing Fee"). The "Primary Servicing Fee" for
any month is an amount equal to the sum _____ of ____ of the outstanding
principal amount of the Trust Student Loans as of the last day of the preceding
calendar month, plus any such amounts from prior Monthly Servicing Payment Dates
that remain unpaid. The Primary Servicing Fee will be payable out of Available
Funds and amounts on deposit in the Reserve Account on the ____ day of each
month (or, if any such date is not a Business Day, on the next succeeding
Business Day), commencing on ______,200__ (each, a "Monthly Servicing Payment
Date"). The "Carryover Servicing Fee" will be payable out of Available Funds in
accordance with Section 2.8(h) of the Administration Agreement on each
Distribution Date and is the sum of (a) the amount of certain increases in the
costs incurred by the Servicer which are agreed to pursuant to Section 3.8 of
the Servicing Agreement and (b) any amounts described in (a) above that remain
unpaid from prior Distribution Dates plus interest on such amounts for the
period from the Distribution Date on which such amounts become due to the date
such amounts are paid in full at a rate per annum for each Interest Period (as
defined below) equal to [____]-Month LIBOR as determined as of the related
Distribution Date.
"Interest Period" shall mean the period from each Distribution Date
through the day before the next Distribution Date. The Carryover Servicing Fee
will be payable to the Servicer on each succeeding Distribution Date out of
Available Funds after payment on such Distribution Date of all senior amounts
payable prior to clause (h) of Section 2.8 of the Administration Agreement. On
the ___ Monthly Servicing Payment Date, the Servicer shall receive a pro rata
portion of the Primary Servicing Fee for the number of days in _________ from,
and including, the Closing Date.
A-1
ATTACHMENT B
LOCATIONS
_____________________________
[Address]
[Phone]
_____________________________
[Address]
[Phone]
X-0
XXXXXXXXXX X
XXXXXXX
X-0
XXXXXXXXXX X
FORM OF CERTIFICATION TO BE
PROVIDED TO DEPOSITOR BY SERVICER
CERTIFICATION
SLC Student Loan Trust 200__-__ (the "Issuer")
Student Loan Asset-Backed Notes (the "Notes")
I, _____________, the Chief Financial Officer of The Student Loan
Corporation, certify to SLC Student Loan Receivables I, Inc. and its officers,
directors and affiliates, and with the knowledge and intent that they will rely
upon this certification (capitalized terms used herein without definition shall
have the meanings assigned to such terms in the Servicing Agreement, dated as of
______,200__ (the "Servicing Agreement"), between The Student Loan Corporation,
as servicer and administrator, and the Issuer), that:
1. I have reviewed the servicing reports relating to the Issuer
delivered by the Servicer to the Indenture Trustee covering
the fiscal year 200__;
2. Based on my knowledge, the servicing information in these
reports, taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading as of the last day of the period covered by these
servicing reports;
3. Based on my knowledge, the servicing information required to
be provided to the Indenture Trustee by the Servicer under the
Servicing Agreement for inclusion in the reports to be filed
by the Indenture Trustee is included in the servicing reports
delivered by the Servicer to the Indenture Trustee;
4. I am responsible for reviewing the activities performed by the
Servicer under the Servicing Agreement and based upon my
knowledge and the annual compliance review required under
Section 3.2(a) of the Administration Agreement with respect to
the Servicer, and except as disclosed in the compliance
certificate delivered by the Servicer under Section 3.2(a) of
the Administration Agreement, the Servicer has fulfilled, in
all material respects, its obligations under the Servicing
Agreement; and
D-1
5. The reports disclose all significant deficiencies relating to the
Servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a
review in compliance with the attestation standards established by the
American Institute of Certified Public Accountants, as set forth in the
Administration Agreement.
Date: _________________________
---------------------------------------
________________
Chief Financial Officer
D-1
ATTACHMENT E
FORM OF ANNUAL CERTIFICATION
Re: The Servicing Agreement dated as of ______,200__ (the
"Agreement"), among SLC Student Loan Trust _____, as Issuer and
The Student Loan Corporation, as Servicer and Administrator
I, __________ , the __________ of The Student Loan Corporation (the
"Servicer"), certify to the Administrator, on behalf of the Issuer, and their
officers, with the knowledge and intent that they will rely upon this
certification, that:
(1) I have reviewed the servicer compliance statement of the
Servicer provided in accordance with Item 1123 of Regulation AB (the "Compliance
Statement"), the report on assessment of the Servicer's compliance with the
servicing criteria set forth in Item 1122(d) of Regulation AB (the "Servicing
Criteria"), provided in accordance with Rules 13a-18 and 15d-18 under Securities
Exchange Act of 1934, as amended (the "Exchange Act") and Item 1122 of
Regulation AB (the "Servicing Assessment"), the registered public accounting
firm's attestation report provided in accordance with Rules 13a-18 and 15d-18
under the Exchange Act and Item 1122(b) of Regulation AB (the "Attestation
Report"), and all servicing reports, officer's certificates and other
information relating to the servicing of the trust student loans by the Servicer
during ____ that were delivered by the Servicer to the Administrator, on behalf
of the Issuer, pursuant to the Agreement (collectively, the "Company Servicing
Information");
(2) Based on my knowledge, the Company Servicing Information, taken
as a whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in the light of the
circumstances under which such statements were made, not misleading with respect
to the period of time covered by the Company Servicing Information;
(3) Based on my knowledge, all of the Company Servicing Information
required to be provided by the Servicer under the Agreement has been provided to
the Administrator, on behalf of the Issuer;
(4) I am responsible for reviewing the activities performed by the
Servicer under the Agreement, and based on my knowledge and the compliance
review conducted in preparing the Compliance Statement and except as disclosed
in the Compliance Statement, the Servicing Assessment or the Attestation Report,
the Servicer has fulfilled its obligations under the Agreement in all material
respects; and
(5) The Compliance Statement required to be delivered by the Servicer
pursuant to the Agreement, and the Servicing Assessment and Attestation Report
required to be provided by the Servicer and by any Subservicer or Subcontractor
pursuant to the Agreement, have been
E-1
provided to the Administrator, on behalf of the Issuer. Any material instances
of noncompliance described in such reports have been disclosed to the
Administrator, on behalf of the Issuer. Any material instance of noncompliance
with the Servicing Criteria has been disclosed in such reports.
E-2
ATTACHMENT F
SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
The assessment of compliance to be delivered by The Student Loan
Corporation, as the Servicer, shall address, at a minimum, the criteria
identified below (the "Applicable Servicing Criteria"):
Reference Criteria
General Servicing Considerations
1122(d)(1)(i) Policies and procedures are instituted to monitor any
performance or other triggers and events of default in
accordance with the transaction agreements.
1122(d)(1)(ii) If any material servicing activities are outsourced to third
parties, policies and procedures are instituted to monitor the
third party's performance and compliance with such servicing
activities.
1122(d)(1)(iii) Any requirements in the Transaction Documents to maintain a
back-up servicer for the trust student loans are maintained.
Collection and Administration
1122(d)(2)(i) Payments on trust student loans are deposited into the
appropriate custodial bank accounts and related bank clearing
accounts no more than two business days following receipt, or
such other number of days specified in the Transaction
Documents.
1122(d)(2)(ii) Disbursements made via wire transfer on behalf of an obligor
or to an investor are made only by authorized personnel.
1122(d)(2)(iii) Advances of funds or guarantees regarding collections, cash
flows or distributions, and any interest or other fees charged
for such advances, are made, reviewed and approved as
specified in the Transaction Documents.
Pool Asset Administration
1122(d)(4)(i) Collateral or security on student loans is maintained as
required by the Transaction Documents or related student loan
documents.
1122(d)(4)(ii) Student loan and related documents are safeguarded as required
by the Transaction Documents
1122(d)(4)(iv) Payments on student loans, including any payoffs, made in
accordance with the related student loan documents are posted
to the Servicer's obligor records maintained no more than two
business days after receipt,
F-1
or such other number of days specified in the Transaction
Documents, and allocated to principal, interest or other items
(e.g., escrow) in accordance with the related student loan
documents.
1122(d)(4)(v) The Servicer's records regarding the student loans agree with
the Servicer's records with respect to an obligor's unpaid
principal balance.
1122(d)(4)(vi) Changes with respect to the terms or status of an obligor's
student loans (e.g., loan modifications or re-agings) are
made, reviewed and approved by authorized personnel in
accordance with the Transaction Documents and related pool
asset documents.
1122(d)(4)(vii) Loss mitigation or recovery actions (e.g., forbearance plans,
modifications and deeds in lieu of foreclosure, foreclosures
and repossessions, as applicable) are initiated, conducted and
concluded in accordance with the timeframes or other
requirements established by the Transaction Documents.
THE STUDENT LOAN CORPORATION,
not in its individual capacity but solely
as Servicer
By: __________________
Name:
Title:
F-2
