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EXHIBIT 10.6
FLORIDA DEPARTMENT OF EDUCATION
OFFICE OF STUDENT FINANCIAL ASSISTANCE
FLORIDA GUARANTEED LOAN PROGRAM
LENDING INSTITUTION PARTICIPATION AGREEMENT
This Agreement is entered into for the purpose of participation in the Florida
Guaranteed Loan Programs.
WHEREAS, Star Bank, N.A. as Trustee for Student Loan Funding hereinafter
referred to as the "Lender", wishes to be able to secure loan insurance on
loans made to or on behalf of students pursuing programs of postsecondary
education pursuant to Title IV, Part B, of the Higher Education Act of 1965, as
amended, hereinafter referred to as the "Act", and
WHEREAS, The Florida Department of Education, hereinafter referred to as the
"Department", has qualified for reinsurance of such loans and having found the
Lender qualifies as an eligible lender under the provisions of the Act, the
applicable parts of Title 34 of the Code of Federal Regulations (hereinafter
referred to as "Federal Regulations"), Florida Statutes and the Rules of the
State Board of Education (hereinafter referred to as "SBE Rules"), wishes to
encourage the purchase of or origination of such loans by the Lender.
NOW, THEREFORE, it is agreed that:
1. Within such limits as may be set by the Act, Federal Regulations,
Florida Statutes and SBE Rules, the Department shall fully guarantee all
loans purchased or originated by the lender which are reinsurable under
Act and Federal Regulations. The Act, the applicable Federal
Regulations, the applicable Florida Statutes and SBE Rules are a part of
this Agreement.
2. In making or servicing guaranteed loans to or on behalf of eligible
borrowers, the Lender will assist them in securing such reductions in
their obligations to pay interest on loans made by the Lender as they
may be eligible to receive under the Act and Federal Regulations.
3. Due diligence in making, servicing, and collecting Florida guaranteed
loans will be provided by the Lender as specified by Federal Regulations
and SBE Rules.
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4. The Lender will maintain transaction records and reports in such
form and containing such information as the Department requires, and
will afford access thereto as the Department or its authorized
representatives may find necessary to assure correctness and to verify
such records and reports.
5. The Department will supply the Lender with all forms and
informational materials as are necessary to perform the requirements set
forth by this Agreement. Any addition, substitution or alteration of
forms provided by the Department must be approved, in advance of their
use, by the Department.
6. The Lender will provide notification to the Department when it
acquires a loan for which the Department has issued a notice of loan
guarantee. Regarding a guarantee loan already held by the Lender, in
order for a loan account to remain subject to the Department's guarantee
obligation, the loan may be transferred only to another approved lender
or eligible holder of Florida Guaranteed loans.
7. Payment of a note may be extended in whole or in part, and the
provisions of the note may be modified without notice to and without
affecting the liability of the Department, if such extension or
modification complies with the requirements for notes under this
Agreement, Federal Regulations and SBE Rules.
8. The Lender will notify the Department of any servicing or
management of the Lender's guaranteed loan portfolio performed by an
agent(s) other than the holder of record.
9. Whenever any guaranteed note shall be in default, or upon the
death or total and permanent disability of a borrower, or upon
adjudication in bankruptcy, the Department will, upon receipt of a
properly documented claim from the Lender, purchase the total amount of
principal and interest then due and owing to the Lender, in accordance
with Federal Regulations and SBE Rules.
10. The Department shall maintain on deposit with the State Treasurer
of Florida or State Board of Administration funds of negotiable
securities representing no less than two percent (2%) of the total
unpaid principal amount of all guarantees issued by the Department or
the guaranteed portion of unpaid principal of all notes previously
guaranteed by the Department exclusive of such portion as may have been
reinsured or guaranteed by the United States of America or an agency,
department, or
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instrumentality thereof. A statement of such funds and securities as of
the close of the latest state fiscal year shall be furnished to the
Lender upon request.
11. The Lender represents that the Lender is not currently the object of
any directive issued by the U.S. Department of Education or any state
or federal agency which has the potential to limit, suspend or
terminate the Lender's eligibility to participate in the guaranteed
loan programs. Further, the Lender will notify the Department on the
same day it receives any such directives while this Agreement is in
effect.
12. The Lender will not enter into any formal or informal agreement with
any school regarding the availability of Florida guaranteed loans, and
will not provide to or accept financial inducements from any school for
making Florida guaranteed loans available to students attending a
school.
13. The Lender shall not discriminate nor deny equal opportunity on the
basis of race, religion, sex, creed, national origin, marital status,
or veteran status in any decision material to participation in the
Florida Guaranteed Loan Programs, such as but not limited to, loan
eligibility determinations, or approval of deferments, forbearances,
repurchases and loan consolidation or refinancing.
14. As a condition to the obligation of the Department herein, the Lender
agrees to comply with all laws, rules, and regulations, currently in
effect and as may be amended during the term of this Agreement, that are
applicable to the transactions and loans which are to be guaranteed.
15. This Agreement shall apply only to loans made after the date of
execution by the Department and may be terminated by the Lender by
providing written notice to the Department thirty (30) days in advance
of the termination date. If the Department intends to terminate this
Agreement, the Department will establish the termination date in
accordance with the provisions set forth in Federal Regulations and SBE
Rules. The termination of this agreement shall not affect the coverage
of loans guaranteed prior to such termination.
16. The Lender shall provide to the Department a Secretary's or Cashier's
Certificate and a Certificate of Incumbency and Authenticity of
Signatures, in the formats set out in Attachments 1 and 2, which are
incorporated in and made a part of this Agreement by reference, or in a
substantially equivalent format.
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IN WITNESS WHEREOF, the parties have caused this instrument)which
constitutes the entire Agreement of the parties and which shall not be amended
except in writing or as stated herein) to be executed by their duly authorized
officers.
FOR THE LENDER
As an officer of this lending institution, I agree that this institution and
its representatives will comply with all laws, program regulations and rules
under this Agreement.
/s/ Xxxxx X. Xxxxxxx 4/27/98
-------------------------------- -------------------------
Signature of Official Date
Xxxxx X. Xxxxxxx
--------------------------------
Typed name of Official
FOR THE DEPARTMENT
/s/ Xxxx X. Xxxxxx 5/11/98
-------------------------------- -------------------------
Administrator, Federal Programs Date
Office of Student Financial Assistance
Florida Department of Education
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ADDENDUM TO LENDING INSTITUTION PARTICIPATION AGREEMENT
FLORIDA GUARANTEE LOAN PROGRAMS
INDEMNIFICATION AGREEMENT
The Star Bank, N.A. as Trustee for Student Loan Funding, hereinafter referred
to as the "Lender", and the Florida Department of Education, hereinafter
referred to as the Department, agree the Lending Institution Participation
Agreement between the Lender and the Department is amended as follows:
1. When a document required by Rules 6A-20.109 of the Florida
Administrative Code to be included in a claim package submitted by the
Lender to the Department is lost or destroyed, the Lender agrees to
submit in the claim package, in lieu of the required document, the
substituted documentation prescribed below:
a. Borrower's Application. An affidavit describing the circumstances
that resulted in the loss or destruction of the borrower's
application.
b. Original promissory note signed by the borrower. A certified copy
of the original promissory note signed by the borrower and an
affidavit describing the circumstances that resulted in the loss or
distribution of the original promissory note. If neither the
original nor a certified copy of the original promissory noted
signed by the borrower can be provided, the Lender shall also
include in the claim package, in addition to the affidavit, copies
of the front and back of the loan disbursement check(s).
c. Copy of the Notice of Loan Guarantee or Notice of Loan Statement
and Disclosure Statement. An affidavit describing the
circumstances that resulted in the loss or destruction of the
Notice of Loan Guarantee or Notice of Loan and Guarantee and
Disclosure Statement.
d. Copy of Repayment Schedule and Disclosure Statement. A record, in
a format approved by the Department, of the repayment terms as they
were disclosed to the borrower.
e. Copy of a deferment form. A record of the deferment granted, in a
format approved by the Department and an affidavit describing the
circumstances that resulted in the loss or destruction of the
deferment form.
f. Copy of the borrower signed forbearance form. A record of the
forbearance granted, in a format approved by the Department and an
affidavit describing the circumstances that resulted in the loss or
destruction of the forbearance form.
2. The Lender, its successors and assignees shall hold the Department
harmless from any losses directly resulting from claims paid pursuant to
paragraph one (1) of this agreement where the underlying loan is
declared invalid by a court of law or not reinsured by the United States
Department of Education because of the lack of the required document.
3. For circumstances to which paragraph two (2) may apply, the Department
will notify the Lender in writing and permit the Lender to enter an
appearance or take the appropriate action to establish the validity of
the debt. Upon receiving such notice the Lender will have ten days to
enter an appearance or take other action. In event the Lender does not
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respond to the notice within ten days, the Department shall presume that
the Lender does not intend to enter an appearance and shall be entitled
to indemnification as provided in paragraph two (2).
4. The Lender agrees that the affidavit submitted in lieu of a required
document pursuant to paragraph one (1) of this agreement shall be
substantially similar to Attachment A. The affidavit shall be signed by
an authorized official of the Lender or its agent.
5. Provided the Lender complies with the provisions of paragraphs one (1)
through four (4) of this agreement, the Department agrees to waive the
requirement specified in 6A-10.109 of the Florida Administrative Code
for each document that the Lender cannot submit.
6. This waiver is limited to situations where the Lender affirms by
affidavit that a diligent search has been made to locate the document(s)
and that if the document is subsequently found by the Lender, it will be
promptly forwarded to the Department.
7. The Lender and the Department agree that this waiver will not be
applicable in situations where the Department determines that the loss
or destruction of the required document is the result of negligence by
the Lender or a failure of the Lender to perform reasonable diligence in
maintaining the required document.
8. This agreement may be terminated by the Lender by providing written
notice to the Department thirty (30) days in advance of the termination
date. The termination of this agreement by the Lender shall not affect
such termination. This agreement may be terminated by the Department by
providing a written notice to the Lender that specifies the affective
date of the termination. The termination of this agreement by the
Department shall not affect claims paid pursuant to paragraph one (1) of
this agreement prior to the date the Department issues such a
termination notice.
For the Lender
As an officer of this institution, I agree that this institution and its
representatives will comply with the conditions specified in this agreement
/s/ Xxxxx X. Xxxxxxx 4/27/98
----------------------------------- --------------------------------
Signature of Official Date
Xxxxx X. Xxxxxxx, Senior Trust Officer
--------------------------------------------------------------------------
Typed Name and Title of Official
For the Department
/s/ Xxxx X. Xxxxxx 5/11/98
---------------------------------------- --------------------------------
Xxxx X. Xxxxxx, Director Date
Office of Student Financial Assistance
Florida Department of Education
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LENDING INSTITUTION
SUPPLEMENTAL PARTICIPATION AGREEMENT
FLORIDA GUARANTEED LOAN PROGRAMS
This Agreement sets out the procedures, responsibilities, and liabilities
of the parties arising from the transmittal in machine readable form of Florida
Guaranteed Loan Programs tape. This agreement supplements the Lending
Institution Participation Agreement entered in to between the Office of Student
Financial Assistance, Florida Department of Education, and the Lender on June 1,
1998.
Section A. The Parties
The parties to this Agreement are the Office of Student Financial
Assistance (Office), Florida Department of Education, 000 Xxxxxxx Xxxxxxxx,
Xxxxxxxxxxx, Xxxxxxx 00000-0000 and Star Bank, N.A. as Trustee for Student Loan
Funding hereinafter called the Lender.
Section B. Term
This Agreement shall be effective on June 1, 1998 and shall remain in
effect unless amended by written agreement executed in the same manner as the
Supplemental Participation Agreement, or terminated by either party upon sixty
days written notice sent by certified U.S. Mail, return receipt requested,
addressed to the other party at the address set out in Section A above.
Section C. Duties of the Institution
The Institution agrees to:
1. Prepare and transmit, either electronically or by magnetic tape,
Florida Guaranteed Loan Programs application data in a format
specified by the Office. In performing this duty, the Lender shall
exercise care to ensure that the information contained in each
transmission is identical to the information contained in
application documents, and warrants that it maintains procedures
reasonably adapted to avoid error in the information transmitted.
2. Verify application date to the extent required by prevailing federal
statute and regulation.
3. Maintain the official copy, as prescribed by federal statute and
regulation, of any documents containing Florida Guaranteed Loan
Program application information transmitted to the Office
electronically or by magnetic tape.
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4. Promptly furnish a copy of any documents maintained pursuant to the
immediately preceding paragraph, at the request of authorized
parties. Authorized parties include the educational institution,
any subsequent holder of the loan, the U.S. Department of
Education, and the Office.
5. Cooperate in the resolution of any difficulties or problems which
arise in the processing of application information under this
Agreement.
Section D. Violation of This Agreement by the Institution
In the event information transmitted to the Office by the Lender differs
from the information listed on a borrower's loan application documents and that
error causes, directly or indirectly, a loan to be made to a student who is
ineligible for such loan, the Office shall have a right to:
1. Deny any insurance claim submitted by the Lender for that loan; and
2. Require the Lender to reimburse any holder of the loan, including
the Office for any loss incurred on that loan.
Section E. Duties of the Office
The Office agrees to:
1. Exercise reasonable care to ensure that the information maintained
in its files is identical to the information transmitted in machine
readable format, either electronically or by magnetic tape, from the
Lender.
2. Prescribe application data items, specifications and formats to be
used by the Lender in performing its duties.
3. Approve the format of documents which are required to be maintained
by the Institution pursuant to Section C.3.
4. Promptly furnish the Lender with any amendment or other changes in
the data items specifications, or formats approved by the Office for
the transmission of data in machine readable format, electronically
or by magnetic tape.
5. Cooperate in the resolution of any difficulties or problems which
may arise from the processing of application information under this
Agreement.
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SIGNATURE PAGE FOR THE
SUPPLEMENTAL PARTICIPATION AGREEMENT
FLORIDA GUARANTEED LOAN PROGRAMS
LENDING INSTITUTIONS
In witness whereof, the parties hereto have signed this Agreement this 11th day
of May, 1998.
Star Bank, N.A. as Trustee for
Student Loan Funding
------------------------------ Office of Student Financial Assistance
Name of Institution Florida Department of Education
/s/ Xxxxx X. Xxxxxxx /s/ Xxxx X. Xxxxxx
------------------------------ --------------------------------------
Signature of Official Signature of Official
Xxxxx X. Xxxxxxx Xxxx X. Xxxxxx
------------------------------ --------------------------------------
Name of Official Name of Official
Senior Trust Officer Director
------------------------------ --------------------------------------
Title of Official Title of Official
000 Xxxxxx Xx., XX0000, P.O. Box 1118 5/11/98
------------------------------ --------------------------------------
Street Address Date of Signature
Xxxxxxxxxx, XX 00000-0000
------------------------------
City/State/Zip
829626, 830631, 831008, 831299, 831455,
831640, 831692, 831785, 833361, 833207
------------------------------
Federal Lender Code Number
4/27/98
------------------------------
Date of Signature
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FLORIDA DEPARTMENT OF EDUCATION
OFFICE OF STUDENT FINANCIAL ASSISTANCE
PRE-APPROVED LENDER PROGRAM PROCEDURES
Program Description
The Florida Office of Student Financial Assistance (OSFA) offers the Pre-
Approved Lender Program to lending institutions that participate in the Florida
Guaranteed Student Loan Programs (FGSLP). The program provides for the
completion of the Lender's section of the FGSL Application/Promissory Note,
approval of the loan, and disbursement of loan proceeds on the Lender's behalf
by OSFA's contract servicer. The program is intended to streamline the
application process and reduce the Lender's workload in loan origination. OSFA
shall be responsible for all acts or omissions by its contract servicer. The
Lending Institution Participation Agreement between (*See below) (Lender) and
OSFA of June 1, 1998 (Date of Agreement) shall remain in full force and effect.
Explanation of Services
Lenders participating in FAST (Florida Automated System Technology) through a
personal computer system to mainframe or mainframe to mainframe transmission,
or Lenders who process applications manually may participate in the
Pre-Approved Lender Program. The following services are available to the
Lender regardless of the Lender's chosen processing system.
1. OSFA will receive application information for Lender, and the
Lender section of the Application/Promissory Note will be electronically
entered and certified on the Lender's behalf by OSFA or its servicer
using information supplied electronically to OSFA by the school or
otherwise.
2. If school and borrower data is complete and accurate, applications for
Pre-Approved Lenders will be issued a guarantee within 24 hours which
together with loan information will be transmitted to the Lenders.
3. OSFA will send a notice to the applicant that the loan has been
guaranteed including the expected disbursement dates.
General Requirements
1. The Lender must sign a Pre-Approved Lender Agreement and submit it to
the Office of Student Financial Assistance.
2. The Lender must utilize this service for all FGSL loans processed after
the effective date authorized in the Pre-Approved Lender Agreement.
3. The Lender, for those loans it chooses to make, must disburse all FGSL
loans in accordance with the Notice of Loan Guarantee and Disclose
Statement and as permitted by Federal Regulations.
4. Nothing in the Pre-Approved Lender Program Agreement or the Lending
Institution Participation Agreement signed by the Lender requires the
Lender to make any particular loan or number of loans.
*Star Bank, N.A. as Trustee for Student Loan Funding
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5. Applications received by OSFA with incomplete or inaccurate information,
or for borrowers deemed "ineligible" due to exceeding loan limits,
delinquency or default, will be reported to the Lender by means of a
reject report which will be mailed or transmitted electronically toe the
Lender promptly, normally within 24 hours of receipt of the application
data.
Standards for Completion of applications
1. Loan Disbursement Dates
a. Loan disbursement dates will be scheduled according to the school's
recommended disbursements dates provided these dates comply with
federal requirements.
b. If the school's recommended disbursement date(s) do not meet
federal requirements, disbursements will be scheduled as follows:
1) The first disbursement will be set to either the current date
(guaranteed date) to 15 days prior to the loan period begin
date, whichever is later.
2) The second disbursement date will be in chronological order
and set appropriately to either 15 days prior to the second
term begin date, or one-third of the loan period.
3) Third and fourth disbursements will be in chronological order
and set according to the school's recommended disbursement
dates provided they are not earlier than the second
disbursement date.
4) The Lender may disburse on a date other than the scheduled
disbursement date(s) provided such a disbursement is in
compliance with the Higher Education Act of 1965, as amended.
2. Loan Amount
The borrower's loan amount will not exceed the maximum annual limits
specified in the Higher Education Act of 1965, as amended.
3. Interest Rate
The interest rate will be determined by using the loan history disclosed
in the student section of the application as well as verifying this
information against the system database.
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The foregoing is agreed to:
Star Bank, N.A. as Trustee for
Student Loan Funding Florida Department of Education
------------------------------ Office of Student Financial
Name of Institution Assistance
/s/ Xxxxx X. Xxxxxxx /s/ Xxxx X. Xxxxxx
------------------------------ ------------------------------------
Signature Signature
Xxxxx X. Xxxxxxx Xxxx X. Xxxxxx
------------------------------ ------------------------------------
Typed Name Typed Name
Senior Trust Officer Director
------------------------------ ------------------------------------
Title Title
4/27/98 5/11/98
------------------------------ ------------------------------------
Date Date
829626, 830631, 831008, 831299, 831455
831640, 831692, 831785, 833361, 833207
-------------------------------
Lender Code Number
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FLORIDA OFFICE OF STUDENT FINANCIAL ASSISTANCE
PRE-APPROVED LENDER PROGRAM AGREEMENT
I authorize the Office of Student Financial Assistance, Department of Education
and its contract servicer, to process loans in accordance with the terms and
conditions described in this Agreement and the attached Pre-Approved Lender
Program Procedures, for the Guaranteed Student Loan Pre-Approved Lender Program
as specified below.
The Pre-Approved Lender Program will be used for Florida Guaranteed Student
Loans with the annual loan volume not to exceed $ No Limit. (If no limit, write
"No Limit")
/s/ Xxxxx X. Xxxxxxx 4/27/98
--------------------------------- -------------------------------
SIGNATURE DATE
Xxxxx X. Xxxxxxx, Senior Trust Officer
-------------------------------------------------------
NAME AND TITLE (Please type or print)
Star Bank, N.A. as Trustee for Student Loan Funding
-------------------------------------------------------
NAME OF LENDING INSTITUTION
829626, 830631, 831008, 831299, 831455
831640, 831692, 831785, 833361 833207
----------------------
LENDER CODE NUMBER
000 Xxxxxx Xxxxxx, ML 5125
-------------------------------------------------------
X.X. Xxx 0000
-------------------------------------------------------
ADDRESS
Xxxxxxxxxx, Xx 00000-0000
-------------------------------------------------------
CITY STATE ZIP
Approved by:
Florida Department of Education
Office of Student Financial Assistance
/s/Xxxx X. Xxxxxx 5/11/98
-------------------------------------------------------
SIGNATURE
Xxxx X. Xxxxxx, Director
-------------------------------------------------------
NAME AND TITLE
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[ LOGO ]
FLORIDA DEPARTMENT OF EDUCATION
Xxxxx X. Xxxxxx
Commissioner of Education
FLORIDA FEDERAL FAMILY EDUCATION LOAN PROGRAM
FEDERAL CONSOLIDATION LOANS
LENDER PARTICIPATION AGREEMENT
WHEREAS, Star Bank, N.A. as Trustee for Student Loan Funding, hereinafter
referred to as the "Lender," wishes to participate in a program of Federal
Consolidation Loans for eligible borrowers under Title IV, Part B, of the Higher
Education Act of 1965, as amended, and
WHEREAS, the Florida Department of Education, Office of Student Financial
Assistance, hereinafter referred to as the "Department," having found that the
eligible lender qualifies under the provisions of such Act and State Board of
Education Rules.
THEREFORE, it is agreed by the Department and the Lender as follows:
(1) The Lender is currently an eligible lender and/or holder with the United
States Department of Education for Federal Xxxxxxxx Loans (formerly
called Guaranteed Student Loans) and/or Federal PLUS loans, and Federal
Supplemental Loans for Students.
(2) Within such limits as may be set by it, the Department shall insure all
Federal Consolidation Loans made by the eligible lender which are
eligible for such reinsurance under such Acts and Regulations issued
thereunder, which Acts and Regulations, as they may from time to time be
amended, are made a part of this agreement.
(3) An eligible lender must verify that an eligible borrower has no other
application pending for a Federal Consolidation Loan and the lender must
hold at least one of a borrower's eligible loans for consolidation, or
obtain a certification that the borrower has been unable to obtain a
consolidation loan with income-sensitive repayment terms from the
holder(s) of his/her outstanding loans selected for consolidation. At
least one loan to be consolidated must be a loan guaranteed by the
Department.
(4) The Lender must meet the applicable guidelines set forth in the Higher
Education Act of 1965, as amended.
(5) The proceeds of the Federal Consolidation Loan will be paid by the
eligible lender to the holder(s) of the loans selected for consolidation
to discharge the liability of such loans.
(6) The Lender agrees to follow such other published terms and conditions as
the Secretary of Education and the Department specifically require to
carry out the Federal Consolidation Loan Program.
(7) If the eligible lender no longer intends to make Federal Consolidation
Loans under this agreement, the agreement shall be terminated sixty (60)
days after receipt of the request. This agreement may also be terminated
by the Department in a manner provided by law. The termination of this
agreement shall not affect the coverage of loans under guarantee issued
prior to such termination.
PAGE 1 OF 2
000 Xxxx Xxxxxx Xxxxxx - Xxxxxxxxxxx, Xxxxxxx 00000-0000
An affirmative action/equal opportunity employer
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IN WITNESS THEREOF, The Florida Department of Education, Office of Student
Financial Assistance has executed this agreement in Tallahassee, Florida.
Xxxx X. Xxxxxx, Director
--------------------------------------------------------------------------
Name and Title of Department Official
/s/ Xxxx X. Xxxxxx 5/11/98
--------------------------------------------- -------------------------
Signature of Department Official Date
The above agreement accepted this 11th day of May 1998
Exact Corporate Title:
Name Star Bank, N.A. as Trustee for Student Loan Funding
-----------------------------------------------------------------
Address 000 Xxxxxx Xxxxxx, XX 0000, X.X. Xxx 0000
-----------------------------------------------------------------
Xxxxxxxxxx, XX 00000-0000
--------------------------------------------------------------------------
Federal EI No. 00-0000000 XX Xxxxxxx Xxxxxx Xx. (Xxxxxx Xxxx) 000000, 830631,
831008, 831299,
831455, 831640,
831692, 831785,
833361, 833207
Name and Title of Officer Xxxxx X. Xxxxxxx, Senior Trust Officer
------------------------------------------------
Signature of Officer /s/ Xxxxx X. Xxxxxxx
----------------------------------------------------
(1996)
PAGE 3 OF 2
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[ LOGO ]
FLORIDA DEPARTMENT OF EDUCATION
XXXXX X. XXXXXX
Commissioner of Education
CERTIFICATE OF COMPREHENSIVE INSURANCE
(For Federal Consolidation Loans made in accordance with Title IV,
Part B of the Higher Education Act of 1965, as amended)
The Florida Department of Education, Office of Student Financial Assistance,
hereinafter referred to as the "Department," authorizes that all consolidation
loans made in conformity with the requirements of Part B of Title IV of the
Higher Education Act of 1965, as amended, by (*See below) hereinafter referred
to as the "Lender," are fully insured against loss of principal and interest by
the Department provided:
1. The lender has determined to its satisfaction, in accordance with
reasonable and prudent business practices, for each loan being consolidated
that:
(a) the loan is a legal, valid, and binding obligation of the borrower;
(b) each such loan was made and serviced in compliance with applicable
laws including federal regulations and State Board Rule; and
(c) the insurance on each Part B loan is in full force and effect.
2. That the consolidation loan(s) will be made on or after June 1, 1998 but
no later than provided for in the Higher Education Act of 1965, as amended.
3. That the total unpaid principal amount of all consolidation loans made
under this certificate is equal to or not to exceed $20,000,000.00.
4. That this certificate will be updated and renewed as determined by the
lender.
5. That the lender will meet reporting requirements established by the
Department in a timely manner.
6. That the lender structures a repayment schedule with the eligible
borrower pursuant to the requirements stated in the Higher Education Act of
1965, as amended regarding Federal Consolidation Loans.
7. That, if the lender, prior to the expiration of this certificate no
longer wishes to make Federal Consolidation Loans, the lender will so notify
the Department in order that the certificate may be terminated. Such
termination shall not affect the insurance on any Federal Consolidation loan
made prior to such termination.
*Star Bank, N.A. as Trustee for Student Loan Funding
000 Xxxx Xxxxx Xxxxxx - Xxxxxxxxxxx, Xxxxxxx 00000-0000
An affirmative action/equal opportunity employer
17
8. The lender's Federal Consolidation Loan Program practices are subject to
the Department's Federal Family Education Loan Program lender Participation,
Limitation, Suspension or Termination procedures. The insurance on any Federal
Consolidation loan(s) made under this certificate prior to the Department's
imposition of a limitation, suspension or termination action shall not be
affected by such action.
The Florida Department of Education, Office of Student Financial Assistance, is
designated as the office which will process claims and perform other related
administrative functions.
IN WITNESS THEREOF, The Florida Department of Education, Office of Student
Financial Assistance has executed this agreement in Tallahassee, Florida.
Xxxx X. Xxxxxx, Director
--------------------------------------------------------------------------
Name and Title of Department Official
/s/ Xxxx X. Xxxxxx 5/11/98
------------------------------------------ ---------------------------
Signature of Department Official Date
The above agreement accepted this 11th day of May 1998
Exact Corporate Title:
Name Star Bank, N.A. as Trustee for Student Loan Funding
------------------------------------------------------------------
Address 000 Xxxxxx Xxxxxx, XX 0000, X.X. Xxx 0000
------------------------------------------------------------------
Xxxxxxxxxx, XX 00000-0000
--------------------------------------------------------------------------
Federal EI No. 00-0000000 XX Xxxxxxx Xxxxxx Xx. (Xxxxxx Xxxx) 000000, 830631,
831008, 831299,
831455, 831640,
831692, 831785,
833361, 833207
Name and Title of Officer Xxxxx X. Xxxxxxx, Senior Trust Officer
------------------------------------------------
Signature of Officer /s/ Xxxxx X. Xxxxxxx
----------------------------------------------------
(Revised 1996)
