Document:

exv10w39

 

EXHIBIT 10.39

2401 International Lane, Madison, Wisconsin 53704-3192

Student Loan Guaranty

(For Loans to Students and Parents Under Title IV Part B of the

Higher Education Act of 1965 as amended)

Definitions: The term guarantor used herein shall mean the Great Lakes Higher Education Guaranty
Corporation. Corporation shall mean Great Lakes Higher Education Guaranty Corporation. Lender
shall include the undersigned and any eligible lender who becomes the assignee, pursuant to
applicable statutes and regulations, of loans to students and parents granted under Title IV, Part
B of the Higher Education Act of 1965, as amended (the “Act”).

Applicability. The benefits provided under this guaranty are applicable to any loan guaranteed
under the Act. Within such limits as may be established herein and/or within such limits as the
guarantor shall from time to time establish, the guarantor agrees to pay, upon proper notice of
death, permanent and total disability, default or any other event or circumstance for which a claim
may be paid under the Act, the outstanding principal and interest due to the lender upon any
student or parent loan covered by this guaranty.*

Limitations. This guaranty is subject to all applicable federal statutes and administrative
regulations. This guaranty is further subject to such limitations and procedures as are, or may
be, established by Rules and Regulations of the Great Lakes Higher Education Guaranty Corporation
(the “Corporation Rules and Regulations”). All applicable federal statutes and regulations and
Corporation Rules and Regulations as they may from time to time be amended are made a part of this
guaranty and incorporated herein.

The obligations of the lender as set forth in this guaranty shall constitute conditions precedent
to any obligation on the part of the guarantor.

Obligations of the Lender:

	(a)  	The lender shall be an eligible lender under the Act and federal regulations.
	 
	(b)  	The lender shall exercise due diligence as defined under the Act and federal regulations and
within the meaning of the Corporation Rules and Regulations.
	 
	(c)  	The lender shall comply with all applicable federal statutes and regulations.
	 
	(d)  	The lender shall notify the Corporation promptly of any change of name by the lender, or
assignment of the lender’s interest under this guaranty.
	 
	(e)  	Any assignments of any interest of the lender under this guaranty shall be only to
appropriate eligible lenders and shall be in compliance with all applicable provisions of
federal statutes and regulations and Corporation Rules and Regulations.
	 
	(f)  	The lender shall cooperate with the Corporation, the Department of Education and any other
appropriate federal agency in the collection of any defaulted student or parent loan.
	 
	(g)  	The lender shall assist eligible borrowers in securing reductions on obligations to pay
interest on loans made by, or assigned to, the lender which reductions the borrowers may be
eligible

 

 

	   	to receive under applicable federal statutes and regulations and the Corporation Rules and
Regulations.

Termination. This guaranty may be terminated by the lender as to any loans made by the lender
following not less than thirty days written notice to the Corporation. This guaranty may be
terminated by the Great Lakes Higher Education Guaranty Corporation in the manner provided for by
the Corporation Rules and Regulations. The termination of this guaranty shall not affect the
coverage of any loans subject to this guaranty which were made prior to the date of termination.

*Notwithstanding the foregoing, default claims with respect to loans first disbursed on or after
October 1, 1993, shall be paid at ninety-eight percent (98%) of the outstanding principal and
interest due to the lender, or such lesser rate, if any, as may be provided in Section 428(b)(1)(G)
of the Higher Education Act of 1965, as amended. Specifically, and without limitation, this
guaranty shall not apply to any loan which is not eligible for reinsurance as a result of school
based defenses or other defenses to enforceability under state or federal law. Payment hereunder
is expressly limited to monies constituting the guarantor’s Guaranty Reserve Fund as established in
accordance with the regulations governing the Federal Family Education Loan Program as found in 34
CFR 682.410(a)(1) or as provided under Title IV, Part B, Section 432(o) of the Higher Education Act
of 1965, as amended.

	 	 	 	 	 	 	 
	 	 	Great Lakes Higher Education Guaranty

Corporation	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard D. George
	 	02/21/2003
	

	 	 	 	 
	 	 
	

	 	 	 	Authorized Officer
	 	Date

     The above Guaranty is hereby accepted this 21st day of  February ,
2003 Exact Corporate Title The Bank of New York, as eligible lender trustee for Education Loan
Asset-Backed Trust I

	 	 	 	 	 	 	 
	By

	 	/s/ Mark McLaughlin
	 	Title of Officer
	 	Vice President
	

	 	 
	 	 	 	 
	Employee Identification Number 13 516 0382	 	Lender Number 833922

 

 

Great Lakes Activation Instructions

Indicate the name of the contact person to be added to the Great Lakes database. Please fill
in all boxes, if the information is not applicable, indicate as N/A. The contact person would be
the main contact for Great Lakes to call if we have questions.

All correspondence including reports for Guarantee and Servicing will be sent to the above listed
person. For a listing of all reports sent, please see the “Welcome to Great Lakes Educational Loan
Services, Inc.” document.

	1.  	Indicate the way you’d like your Guarantee Notices sent. You have the choice of either
regular mail or electronically.
	 
	2.  	The Great Lakes issues a monthly Notable News bulletin to our customers. It can come to you
via email or sent through regular mail. You may sign up unlimited email addresses to receive
the Notable News bulletin. If you have more than the 3 spaces provided, please list them at
the bottom on the activation request form. The Notable News contains vital information
regarding FFELP regulations and processing.
	 
	3.  	Please indicate if you will be originating new loans under this lender number.
	 
	4.  	Great Lakes offers Servicing to all lenders. Please identify here if Great Lakes will handle
Servicing for you. If it is someone other than Great Lakes please give the Servicer
information requested.
	 
	5.  	Indicate the loan types you will process as a Loan Origination System lender.
	 
	6.  	If you will accept Consolidation Loans please indicate here. A representative will be in
touch with you shortly after we receive the paperwork back.
	 
	7.  	Indicate your institution’s policy for processing proprietary school applications. A
proprietary school is a ‘For Profit’ institution.
	 
	8.  	For loan disbursement options please check how you’d like your disbursements to be sent.
Most schools prefer to receive their funds electronically. Indicate here if you will
participate in Electronic Funds Transfer (EFT). If you choose EFT, you will need to read the
EFT Guidelines and complete the ACH Authorization agreement form.
	 
	9.  	Some lenders offer incentive programs, such as interest rate reduction for on-time payments
or ACH for monthly payments. If you will be offering an incentive program, please explain in
detail what you will be offering in the space provided.
	 
	10.  	Great Lakes has a guarantor minimum of $50 and no loans will be guaranteed below that amount.
If you have a loan minimum higher than this, please indicate.
	 
	11.  	Indicate the Great Lakes Representative you’ve been working with.

 

 

It is Great Lakes’ policy to always file the 799 representing your Great Lakes’ serviced loans
directly to the Department of Education.

Please return this form and all other documents as directed to the Customer Service Department
listed below, or use the envelope provided to you.

Great Lakes Educational Loan Services, Inc.

Attn: Loan Operations/Marty Petry

2401 International Lane

Madison, WI 53704-3192

 

 

Great Lakes Activation Request

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  LENDER NAME

	 	 	ID NUMBER
	 	 	EIN NUMBER
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  MAILING ADDRESS AND CONTACT FOR GUARANTY RELATED CORRESPONDENCE
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  CONTACT
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  ADDRESS

	 	 	EMAIL	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  CITY

	 	 	STATE
	 	 	ZIP
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  PHONE NUMBER	 	 	FAX NUMBER
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 	 	 	 	 
	1.  How do you want your Guarantee Notices sent?

	 	 ̈  Via Paper
	 	 ̈  Electronic App Response File

	 	 	 	 
	TECHNICAL CONTACT

	 	 	PHONE NUMBER
	 

	 	 	 

	 	 	 	 	 
	2.  How do you want our monthly newsletter sent?

	 	 ̈  Via Paper
	 	 ̈  Electronic E-Notification

	 	 	 	 	 	 	 
	EMAIL ADDRESS

	 	 	EMAIL ADDRESS
	 	 	EMAIL ADDRESS
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	3.	 	Will you be originating new loans under this lender number?	 	 ̈  Yes	 	 ̈  No
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	If yes, please check
	 	 ̈  Great Lakes
	 	 ̈  Lender
	 	 ̈  Other	 	 

	 
	IF OTHER, WHO?

	 

	 	 	 	 	 	 	 	 	 
	4.

	 	Your loan will be serviced by?

	 	 ̈  Great Lakes
	 	 ̈  Lender
	 	 ̈  Other

	 	 	 	 
	IF OTHER, SERVICER NAME

	 	 	SERVICER ID NUMBER
	 
	 	 	 

5.   Check loan types offered:

	 	 	 	 	 	 	 
	

	 	      ̈  Subsidized/Unsubsidized/PLUS
	 	 ̈  Subsidized only
	 	 ̈  PLUS only
	 
	 	 	 	 	 	 
	6.

	 	Will you be offering Consolidated Loans?
	 	 ̈  Yes
	 	 ̈  No

	 	 	 	 	 	 	 
	7.

	 	Lender policy for proprietary school
	 	 ̈  No restrictions	 ̈  No proprietary schools 	 ̈  Other, per school basis
	 
	 	 	 	 	 	 
	 	 	If other, list who would like to be called	 	 	 

	 	 	 	 	 	 	 
	8.

	 	Loan Disbursement Options
	 	 ̈  Check only
	 	 ̈  Check and EFT with all schools participating

	 	 	 	 	 	 	 
	9.

	 	Are you offering any special incentives we should know about?
	 	 ̈  Yes
	 	 ̈  No

	 
	INCENTIVE OFFERED

	 

	 	 	 	 	 	 	 
	10.

	 	Lender loan minimum $	 	 	11.  Who was your initial contact at Great Lakes?	 

 

 

Gramm-Leach-Bliley Privacy Act Notice Process

Please discuss this process with the person or area responsible for distributing your privacy
policy information.

As you know, the Gramm-Leach-Bliley Act implementation included a privacy policy notification
requirement of all your customer relationships, including student loans. The Act requires you to
send an initial privacy policy notice to your borrowers at the time a new relationship is
established. Great Lakes Educational Loan Services, Inc. (Great Lakes) will assist all non-credit
union lenders in meeting the requirements of this Act. Annually and at the time a new borrower
relationship is established through a new loan disbursement originated by Great Lakes, or loan
purchase by you, Great Lakes will provide you an electronic file of your borrowers’ names and
addresses. You can then incorporate this information into your privacy policy distribution system.

Your privacy policy should direct student loan borrowers to contact a call center at your
institution regarding your policy. According to the servicing agreement, Great Lakes is prevented
from disclosing borrower information to third parties that are not associated with the student loan
transactions. Your lending institution would be in the best position to describe your privacy
policy and collect opt-out requests.

Privacy Act data files will be encrypted for security reasons, and sent to you an Internet email
attachments. We will make decrypting and opening the data files as easy for you as possible. Once
decrypted, the file can be imported into a spreadsheet or work processing program, or into your
institution’s automated Privacy Act notice distribution system.

To assist Great Lakes in sending this file to you, please complete the attached form and return it
as soon as possible. Great Lakes will need to know contact information for both a business and
technical contact at your lending institution. Necessary information includes the following:

	•  	Email addresses for the business and technical contacts as well as
for the files themselves.
	 
	•  	If your institution has a Help Desk, please provide us with their
telephone number and hours.
	 
	•  	Please provide us with your email program, such as Outlook, Notes,
GroupWise, Hotmail, AOL, CompuServe, Yahoo, etc.

If you have any questions about this process, please feel free to contact Lender Reporting at
(608) 246-1640, by fax at (608) 246-1619, or via email at lenderreporting@glhec.org.

 

 

Email Address and Contact Request

Please complete and fax this form to: Lender Reporting (608)-246-1619

If there are any questions, please call (608)-246-1640 or send an email to lenderreportng@glhec.org

Please note for all email addresses on this form, provide a common departmental mailbox rather than
a mailbox for an individual to minimize the amount of updates to email addresses when individuals
in your company assume new responsibilities.

	 	 	 	 	 
	 

Contact Information

	 	 	 	 	 
	 
	INSTITUTION NAME AND LENDER IDENTIFICATION NUMBER
	 	 	 	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	Business Contact

	 	Technical Contact	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	LAST NAME, FIRST NAME, MI

	 	LAST NAME, FIRST NAME, MI	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	TELEPHONE

	 	TELEPHONE	 	 
	(     )   —   Ext.

	 	(     )   —   Ext.	 	 
	 

	 	 	 	 
	EMAIL ADDRESS (Case Sensitive)

	 	EMAIL ADDRESS (Case Sensitive)	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Help Desk (if appropriate)
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	TELEPHONE

	 	HOURS OF OPERATION	 	 
	(     )   —   Ext.
	 	 	 	 
	 

	 	 	 	 

Email address that will receive transmission (as a file attachment)

	 	 	 	 	 
	 	 	 
	

	 	COMMON DEPARTMENTAL MAILBOX (Case Sensitive)	 	 
	 
	 	 	 	 
	 	 	 

Email address for notification in the event of transmission problems (if different than
Business Contact)

	 	 	 	 	 
	 	 	 
	

	 	EMAIL ADDRESS (Case Sensitive)	 	 
	 
	 	 	 	 
	 	 	 

Type of email application/software being used by your institution (i.e. Outlook, Notes, AOL,
CompuServe, Hotmail)

	 	 	 	 	 
	 	 	 
	

	 	EMAIL APPLICATION/SOFTWAREexv10w40

 

EXHIBIT 10.40

Guarantee Agreement

Between

Massachusetts Higher Education Assistance Corporation

And

The Bank of New York Trust Company of Florida, N.A.

     WHEREAS, The Massachusetts Higher Education Assistance Corporation doing business as American
Student Assistance (hereinafter “ASA”), at 330 Stuart Street, Boston, Massachusetts 02116, a
private nonprofit corporation created by Chapter 298 of the Acts of 1956 of the Commonwealth,
administers several loan guarantee programs providing financial assistance to and on behalf of
students enrolled in programs of higher education; and

     WHEREAS, The Bank of New York Trust Company of Florida, N.A., as eligible lender trustee for
Consolidation Loan Funding, LLC, solely in the capacity of eligible lender trustee and without
recourse to assets held by the eligible lender other than those held in trust for Consolidation
Loan Funding LLC (hereinafter “LENDER”), qualifies as an eligible lender under one or more of these
programs, fulfilling such criteria as have been set forth by federal and state statute and
regulation, and those set forth by the Board of Directors of ASA pertaining to the particular
program; and

     WHEREAS, LENDER is willing to make loans to eligible borrowers as such are defined in this
agreement and in the policies of ASA, and ASA is willing to guarantee the payment of principal and
interest in the event of the borrower’s default of repayment in accordance with the terms and
conditions set forth herein.

     NOW THEREFORE, in consideration of the mutual covenants contained herein, ASA and LENDER agree
as follows:

Section 1. DEFINITIONS

     These definitions are meant to incorporate and be consistent with the more detailed
definitions within the Federal Family Education Loan Program Regulations located at 34 C.F.R. §
682. et. seq.

     1. “AGREEMENT” – shall mean this GUARANTEE agreement to the extent that LENDER and ASA have
indicated the willingness of each to participate in the programs as evidenced by signature or
initial.

     2. “BORROWER” – shall mean any person or persons executing a promissory note individually or
jointly for the purpose of obtaining funds from LENDER under one of the programs authorized by this
Agreement.

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     3. “DEFAULT” – shall mean the failure of the BORROWER to repay borrowed amounts when due,
and/or the failure of the BORROWER to comply with the terms of the promissory note.

     4. “DUE DILIGENCE” shall mean the utilization by LENDER of policies, practices and procedures
in the origination, servicing and collection of loans which are consistent with LENDER’s policies,
practices and procedures applicable to its other consumer loan and credit portfolios and which
comply with the requirements of federal and state statute and regulation and ASA policies. DUE
DILIGENCE includes, but is not limited to, the remission of guarantee fees to ASA in an amount and
time frame as specified by ASA.

     5. “FEDERAL STUDENT LOAN RESERVE FUND” (referred to as Federal Fund) shall mean the reserve
account maintained by ASA as a source from which to pay insurance claims and to assure LENDER of
the ASA’s ability to perform its commitments to LENDER under this Agreement.

     6. “FORMS” – shall mean such application forms, promissory notes and administrative forms as
are provided by and/or required by ASA for participation in any of the programs authorized by this
AGREEMENT.

     7. “GUARANTEE” – shall mean the guarantee of payment given by ASA to LENDER by which ASA
covenants to pay to LENDER such principal and interest as may be provided by the terms of each
program after being assured that LENDER has exercised DUE DILIGENCE in its origination, servicing
and collection and that the necessary documents have been submitted to ASA in the form required.

     8. “LIMITATION, SUSPENSION OR TERMINATION” – shall mean the restrictions imposed by ASA upon
LENDER’s continued participation in any of the programs authorized by this AGREEMENT. The cause of
such restrictions, the process by which such restrictions may be imposed, and their nature and
scope are set forth in Section 3 of this AGREEMENT.

     9. “SCHOOL” – Shall mean an institution of higher education as that term is defined in section
481 of the ACT and 34 CFR 682.200, whose programs satisfy the definition of “eligible program” in
34 CFR 668 and which has in effect a current agreement with the Secretary under 34 CFR 682.600.

     10. “FEDERAL FAMILY EDUCATION LOAN PROGRAM” – shall mean the Federal Stafford Loan, Federal
PLUS Loan, Federal Supplementary Loans for Students, Federal Consolidation Loan and other federal
education loan programs administered by ASA.

	 	 	 
	Section 2.

	 	TERMS AND CONDITIONS OF LOANS ORIGINATED AND HELD UNDER THE FEDERAL FAMILY EDUCATION LOAN PROGRAM ADMINISTERED BY ASA

     1. Statutes governing the FEDERAL FAMILY EDUCATION LOAN PROGRAM are enacted as Part B of Title
IV of The Higher Education Act of 1965, as amended (20 United States Code Section 1071 et seq.).
Regulations affecting program administration are adopted by

-2-

 

the Secretary of the United States
Department of Education and are published in the Code of Federal Regulations. Proposed revisions
to such Regulations are published in the Federal Register.

     2. ASA participates in the FEDERAL FAMILY EDUCATION LOAN PROGRAM as a private nonprofit
guarantee agency pursuant to contractual agreements with the United States Department of Education.
These agreements confer eligibility upon BORROWERS to receive full or partial interest subsidy,
upon lenders to receive interest and special allowance payments and upon ASA to receive insurance
and reinsurance payments in the event of death, disability, bankruptcy, closed school, false
certification or DEFAULT. ASA hereby represents and covenants that it will structure and operate
its programs in such a manner as to preserve to the full extent possible the benefits of these
federal agreements.

     3. LENDER covenants that it will comply with all applicable requirements of federal and state
statutes and regulations and with all requirements and policies of ASA. Furthermore, LENDER will
administer the FEDERAL FAMILY EDUCATION LOAN PROGRAM in conformity with sound lending practices and
standards of DUE DILIGENCE as applied to the programs.

     4. In its administration of the FEDERAL FAMILY EDUCATION LOAN PROGRAM, LENDER shall utilize
forms approved and distributed by ASA and/or by the United States Department of Education. LENDER
will also be authorized to collect and shall collect such fees as may be required by the BORROWER,
by ASA, or the United States Department of Education, and shall apply the payment or allocation of
such fees as directed.

     5. In the event of the DEFAULT, death, total and permanent disability, closed school, false
certification or discharge in bankruptcy of a BORROWER, as such events are defined in applicable
law and regulation, ASA will accept a claim for payment upon its GUARANTEE and, if satisfied that
the loan is based on an enforceable note and that standards of DUE DILIGENCE have been met, make
payment to LENDER in an amount equal to the outstanding and unpaid principal amount plus interest
accrued since the date of last payment or maturity to the date of payment by ASA, to the extent
that such interest does not exceed the maximum number of days authorized by ASA or federal law and
regulations.

     6. LENDER agrees that it will prepare and make available such reports or other information as
may be reasonably required by ASA or the United States Department of Education and further, that
independent auditors or authorized representatives of ASA or such Department shall have access to
the operations and financial records and procedures pertaining to the Stafford, PLUS, SLS and
Consolidation programs or any other federal program administered by ASA.

     7. If LENDER shall violate, or fail to comply with, any of the terms of this Agreement, it
shall become liable to ASA in an amount equal to the damages sustained by ASA by virtue of such
violation or failure to comply. ASA may, as its option, and in addition to any
other remedies available to it at law or in equity, invoke and apply the provisions of Section
3 of this AGREEMENT relating to LIMITATION, SUSPENSION OR TERMINATION.

-3-

 

Section 3. LIMITATION, SUSPENSION OR TERMINATION OF LENDER PARTICIPATION

     1. As a lender participating in the FEDERAL EDUCATION LOAN PROGRAM administered by ASA, LENDER
shall administer its loan portfolio(s) in accordance with applicable federal and state law and
regulations, with ASA policies, and with sound lending practices.

     2. In the event that ASA determines that LENDER’s administration of such programs does not
satisfy the required levels of DUE DILIGENCE or that the DEFAULT or delinquency rate of loans
originated or held by LENDER is excessive, ASA will inform LENDER of the noted deficiencies and of
corrective actions required in order to continue participation.

     3. LENDER shall implement the recommended corrective action and/or take other action to
rectify each of the administrative deficiencies noted by ASA within the time specified by ASA or as
agreed to by LENDER and ASA.

     4. In the event that LENDER fails to rectify such deficiencies in a timely and prudent manner,
ASA may, in its discretion, impose LIMITATION, SUSPENSION OR TERMINATION sanctions as it may deem
appropriate, after affording LENDER an opportunity to respond. However, ASA may impose such
sanctions on LENDER without a hearing if ASA determines that emergency action is necessary in order
to prevent monetary loss to ASA and the federal government. LENDER may appeal any LIMITATION,
SUSPENSION OR TERMINATION sanctions by ASA.

     5. LIMITATION sanctions provide for the continued participation of LENDER but subject to such
special conditions, procedures or timetables as may be established by ASA.

     6. SUSPENSION sanctions include the temporary termination of LENDER’s eligibility for
participation for a specified period of time or until LENDER satisfies the standards established by
ASA to remove the SUSPENSION.

     7. TERMINATION sanctions may be invoked by ASA where the administrative deficiencies are
substantial and where LENDER has not taken timely corrective action. TERMINATION of LENDER’s
eligibility for participation will be effected after having provided LENDER with an opportunity for
a hearing. Restoration of LENDER’s eligibility for participation can be accomplished only upon
submission of a new application for such participation and ASA’s approval for such application
after consideration of eligibility standards then required by the Board of Directors.

     Any LIMITATION, SUSPENSION OR TERMINATION hereunder shall be prospective only and shall not
affect the obligations of the parties hereto which were incurred prior to such LIMITATION,
SUSPENSION OR TERMINATION.

     The AGREEMENT may be modified only be written agreement of the parties hereto. Any waiver,
modification or failure to insist upon the strict performance of the duties of either

-4-

 

party to this AGREEMENT shall not be construed as a waiver or modification generally or of
such particular condition in a subsequent instance.

     This AGREEMENT may be terminated by either party at anytime by providing at least thirty (30)
days’ written notice of such termination to the other party hereto. Such termination, however,
shall be prospective only and shall not affect the obligations of the parties hereto, which were
incurred prior to such termination.

     IN WITNESS WHEREOF, ASA and LENDER have caused this instrument to be executed by duly
authorized officers and affixed with the corporate seal of each as of the day and year indicated
below.

     By checking below, LENDER signifies its intent to participate in the programs checked.

	 	   	[x] Participation in the Federal (Subsidized and Unsubsidized) Stafford
Loan Programs
	 
	 	   	[x] Participation in the Federal PLUS Loan Program
	 
	 	   	[x] Participation in the Federal Consolidation Loan Program
	 
	 	   	[ ] Participation in the Federal Loan Rehabilitation Program
	 
	 	   	[ ] Participation in the ASA Lender of Last Resort Program

MASSACHUSETTS HIGHER EDUCATION ASSISTANCE CORPORATION

doing business as AMERICAN STUDENT ASSISTANCE

	 	 	 	 	 
	By:

	 	/s/ Paul C. Combe
	 	 
	

	 	 	 	 
	Printed Name: Paul C. Combe	 	 
	Title: President	 	 
	Date: 11/18/02	 	 
	Witness:	 	 

	 	 	 
	LENDER:

	 	The Bank of New York Trust Company of Florida, N.A.,
as eligible lender trustee for Consolidation Loan Funding, LLC
	 
	 	 
	

	 	10161 Centurion Parkway

Jacksonville, FL 32256

	 	 	 	 	 	 	 
	By:	 	/s/ George W. Bemister  
	 	 	 	 	 
	Printed Name: George W. Bemister	 	 
	Title: Assistant Vice President	 	 
	Date: 11/20/02	 	 
	Witness: /s/ William Cardozo	 	 
	

	 	 	 	 	 	 
	EIN #: 59 228 3428	 	 
	Lender Code: 833873	 	 

-5-

 

CERTIFICATE OF COMPREHENSIVE INSURANCE

For Consolidation Loans made in accordance with The Federal Family Education Loan Program (“FFELP”)
of the Higher Education Act of 1965, as amended and formerly known as the Guaranteed Student Loan
programs.

Massachusetts Higher Education Assistance Corporation doing business as American Student Assistance
(ASA), herein referred to as the “Agency,” authorizes that all Consolidation Loans made in
conformity with the requirements of the FFELP of the Higher Education Act of 1965, as amended
(“Act”), by The Bank of New York Trust Company of Florida, N.A., as eligible lender trustee for
Consolidation Loan Funding, LLC, solely in the capacity of eligible lender trustee and without
recourse to assets held by the eligible lender other than those held in trust for Consolidation
Loan Funding, LLC, herein referred to as the “Lender,” are fully insured against loss of principal
and interest by the Agency, provided:

	 	1.  	The Lender has determined to its satisfaction, in accordance with reasonable
and prudent business practices, that for each loan being consolidated –

	 	(a)  	the loan is a legal, valid, and binding obligation of the
borrower:
	 
	 	(b)  	such loan was made and serviced in compliance with applicable
laws and regulations; and
	 
	 	(c)  	the insurance on such loan is in full force and effect.

	 	2.  	The Consolidation Loan(s) are made on or after July 1, 1987, unless limited by
the Act.
	 
	 	3.  	The total unpaid principal amount of all Consolidation Loans made under this
certificate is equal to or less than $2 Billion.
	 
	 	4.  	If the Lender, prior to expiration of this certification (which occurs upon
reaching of the dollar limit), no longer proposes to make Consolidation Loans, the
Lender shall notify the Agency so that the certificate may be terminated. Such
termination shall not affect the insurance on any Consolidation Loan made prior to such
termination.
	 
	 	5.  	The Lender’s loan consolidation program practices are subject to the Agency’s
FFELP Lender Participation Limitation, Suspension or Termination procedures. The
insurance on any loan(s) made under this certificate prior to the Agency’s imposition
of a limitation, suspension or termination action shall not be affected by such action.
	 
	 	6.  	The Lender complies with the Agency’s Federal Consolidation Loan policies and
procedures. (As published in the Common Manual and/or provided by the guarantor).
	 
	 	7.  	The Lender notifies the Agency of the alternative repayment terms which will be
offered by the Lender.

-6-

 

Please note that the Agency reserves the right to change or modify the total amount of insurance
granted to the Lender under this Certificate, provided the Agency so notifies the Lender promptly
thereafter.

The Agency’s office at 330 Stuart Street, Boston, Massachusetts 02116 is designated as the office
which will process claims and perform other related administrative functions.

	 	 	 	 	 
	/s/ Paul C. Combe 	 	    11/18/02	 	 
	President 	 	Date 	
	 	 

-7-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]