Document:

exv10w25

 

EXHIBIT 10.25

LENDER AGREEMENT FOR GUARANTEE OF

STUDENT LOANS WITH FEDERAL REINSURANCE

(Originating Lender)

     For loans eligible for guarantee under the Higher Education Act of 1965, as amended (the
“Act”).

     WHEREAS, The Bank of New York Trust Company of Florida, N.A. solely in its capacity as
eligible lender trustee (Lender ID number 833873) for Consolidation Loan Funding, LLC (“Lender”)
and without recourse to assets held by the eligible lender trustee other than those held in trust
for Consolidation Loan Funding, LLC, wishes to secure loan guarantees with the Nebraska Student
Loan Program, Inc. (“NSLP”) on federal student loans made to “Eligible Borrowers” (as hereinafter
defined) at eligible institutions pursuant to the Act; and

     WHEREAS, Lender represents that it is an eligible lender under the provisions of the Act and
the “Program Rules” (as hereinafter defined).

     NOW, THEREFORE, it is mutually agreed that:

	1.  	The following words and terms shall have the following meanings unless otherwise herein
provided or unless the context or use clearly indicates another or differing meaning or
intent:

	 	(a)  	“Act” shall mean Title IV, Part B, of the Higher Education Act of 1965, as
amended, the regulations promulgated thereunder, and all official interpretations of
federal requirements as issued by ED;
	 
	 	(b)  	“Agreement” shall mean this Agreement;
	 
	 	(c)  	“Eligible Borrower” shall mean a borrower as defined by the Act;
	 
	 	(d)  	“Eligible Loan” shall mean a loan as defined by the Act; and
	 
	 	(e)  	“Program Rules” shall include, but are not limited to, the Act, the Common
Manual – Unified Student Loan Policy, NSLP Operations Alerts and NSLP correspondent
materials. All such Program Rules, as amended from time to time, are specifically
Incorporated into and made a part of this Agreement.

	2.  	NSLP shall guarantee Eligible Loans made by the Lender, which have been made in conformance
with the Program Rules. For each twelve month term commencing with the date of this Agreement
and continuing with the anniversary date thereof for all years thereafter, NSLP shall provide
guarantee and related services to Lender for not more than $500,000,000 principal amount of
Eligible Loans made to students attending institutions of higher learning with an expected
attendance/graduation duration of at least four (4) years, and not more than $750,000
principal amount of Eligible Loans made to students attending institutions with an expected
attendance/graduation duration of less than four (4) years. NSLP shall review the principal
amount of Eligible Loans on a quarterly basis to determine compliance with respect to this
provision.

	3.  	NSLP and the Lender agree that upon the default of a promissory note and the filing of a
claim on such promissory note by the Lender, such claim shall be processed as provided for in
the Program Rules.

	4.  	NSLP agrees to maintain reserves as defined by the Act for the payment of claims/purchase of
loans pursuant to the reinsurance contracts with the Secretary of Education.

	 	 	 
	Lender Agreement for Guarantee of Student Loans with Federal Reinsurance
 (Originating Lender) 10/96

	 	Page 1 of 3

 

 

	5.  	Lender shall make an Eligible Loan only to those eligible Borrowers permitted by the Program
Rules.

	6.  	The Lender shall determine that each Eligible Loan obligation is a legal, valid and binding
obligation of the Eligible Borrower, and shall engage in the requisite due diligence relative
to the granting, servicing, and collection of Eligible Loans as required by the Program Rules.
Lender shall document in the loan file the basis on which it made its determination and due
diligence and retain the same for the term required by the Program Rules. Lender acknowledges
that NSLP has no responsibility to review determinations or due diligence activity of Lender.

	7.  	Lender shall notify NSLP in writing if any servicing or management of the Lender’s Eligible
Loans guaranteed by NSLP is done by an entity other than the lender of record.

	8.  	Each Eligible Loan originated by Lender has been made at an interest rate not otherwise
prohibited by the Act.
	 
	9.  	Each Eligible Loan shall be subject to repayment on the terms stated in the Act.

	10.  	The Lender agrees to remit to NSLP any fees permitted by the Act and the Program Rules or as
otherwise required by NSLP.

	11.  	NSLP and the Lender agree that the guarantee on any particular Eligible Loan shall be
effective for the term of that Eligible Loan on the effective date determined in accordance
with the Program Rules.

	12.  	In making Eligible Loans to Eligible Borrowers, the Lender agrees to comply with all
applicable federal and state laws in addition to (and not in conflict with) the Program Rules.

	13.  	In the event the Lender, its servicing agent, any transferee or subsequent servicing agent
shall violate or fail to comply with the Program Rules with respect to any Eligible Loan,
Lender shall assume liability for and agrees to indemnify and keep harmless NSLP, its
successors, assigns, directors, officers and agents from and against any and all liabilities,
losses, damages, penalties, claims, actions, expenses and disbursements, including legal fees
and expenses, imposed on, incurred by or asserted against them or any of them, in any way
relating to or arising out of such violation or failure to comply with the Program Rules,
irrespective of whether NSLP shall have purchased such Eligible Loans from the Lender.

	14.  	The Lender shall maintain for all Eligible Loans guaranteed a system of records and accounts,
shall afford access thereto, and shall furnish such periodic and separate reports as may
reasonably be required by ED and NSLP under the Program Rules. For Eligible Loans paid in full
or otherwise discharged, the records shall be retained by the Lender as required by the
Program Rules.

	15.  	NSLP shall guarantee Eligible Loans without regard to sex, age, race, color, religion,
handicapped status, income, national origin, or any other basis prohibited by applicable law.
The Lender will not discriminate in the making of loans to Eligible Borrowers or in the
treatment of such Eligible Borrowers on any prohibited basis.

	16.  	This Agreement shall inure to the benefit of and be binding upon NSLP, the Lender and their
respective successors; provided, however, this Agreement may not be assigned by either party
hereto, either in whole or in part, without the prior written consent of the other party,
which consent may not be unreasonably withheld.

	17.  	Subject to the prior written approval of the Lender, which approval shall not be unreasonably
withheld, NSLP may transfer Eligible Loans which are guaranteed to any other guarantor which

	 	 	 
	Lender Agreement for Guarantee of Student Loans with Federal Reinsurance
 (Originating Lender) 10/96

	 	Page 2 of 3

 

 

	   	has given NSLP its prior written approval of such transfer. Lender may likewise transfer
Eligible Loans to another NSLP-approved lender or eligible holder, and shall notify NSLP of
any proposed transfer of NSLP guaranteed loans by sale, payoff or pledge to such approved
lender or eligible holder.

	18.  	This Agreement may be terminated by the Lender upon ninety (90) days advance written notice
to NSLP. The Lender is required to give NSLP ninety (90) days advance written notice of
termination if the Lender intends to cease making Eligible Loans under this Agreement. This
Agreement may be terminated, suspended or limited by NSLP in any manner provided for in the
Program Rules. Such termination, suspension or limitation shall not affect the coverage of
Eligible Loans previously guaranteed.
	 
	   	In addition, this Agreement may be terminated by NSLP upon ninety (90) days written notice
to the Lender in the event NSLP intends to cease guaranteeing Eligible Loans of Lender.
Upon receipt of the termination notice, Lender shall immediately cease origination and
disbursement of all loans contemplated under this Agreement. Lender will have ninety (90)
days from receipt of the termination notice to obtain a guarantee from NSLP on all Eligible
Loans originated and disbursed prior to receipt of the termination notice.

	19.  	Lender agrees to indemnify and hold harmless NSLP from any obligations arising out of or
related to Eligible Loans not originated and serviced in the manner required by the Act and
the Program Rules.

	20.  	This Agreement shall be governed by the laws of the State of Nebraska, except to the extent
federal law and/or regulations apply to the subject matter hereof. This Agreement shall not be
varied by oral agreement but only by an instrument in writing duly executed by both parties.
Any legal or equitable judicial proceeding arising out of or related to this Agreement shall
be heard solely in the courts located in the City of Lincoln, Lancaster County, Nebraska, as
the forum of choice of the parties to this Agreement. This Agreement represents the entire
understanding of the parties with respect to the subject matter and supersedes all other
communications between the parties.
	 
	   	This Agreement is made this 12th day of March, 2002.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Lender: Consolidation Loan
Funding, LLC by its eligible
Lender trustee, The Bank of New
York Trust Company of Florida,
N.A.
	 	 	 	 	 	 	Lender ID #:
        833873
	ATTEST:	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	   /s/ Vicki B. Bellamy
	 	 	 	By:
	 	   /s/ Tricia Heintz	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   Assistant Treasurer
	 	 	 	Title:
	 	   Vice President	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature Date: March 7, 2002
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	NEBRASKA STUDENT LOAN PROGRAM, INC.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	   /s/ Shaunda L. Poppe
	 	 	 	By:
	 	   /s/ Randy Heesacker	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   Supervisor, Admin. Services
	 	 	 	Title:
	 	   Executive Vice President	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature Date: 3-12-02
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Lender Agreement for Guarantee of Student Loans with Federal Reinsurance
 (Originating Lender) 10/96

	 	Page 3 of 3

 

 

NSLP PROCESSING AGREEMENT

     The Bank of New York Trust Company of Florida, N.A. solely in its capacity as eligible
lender trustee (Lender ID number 833873) for Consolidation Loan Funding, LLC (“Lender”) and without
recourse to assets held by the eligible lender trustee other than those held in trust for
Consolidation Loan Funding, LLC, hereinafter referred to as (“Lender”), hereby provides the
following authorization to the Nebraska Student Loan Program, Inc. (hereinafter referred to as
“NSLP”). The Lender has executed the “Nebraska Student Loan Program, Inc. Lender Agreement for
Guarantee of Educational Loans with Federal Reinsurance” and is an approved lender with the
Department of Education (“ED”).

     The Lender agrees to expedite loan guarantee processing by allowing schools or borrowers to
submit applications directly to NSLP for guarantee processing without first being submitted to the
Lender. The procedure facilitates the NSLP processing format including submission of paper
applications from the school to NSLP or the electronic transmission of applications from the school
to NSLP and subsequent issuance of the Note of guarantee to the lender, either manually or
electronically.

     The Lender has and retains the authority to approve or disapprove each application processed
by NSLP under the terms of this Agreement. Lender approval is signified by the disbursement of
funds or an Electronic Funds Transfer of borrower educational loan proceeds. This Agreement does
not make NSLP an originator of any loan by processing an application in accordance with this
Agreement.

     This Agreement is not assignable or transferable by either party without prior written
approval from the other. This Agreement can only be amended in writing by both parties. This
Agreement may be terminated or further limited by NSLP in any manner provided for by the Act, the
regulations of NSLP, or the regulations of ED upon 60 days written notice from NSLP to the Lender.

	 	 	 	 	 
	Lender Code: 833873

	 	 	 	NEBRASKA STUDENT LOAN PROGRAM, INC.
	 
	 	 	 	 
	Consolidation Loan Funding, LLC by
its eligible Lender trustee, The Bank
of New York Trust Company of Florida,
N.A.
	 	 	 	 
	 
	 	 	 	 
	    Name of Lender
	 	 	 	 
	 
	 	 	 	 
	    Tricia Heintz/Vice President

	 	 	 	   Rodney A. Langel,
	 

	 	 	 	 
	    Printed/typed Name & Title

	 	 	 	Vice President, Business Development
	 	 	 	 	 
	

	 	 	 	   Printed/typed Name & Title
	 
	 	 	 	 
	   /s/ Tricia Heintz

	 	 	 	   /s/ Rodney A. Langel
	 

	 	 	 	 
	   Signature

	 	 	 	   Signature
	 
	 	 	 	 
	    10161 Centurion Parkway

	 	 	 	   1300 O Street
	 

	 	 	 	 
	    Street Address

	 	 	 	   Street Address
	 
	 	 	 	 
	    Jacksonville, FL 32256

	 	 	 	   Lincoln, NE 68508
	 

	 	 	 	 
	    City, State, Zip Code

	 	 	 	   City, State, Zip Code
	 
	 	 	 	 
	    March 7, 2002
	 	 	 	 
	 	 	 	 	 
	    Date

	 	 	 	   Date

NSLP Processing Agreement 11/01

 

 

LENDER AGREEMENT FOR GUARANTEE OF

STUDENT LOANS WITH FEDERAL REINSURANCE

     For loans eligible for guarantee under the Higher Education Act of 1965, as amended (the
“Act”).

     WHEREAS, The Bank of New York Trust Company of Florida, N.A. solely in this capacity as
eligible lender trustee (Lender ID number 833873) for Consolidation Loan Funding, LLC (“Lender”)
and without recourse to assets held by the eligible lender trustee other than those held in trust
for Consolidation Loan Funding, LLC, wishes to secure loan guarantees with the Nebraska Student
Loan Program, Inc. (“NSLP”) on federal student loans made to “Eligible Borrowers” (as hereinafter
defined) purchased by Lender from eligible institutions pursuant to the Act; and

     WHEREAS, Lender represents that it is an eligible secondary market lender under the provisions
of the Act and the “Program Rules” (as hereinafter defined).

     NOW, THEREFORE, it is mutually agreed that:

	1.  	The following words and terms shall have the following meanings unless otherwise herein
provided or unless the context or use clearly indicates another or differing meaning or
intent:

	 	(a)  	“Act” shall mean Title IV, Part B, of the Higher Education Act of 1965, as
amended, the regulations promulgated thereunder, and all official interpretations of
federal requirements as issued by ED;
	 
	 	(b)  	“Agreement” shall mean this Agreement;
	 
	 	(c)  	“Eligible Borrower” shall mean a borrower as defined by the Act;
	 
	 	(d)  	“Eligible Loan” shall mean a loan as defined by the Act; and
	 
	 	(e)  	“Program Rules” shall include, but are not limited to, the Act, the Common
Manual – Unified Student Loan Policy, NSLP Operations Alerts and NSLP correspondent
materials. All such Program Rules, as amended from time to time, are specifically
incorporated into and made a part of this Agreement.

	2.  	NSLP shall guarantee Eligible Loans held by the Lender which have been acquired in
conformance with the Program Rules. For each twelve-month term commencing with the date of
this Agreement and continuing with the anniversary date thereof for all years thereafter,
Lender shall purchase Eligible Loans in an amount not to exceed $500,000,000. In conjunction
with the purchase of Eligible Loans, NSLP shall provide guarantee and related services to
Lender in conformance with the Act and the Program Rules. NSLP shall review the principal
amount of Eligible Loans on a quarterly basis to determine compliance with respect to this
provision.

	3.  	NSLP and the Lender agree that upon the default of a promissory note and the filing of a
claim on such promissory note by the Lender, such claim shall be processed as provided for in
the Program Rules.

	4.  	NSLP agrees to maintain reserves as defined by the Act-for the payment of claims/purchase of
loans pursuant to the reinsurance contracts with the Secretary of Education.

	5.  	Lender shall only purchase Eligible Loans made by qualified lenders to Eligible Borrowers
permitted by the Program Rules.

	6.  	The Lender shall determine that each Eligible Loan obligation is a legal, valid and binding
obligation of the Eligible Borrower, and shall engage in the requisite due diligence relative
to the

	 	 	 
	Certificate o Guarantee with Respect to Federal Consolidation Loans

	 	Page 1 of 2

 

 

	   	purchase, servicing, and collection of Eligible Loans as required by the Program Rules.
Lender shall document in the loan file the basis on which it made its determination and due
diligence and retain the same for the term required by the Program Rules. Lender
acknowledges that NSLP has no responsibility to review determinations or due diligence
activity of Lender.

	7.  	Lender shall notify NSLP in writing if any servicing or management of the Lender’s Eligible
Loans guaranteed by NSLP is done by an entity other than Lender.

	8.  	Each Eligible Loan purchased by Lender has been made at an interest rate not otherwise
prohibited by the Act.
	 
	9.  	Each Eligible Loan shall be subject to repayment on the terms stated in the Act.

	10.  	The Lender agrees to remit to NSLP any fees permitted by the Act and the Program Rules or as
otherwise required by NSLP.

	11.  	NSLP and the Lender agree that the guarantee on any particular Eligible Loan shall be
effective for the term of that Eligible Loan on the effective date determined in accordance
with the Program Rules.

	12.  	In purchasing and servicing Eligible Loans from Eligible Borrowers, the Lender agrees to
comply with all applicable federal and state laws in addition to (and not in conflict with)
the Program Rules.

	13.  	In the event the Lender, its servicing agent, any prior transferor, transferees or subsequent
servicing agent shall violate or fail to comply with the Program Rules with respect to any
Eligible Loan, Lender shall assume liability for and agrees to indemnify and keep harmless
NSLP, its successors, assigns, directors, officers and agents from and against any and all
liabilities, losses, damages, penalties, claims, actions, expenses and disbursements,
including legal fees and expenses, imposed on, incurred by or asserted against them or any of
them, in any way relating to or arising out of such violation or failure to comply with the
Program Rules, irrespective of whether NSLP shall have purchased such Eligible Loans from the
Lender.

	14.  	The Lender shall maintain for all Eligible Loans guaranteed a system of records and accounts,
shall afford access thereto, and shall furnish such periodic and separate reports as may
reasonably be required by the ED and NSLP under the Program Rules. For Eligible Loans paid in
full or otherwise discharged, the records shall be retained by the Lender as required by the
Program Rules.

	15.  	NSLP shall guarantee Eligible Loans without regard to sex, age, race, color, religion,
handicapped status, income, national origin, or any other basis prohibited by applicable law.
The Lender will not discriminate in the acquisition of Eligible Loans from originating lenders
or in the treatment of Eligible Borrowers on any prohibited basis.

	16.  	This Agreement shall inure to the benefit of and be binding upon NSLP, the Lender and their
respective successors; provided, however, this Agreement may not be assigned by either party
hereto, either in whole or in part, without the prior written consent of the other party,
which consent may not be unreasonably withheld.

	17.  	Subject to the prior written approval of the Lender, which approval shall not be unreasonably
withheld, NSLP may transfer Eligible Loans which are guaranteed to any other guarantor which
has given NSLP its prior written approval of such transfer. Lender may likewise transfer
Eligible Loans to another NSLP-approved lender or eligible holder, and shall notify NSLP of
any proposed transfer of NSLP guaranteed loans by sale, payoff or pledge to such approved
lender or eligible holder.

	 	 	 
	Certificate o Guarantee with Respect to Federal Consolidation Loans

	 	Page 2 of 2

 

 

	18.  	This Agreement may be terminated by the Lender upon ninety (90) days advance written notice
to NSLP. The Lender is required to give NSLP ninety (90) days advance written notice of
termination if the Lender intends to cease making Eligible Loans under this Agreement. This
Agreement may be terminated, suspended or limited by NSLP in any manner provided for in the
Program Rules. Such termination, suspension or limitation shall not affect the coverage of
Eligible Loans previously guaranteed.
	 
	   	In addition, this Agreement may be terminated by NSLP upon ninety (90) days written notice
to the Lender in the event NSLP intends to cease guaranteeing Eligible Loans of Lender.
Lender will have ninety (90) days from receipt of the termination notice to obtain a
guarantee from NSLP on all Eligible Loans acquired prior to receipt of the termination
notice.

	19.  	Lender agrees to indemnify and hold harmless NSLP from any obligations arising out of or
related to Eligible Loans not originated, acquired or serviced in the manner required by the
Act and the Program Rules.

	20.  	This Agreement shall be governed by the laws of the State of Nebraska, except to the extent
federal law and/or regulations apply to the subject matter hereof. This Agreement shall not be
varied by oral agreement but only by an instrument in writing duly executed by both parties.
Any legal or equitable judicial proceeding arising out of or related to this Agreement shall
be heard solely in the courts located in the City of Lincoln, Lancaster County, Nebraska, as
the forum of choice of the parties to this Agreement. This Agreement represents the entire
understanding of the parties with respect to the subject matter and supersedes all other
communications between the parties.

     This
Agreement is made this  12th day of March, 2002.

Lender Corporate Name:  Consolidation Loan Funding, LLC by its eligible Lender trustee, The
Bank of New York Trust Company of Florida, N.A.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Lender ID #:
833873
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	   /s/ Vicki B. Bellamy
	 	 	 	By:
	 	   /s/ Tricia Heintz	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   Assistant Treasurer
	 	 	 	Title:
	 	   Vice President	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature Date: March 7, 2002
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NEBRASKA STUDENT LOAN PROGRAM, INC.	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	   /s/ Shaunda L. Poppe
	 	 	 	By:
	 	   /s/ Randy Heesacker	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   Supervisor, Admin. Services
	 	 	 	Title:
	 	   Executive Vice President	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature Date: March 7, 2002
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Certificate o Guarantee with Respect to Federal Consolidation Loans

	 	Page 3 of 2

 

 

NEBRASKA STUDENT LOAN PROGRAM, INC.

Lincoln, Nebraska

Certificate of Guarantee

with Respect to

Federal Consolidation Loans

U.S. Department of Education Lender ID #: 833873

     WHEREAS, the Nebraska Student Loan Program, Inc. (NSLP), located in Lincoln, Nebraska and The
Bank of New York Trust company of Florida, N.A., located at 10161 Centurion Parkway, Jacksonville,
FL 32256, (the “Lender”) have entered into a Lender Agreement for Guarantee of Federal
Consolidation Loans with Federal Reinsurance dated 3-12-02 (the “Agreement”), and

     WHEREAS, under the Agreement, the Lender has agreed to make Federal Consolidation Loans for
the purpose of discharging Eligible Loans of Eligible Borrowers; and

     WHEREAS, NSLP has agreed that such Federal Consolidation Loans, if made by Lender in
accordance with the terms of the Agreement, will be guaranteed by NSLP.

     NOW, THEREFORE, to evidence its intent to guarantee, NSLP issues this Certificate of Guarantee
(“Certificate”) upon the following terms and conditions:

	1.  	All capitalized terms in this Certificate, not otherwise defined herein, shall have the same
meaning as those capitalized terms defined in the Agreement. Such capitalized terms and
definitions are specifically incorporated by reference in this Certificate.
	 
	2.  	This Certificate shall be effective with respect to Federal Consolidation Loans made by
Lender, from the date of the Agreement, until one of the parties terminates the Agreement.
	 
	3.  	Federal Consolidation Loans guaranteed under this Agreement and this Certificate shall carry
terms and conditions as required by the Act and Program Rules.
	 
	4.  	Repayment of each Federal Consolidation loan will be required by the Act and Program Rules.
	 
	5.  	This Certificate shall be cancelled and be of no further effect in the event that the
Agreement is terminated by either party in accordance with the terms of the Agreement.
	 
	6.  	This Certificate shall be cancelled by NSLP, either finally or temporarily or the
effectiveness of this Certificate may be limited by NSLP, as appropriate, in accordance with
the terms of the Act and Program Rules.
	 
	7.  	No cancellation or limitation of this Certificate shall affect the guarantee coverage of
Federal Consolidation Loans made prior to the effective date of such cancellation or limitation.
	 
	8.  	Claims under this Certificate shall be made to NSLP as described in the Act and Program
Rules.
	 
	9.  	The Lender’s right to make a claim under this Certificate may be assigned to a subsequent
owner/transferee of a Federal Consolidation Loan guaranteed under this Certificate.

	 	 	 
	Certificate o Guarantee with Respect to Federal Consolidation Loans

	 	Page 1 of 2

 

 

	   	However, with respect to a Federal Consolidation Loan transferred, any such transferee must
be an Eligible Lender, a signatory to the NSLP Lender Agreement, and bound by the terms of
the Agreement and this Certificate prior to the date of transfer of ownership.

	 	 	 
	

	 	Dated: 3-13-03
	 
	 	 
	

	 	NEBRASKA STUDENT LOAN PROGRAM, INC.
	 
	 	 
	

	 	Approved by:
	 
	 	 
	

	 	   /s/ Randy Heesacker
	

	 	 
	

	 	Name
	 
	 	 
	

	 	   Executive Vice President
	

	 	 
	

	 	Title

	 	 	 
	Certificate o Guarantee with Respect to Federal Consolidation Loans

	 	Page 2 of 2

 

 

LENDER AGREEMENT FOR GUARANTEE OF

FEDERAL CONSOLIDATION LOANS WITH FEDERAL REINSURANCE

     For loans eligible for guarantee under the Higher Education Act of 1965, as amended (the
“Act”).

     WHEREAS, The Bank of New York Trust Company of Florida, N.A., solely in this capacity as
eligible lender trustee (Lender ID number 833873) for Consolidation Loan Funding, LLC (“Lender”)
and without recourse to assets held by the eligible lender trustee other than those held in trust
for Consolidation Loan Funding, LLC, wishes to secure loan guarantees with the Nebraska Student
Loan Program, Inc. (“NSLP”) on federal consolidation loans made to “Eligible Borrowers” (as
hereinafter defined) at eligible institutions pursuant to the Act; and

     WHEREAS, Lender represents that it is an “eligible lender” under the provisions of the Act and
the “Program Rules” (as hereinafter defined); and

     WHEREAS, Lender has previously executed the NSLP Lender Agreement for Guarantee of Student
Loans with Federal Reinsurance.

     NOW, THEREFORE, it is mutually agreed that:

	1.  	The following words and terms shall have the following meanings unless otherwise herein
provided or unless that context or use clearly indicates another or differing meaning or
intent;

	 	(a)  	“Act” shall mean Title IV, Part B, of the Higher Education Act of 1965, as
amended, the regulations promulgated thereunder, and all official interpretations of
federal requirements as issued by the ED;
	 
	 	(b)  	“Agreement” shall mean this Agreement;
	 
	 	(c)  	“Eligible Borrower” shall mean a borrower as defined by the Act; “Eligible
Loan” shall mean a loan as defined by the Act;
	 
	 	(e)  	“Federal Consolidation Loan” shall mean a student loan which has been
consolidated pursuant to and as defined by the Act;
	 
	 	(f)  	“Initial Principal Amount” shall mean the principal amount of a Federal
Consolidation Loan when made; and
	 
	 	(g)  	“Program Rules” shall include, but are not limited to, the Act, all
correspondence, the Common Manual –- Unified Student Loan Policy, NSLP Operations
Alerts and NSLP correspondent materials. All such Program Rules, as amended from time
to time, are specifically incorporated into and made a part of this Agreement.

	2.  	NSLP shall guarantee Federal Consolidation Loans made by the Lender which have been made in
conformance with the Program Rules.

	3.  	NSLP and the Lender agree that upon the default with respect to a promissory note and the
filing of a claim on such promissory note by the Lender, such claim shall be processed as
provided for in the Program Rules.

	4.  	NSLP agrees to maintain reserves as defined by the Act for the payment of claims/purchase of
loans pursuant to the reinsurance contracts with the Secretary of Education.

	5.  	Lender shall make a Federal Consolidation Loan only to discharge Eligible Loans upon an
Eligible Borrower’s request.

	 	 	 
	Lender Agreement for Guarantee of Federal Consolidation Loans with Federal 
Reinsurance 7/96

	 	Page 1 of 4

 

 

	6.  	Lender shall make a Federal Consolidation Loan only to those Eligible Borrowers permitted by
the Program Rules.

	7.  	With respect to each Federal Consolidation Loan, the Lender shall determine as to each
Eligible Loan obligation to be consolidated that each obligation:

	 	(a)  	is a legal, valid and binding obligation of the Eligible Borrower;
	 
	 	(b)  	was made and has been continuously serviced in accordance with applicable
laws and regulations and, if guaranteed, requirements of the guarantor;
	 
	 	(c)  	each underlying loan is currently guaranteed under the Act as of the date of
the consolidation; and
	 
	 	(d)  	is not in default status as defined under the Act or the Program Rules.

	   	Lender shall document in the loan file the basis on which it made its determination and
retain that documentation for the term required by the Program Rules. Lender acknowledges
that NSLP has no responsibility to review such determinations of Lender.
	 
	8.  	Unless otherwise required by the Act, each Federal Consolidation Loan shall be made in a
principal amount, which is equal to the sum of the unpaid principal and accrued unpaid
interest and late charges of the Eligible Loans to be consolidated. The proceeds of each
Federal Consolidation Loan will be paid to the holder of each loan to be consolidated to
discharge the liability on such loans.
	 
	9.  	Each Federal Consolidation Loan shall be made at the interest rate designated by the Act.
	 
	10.  	Each Federal Consolidation Loan shall be subject to repayment on the terms stated in the Act.
	 
	11.  	The Lender agrees to remit to NSLP any fees permitted by the Act and required by NSLP.

	12.  	NSLP and the Lender agree that the guarantee on any particular Federal Consolidation Loan
shall be effective for the term of that Federal Consolidation Loan determined in accordance
with the Program Rules, the effective date beginning on the date of receipt by NSLP of any fee
with respect to that Federal Consolidation Loan or, if no fee is permitted or required,
beginning on the date of disbursement by Lender of that Federal Consolidation Loan.

	13.  	In making Federal Consolidation Loans to Eligible Borrowers, the Lender agrees to comply with
all applicable federal and state laws in addition to (and not in conflict with) the Program
Rules.

	14.  	The Lender agrees to notify NSLP in writing within sixty (60) days from the date that each
Federal Consolidation Loan is made.

	15.  	The Lender shall maintain for all Federal Consolidation Loans guaranteed a system of records
and accounts, shall afford access thereto, and shall furnish such periodic and separate
reports as may reasonably be required by the ED and NSLP under the Program Rules. For Federal
Consolidation Loans paid in full or otherwise discharged, the records shall be retained by the
Lender as required by the Program Rules.

	16.  	NSLP shall guarantee Federal Consolidation Loans without regard to sex, age, race, color,
religion, handicapped status, income, national origin, or any other basis prohibited by
applicable law. The Lender will not discriminate in the making of loans to Eligible Borrowers
or in the treatment of such Eligible Borrowers on any prohibited basis.

	 	 	 
	Lender Agreement for Guarantee of Federal Consolidation Loans with Federal 
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	 	Page 2 of 4

 

 

	17.  	This Agreement shall inure to the benefit of and be binding upon NSLP, the Lender and their
respective successors; provided, however, that this Agreement may not be assigned by either
party hereto, either in whole or in part, without the prior written consent of the other
party, which consent may not be unreasonably withheld.

	18.  	Subject to the prior written approval of the Lender, which approval shall not be unreasonably
withheld, NSLP may transfer Federal Consolidation Loans which are guaranteed to any other
guarantor which has given NSLP its prior written approval of such transfer.

	19.  	This Agreement may be terminated by the Lender upon ninety (90) days advance written notice
to NSLP. The Lender is required to give NSLP ninety (90) days advance written notice of
termination if the Lender intends to cease making Federal Consolidation Loans under this
Agreement. This Agreement may be terminated, suspended or limited by NSLP in any manner
provided for in the Program Rules. Such termination, suspension or limitation shall not affect
the coverage of Federal Consolidation Loans previously guaranteed.
	 
	   	In addition, this Agreement may be terminated by NSLP upon ninety (90) days written notice
to the Lender, in the event that NSLP intends to cease guaranteeing Federal Consolidation
Loans of Lender. Upon receipt of the termination notice, Lender shall immediately cease
origination and disbursement of all Consolidation Loans. Lender will have ninety (90) days
from receipt of the termination notice to obtain a guarantee from NSLP on all Consolidation
Loans originated and disbursed prior to receipt of the termination notice.

	20.  	Lender agrees to indemnify and hold harmless NSLP from any obligations arising out of or
related to Federal Consolidation Loans not originated and serviced in the manner required by
the Act and the Program Rules.

	21.  	This Agreement shall be governed by the laws of the State of Nebraska, except to the extent
federal law and/or regulations apply to the subject matter hereof. This Agreement shall not be
varied by oral agreement but only by an instrument in writing duly executed by both parties.
Any legal or equitable judicial proceeding arising out of or related to this Agreement shall
be heard solely in the courts located in the City of Lincoln, Lancaster County, Nebraska, as
the forum of choice of the parties to this Agreement. This Agreement represents the entire
understanding of the parties with respect to the subject matter and supersedes all other
communications between the parties.

	22.  	Nothing contained in this Agreement amends or modifies in any way the Nebraska Student Loan
Program, Inc. Lender Agreement for Guarantee of Student Loans with Federal Reinsurance between
Lender and NSLP, including any addendum or amendment to that agreement.
	 
	   	This Agreement is made this 12th day of March, 2002

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Lender
	 	 	 	 	 	 	Name: Consolidation Loan Funding, LLC by its
eligible Lender trustee, The Bank of New York
Trust Company of Florida, N.A.
	 	 	 	 	 	 	Lender ID #: 833873
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	   /s/ Vicki B. Bellamy
	 	 	 	By:
	 	   /s/ Tricia Heintz	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   Supervisor, Admin. Services
	 	 	 	Title:
	 	   Vice President	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature Date:	  March 7, 2002
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Lender Agreement for Guarantee of Federal Consolidation Loans with Federal 
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	 	Page 3 of 4

 

 

The above contract accepted in Lincoln, Nebraska, this 12th day of March, 2002, by
NSLP, which date is the effective date of this agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	NEBRASKA STUDENT LOAN PROGRAM, INC.
	By:

	 	   /s/ Shaunda L. Poppe
	 	 	 	By:
	 	   /s/ Randy Heesacker	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   Supervisor, Admin. Services
	 	 	 	Title:
	 	   Executive Vice President	 	 	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Lender Agreement for Guarantee of Federal Consolidation Loans with Federal 
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	 	Page 4 of 4exv10w26

 

EXHIBIT 10.26

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 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:
	 	     Richard D. George	 	 	 	 	 	 
	

	 	 	 	 
	 	 	 	 	 	 
	

	 	 	 	Authorized Officer
	 	 	 	Date	 	 

The above Guaranty is hereby accepted this __ day of _____________, 20___________
Exact Corporate Title The Bank of New York Trust Company of Florida, N.A., as eligible lender trustee for Consolidation Loan Funding, LLC
By /s/Tricia Heintz  Title of Officer  Vice
President
Employer Identification Number 592283428 Lender Number 833873

 

 

GREAT LAKES HIGHER
EDUCATION GUARANTY CORPORATION

	 	 	 	 	 	 	 	 	 
	 	R 

	 	 	LENDER ID NUMBER
	 	 	EIN NUMBER	 
	 

Great Lakes Guaranty Activation Request

	1.  	Lender Contact

	 	 	 	 	 	 
	 	NAME

	 	 	 	 
	 	ADDRESS

	 	 	 	 
	 	PHONE
NUMBER

	 	 	FAX NUMBER	 
	 

	2.  	Mailing Address for Guaranty Related Correspondence

	 	 	 	 	 	 
	 	NAME

	 	 	 	 
	 	ADDRESS

	 	 	 	 
	 	PHONE NUMBER

	 	 	FAX
NUMBER

	 
	 

	3.  	Lender Servicer

	 	 	 	 	 	 	 
	

	 	oBy Lender
	 	oBy Great
	 	oLakes Other

	 	 	 
	 	CONTACT
PERSON

	 
	 	PHONE
NUMBER

	 
	 

Servicer

	 	 	 
	 	CODE

	 
	 	NAME

	 
	 	ADDRESS

	 
	 	ADDRESS

	 
	 

	4.  	Loan Types Offered:

	 	 	 
	o All Loan Types
Except Consolidation

	 	o Subsidized/Unsubsidized Only
	 
	 	 
	o Subsidized Only

	 	o PLUS Only

	5.  	Return this form and the enclosed guaranty contracts to the Customer Service Department in
the appropriate area.

Great Lakes Higher Education Guaranty Corporation

	 	 	 	 	 
	Attn: Customer Service

	 	Attn: Customer Service
	 	Attn: Customer Service
	444 Cedar Street, Suite 600

	 	4689 Hilton Corporate Drive
	 	2401 International Lane
	St. Paul, MN 55101-2133

	 	Columbus, OH 43232-4152
	 	Madison, WI 53704-3192

 

 

Agreement With Respect to Making Consolidation Loans

Under Section 428C of the Higher Education Act of 1965

     CONSOLIDATION LOAN FUNDING, LLC, (the “Lender”), as beneficial owner of loans the legal
title to which is held by its Eligible Lender Trustee, The Bank of New York Trust Company of
Florida, N.A., Lender #833873, hereby enters into an agreement with GREAT LAKES HIGHER EDUCATION
GUARANTY CORPORATION (“Guarantor”) for the purpose of making consolidation loans as authorized
under Section 428C of the Higher Education Act of 1965, as amended (the “Act”).

     In the performance of their respective obligations under Section 428C of the Act, the
Guarantor and Lender agree as follows:

	1.  	Lender shall exercise reasonable care and diligence in the making and collection of
consolidation loans, and shall comply with the requirements of Section 428C of the Act,
applicable regulations issued by the U.S. Department of Education, and applicable regulations
issued by the Guarantor.

	2.  	Lender will make a consolidation loan to an eligible borrower (on request of the borrower)
only if the borrower certifies that the borrower has no other application pending for a loan
under Section 428C of the Act; and

	 	(a)  	Lender holds an outstanding loan of that borrower which is selected by the
borrower for consolidation under Section 428C of the Act, except that this clause shall
not apply in the case of a borrower with multiple holders of loans under the Act; or
	 
	 	(b)  	the borrower certifies that the borrower has sought and has been unable to
obtain a consolidation loan with income-sensitive repayment terms from the holders of
the outstanding loans of that borrower (which are so selected for consolidation).

	3.  	Each consolidation loan made by Lender will bear interest, and be subject to repayment, in
accordance with the provisions of Section 428C, subsection (c) of the Act.

	4.  	Each consolidation loan will be made by Lender, notwithstanding any other provision of Part B
of Title IV of the Act limiting the annual or aggregate principal amount for all insured loans
made to a borrower, in an amount

	 	(a)  	which is not less than the minimum amount required for eligibility of the
borrower under Section 428C, subsection (a)(3) of the Act, and
	 
	 	(b)  	which is equal to the sum of unpaid principal and accrued unpaid interest and
late charges of all eligible student loans received by the eligible borrower which are
selected by the borrower for consolidation.

 

 

	5.  	The proceeds of each consolidation loan will be paid by Lender to the holder or holders of
the loans selected for consolidation to discharge the liability on such loans.

	6.  	The Lender shall offer an income-sensitive repayment schedule, established by the Lender in
accordance with the regulations promulgated by the Secretary, to the borrower of any
consolidation loan made by the Lender on or after July 1, 1994.

	7.  	Guarantor shall, following execution of this Agreement, issue to Lender in accordance with
paragraph (b)(2) of Section 428C of the Act a Certificate of Comprehensive Insurance for
Consolidation Loans (“Certificate”). The Certificate shall be effective for the period and
limited to the amount stated therein, each as determined in the sole discretion of the
Guarantor.

	8.  	Lender will reach agreement with the Guarantor for the periodic transmittal to the Guarantor
of appropriate master file data with respect to consolidation loans in addition to the normal
reporting requirements for loans insured under the Federal Family Education Loan Program have
been established by the Guarantor. Lender will have and report master file data with respect
to the separate balances of the particular loans consolidated at the time of consolidation.

	9.  	Section 428(C)(2) of the Act contains references to “other student loans”. For purposes
hereof, “other student loans” shall mean loans made under a public or private student loan
program by an institutional lender to the borrower that (a) are granted exclusively for the
purpose of financing the borrower’s post-secondary education, (b) are set forth in the
application/promissory note signed by the borrower when applying to Lender for a consolidation
loan, and (c) may be verified as having been granted for the stated purpose.

	10.  	The Guarantor acknowledges that if a borrower selects for consolidation one or more loans
made under Section 428B as in effect prior to the enactment of the Higher Education Amendments
of 1986, whether or not owned by Lender, Lender will first refinance such loans at the rate
authorized under Section 427(c)(4) of the Act and will use such rate for purposes of
determining the interest rate on such borrower’s consolidation loan.

	11.  	Lender hereby certifies (a) that loans selected for consolidation are legal, valid, and
binding obligations that were made in compliance with all applicable laws and regulations and
that the insurance on such loans is in fill force and effect, and (b) that the consolidation
loans made by Lender are legal, valid, and binding obligations that were made in compliance
with all applicable laws and regulations. Lender agrees to repurchase from the Guarantor any
consolidation loan insured hereunder (a) for which the Guarantor is denied federal reinsurance
or is required at any time to reimburse the federal government for federal reinsurance
previously paid on a consolidation loan in either case, solely as a result of any failure of
Lender or its servicer to comply with the requirements of paragraph 1 hereof, or (b) in the
event that a consolidation loan is determined to be unenforceable by a court of competent
jurisdiction solely as a result of any action or inaction of Lender or its servicer, provided,
however, that the Guarantor has notified Lender of such denial of federal reinsurance, claim
for reimbursement, or court action

 

 

	   	and has given Lender an opportunity to assist in its resolution. The repurchase price shall
be the amount of the Guarantor’s claim payment to Lender on any such loan.
	 
	12.  	The terms of the Certificate of Comprehensive Insurance for Consolidation Loans are
incorporated herein and made a part hereof as if set forth in their entirety.

	 	 	 	 	 	 	 	 	 
	CONSOLIDATION LOAN FUNDING, LLC,
BY CLF MANAGEMENT, INC., 
MANAGER	 	 	 	GREAT LAKES HIGHER
EDUCATION 
GUARANTY CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	     /s/ Ryan D. Katz
	 	 
	 	By:
	 	   /s/ Richard D. George
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Ryan D. Katz	 	 	 	Name: Richard D. George
	 
	 	 	 	 	 	 	 	 
	Title: President	 	 	 	Title: President & CEO

 

 

	 	 	 
	Effective Date:

	 	March 1, 2002
	Certificate Amount:

	 	$1,000,000,000
	Lender ID No.:

	 	833873

CERTIFICATE OF COMPREHENSIVE INSURANCE FOR CONSOLIDATION LOANS

     WHEREAS, CONSOLIDATION LOAN FUNDING, LLC, (the “Lender”) as beneficial owner of loans the
legal title to which is held by its Eligible Lender Trustee, The Bank of New York Trust Company of
Florida, N.A., wishes to secure insurance on consolidation loans made pursuant to Section 428C of
Title IV, Part B of the Higher Education Act of 1965, as amended, (the “Act”), and

     WHEREAS, the Great Lakes Higher Education Guaranty Corporation (the “Guarantor”) is authorized
by the Act to provide such loan insurance through the issuance of a certificate of comprehensive
insurance coverage under the provisions of Section 428(C)(2) of the Act,

     NOW THEREFORE, to evidence its intent to guarantee, Guarantor does issue, as of the Effective
Date shown above, this Certificate of Comprehensive Insurance (“Certificate”), upon the following
terms and conditions:

	1.  	Within the limits established by the provisions of this certificate and without further
action by the Guarantor, all consolidation loans which are eligible for insurance under the
Act and are made in conformity with Section 428C of the Act and the agreement entered into by
the Guarantor and Lender pursuant to such section of the Act shall, if designated by Lender to
be subject to this certificate, be insured from the time of disbursement against the loss of
interest and principal by the Guarantor.
	 
	   	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 other 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 consolidation loan or any
consolidation loan which consolidates a 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.
	 
	2.  	A consolidation loan will not be insured under this certificate unless Lender has determined,
to its satisfaction, in accordance with reasonable and prudent business practices, for each
loan being consolidated (a) that the loan is a legal, valid and binding obligation of the
borrower; (b) that each such loan was made and serviced in compliance with applicable laws and
regulations; and (c) in the case of loans made under Part B of the Act, that the insurance on
such loan is in full force and effect.

 

 

	3.  	This Certificate shall have effect with respect to Federal Consolidation Loans made by Lender
for the period from the Effective Date shown above until February 28, 2004, provided that the
aggregate Initial Principal Amount of such Federal Consolidation Loans does not exceed the
Certificate Amount shown above and, provided further, that this Certificate shall not have
effect with respect to any Federal Consolidation Loan which has not been made by Lender in
accordance with all of the terms of the Agreement and on a promissory note form provided or
approved by Guarantor.
	 
	4.  	With respect to loans insured under this certificate, Lender shall submit such reports (a) to
the Guarantor as it may reasonably require to carry out its responsibilities under the Act and
(b) to the U. S. Secretary of Education as it may require.
	 
	5.  	All claims submitted by Lender under this certificate will be directed to:

Great Lakes Higher Education Guaranty Corporation

2401 International Lane

Madison, WI 53704

	6.  	All administrative and procedural matters related to loans issued under certificate will be
directed to:

Great Lakes Higher Education Guaranty Corporation

2401 International Lane

Madison, WI 53704

	7.  	Repayment terms offered to borrowers will include both level and graduated payment schedules.
For consolidation loans made after July 1, 1994, income-sensitive repayment schedules shall
be offered in accordance with regulations promulgated by the Secretary. Graduated payment
schedules may provide for an initial period of interest only payments. Loans will be made for
up to the maximum period provided by law and the interest rate will be equal to or less than
the applicable rate.
	 
	8.  	If at any time prior to the expiration of this certificate, Lender no longer proposes to make
consolidation loans insured hereunder, it shall notify the Guarantor and this certificate may
be terminated on a mutually agreed upon date.
	 
	   	No loans made under this certificate prior to its expiration, or the termination thereof
under this provision, shall be affected by such expiration or termination.
	 
	9.  	The Guarantor may, for any reason, terminate Lender’s authority to make insured loans
hereunder upon 90 days written notice prior to the effective date of the termination.
	 
	   	This guaranty may also be terminated by Great Lakes Higher Education Guaranty Corporation in
the manner provided for by the Corporation Rules and Regulations.
	 
	   	Loans made prior to the date of any such termination will not be affected by the action of
the Guarantor provided they are otherwise insurable.

 

 

	10.  	The terms of the Agreement between Lender and Great Lakes Higher Education Guaranty
Corporation With Respect to Making Consolidation Loans under Section 428C of the Higher
Education Act of 1965 are incorporated herein and made a part hereof as if set forth herein in
their entirety.

	 	 	 	 	 
	 	GREAT LAKES HIGHER EDUCATION
GUARANTY CORPORATION

	 
	 	By:  	     /s/ Richard D. George
 	 
	 	 	     Richard D. George 	 
	 	 	     President & CEO 	 

 

 

	 	 	 	 	 

RIDER

Dated March 1, 2002

to

CERTIFICATE OF COMPREHENSIVE INSURANCE FOR CONSOLIDATION LOANS

Dated March 1, 2002

This Rider is made and entered into this 1st day of March 2002, between the GREAT LAKES HIGHER
EDUCATION GUARANTY CORPORATION (herein referred to as the “Agency”) and CONSOLIDATION LOAN FUNDING,
LLC (herein referred to as the “Lender”) as beneficial owner of loans the legal title to which is
held by its Eligible Lender Trustee, The Bank of New York Trust Company of Florida, N.A.

WHEREAS, the Agency has issued a Certificate of Comprehensive Insurance dated March 1, 2002 (herein
referred to as the “Certificate”) to Lender, and the Agency and the Lender wish to modify and/or
supplement said Certificate as set forth below.

NOW THEREFORE, it is mutually agreed that (and the defined terms herein have the meaning ascribed
to them in the Certificate):

	1.  	For all Consolidation Loans made by Lender in accordance with the Certificate and this Rider,
the Agency agrees to insure Consolidation Loans without regard to whether the borrower has an
active loan guaranteed by the Agency.

	2.  	Lender further agrees as follows with respect to Consolidation Loans made under the
Certificate:

	 	(a)  	Lender agrees not to include defaulted loans in any Consolidation Loan;
	 
	 	(b)  	Lender agrees that at least 80% of the principal amount of Consolidation Loans
each year will be made to borrowers who attended a four-year eligible educational
institution; and
	 
	 	(c)  	Lender agrees to a minimum $7,500 Consolidation Loan amount.

	3.  	The Agency shall administer its Consolidation Loan program, and perform the terms of the
Certificate and this Rider, in compliance with Part B of Title IV of the Higher Education Act
of 1965, as amended, and the regulations of the U.S. Department of Education promulgated
thereunder.

	4.  	Paragraphs 1 and 3 of this Rider amend the Certificate, but only insofar as specifically
stated herein. The Certificate, as modified and/or supplemented by this Rider, is hereby
ratified and confirmed and remains in full force and effect.

 

 

IN WITNESS WHEREOF, the parties have executed this Rider as of the date first above written.

	 	 	 	 	 	 	 	 	 
	CONSOLIDATION LOAN FUNDING, LLC	 	 	 	GREAT LAKES HIGHER EDUCATION
	BY CLF MANAGEMENT, INC.,	 	 	 	GUARANTY CORPORATION
	MANAGER	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	     /s/ Ryan D. Katz
	 	 
	 	By:
	 	     /s/ Richard D. George
	

	 	 
	 	 	 	 	 	 
	

	 	(Signature)
	 	 	 	 	 	(Signature)
	 
	 	 	 	 	 	 	 	 
	Name: Ryan D. Katz	 	 	 	Name: Richard D. George
	 
	 	 	 	 	 	 	 	 
	Title:  President	 	 	 	Title: President & CEO

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