Document:

exv10w35

 

EXHIBIT 10.35

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
	 	1/30/04
	

	 	 
	 	 
	

	 	Authorized Officer
	 	Date

     The
above Guaranty is hereby accepted this 30th day of  January,
 2004

     Exact Corporate Title The Bank of New York Trust Company, N.A., as eligible Lender trustee for
Consolidation Loan Funding II LLC

     By
/s/ William Cardozo Title of Officer
Assistant Vice President

     Employer
Identification Number 59 2283428 Lender Number 834118

 

 

Agreement With Respect to Making Consolidation Loans

Under Section 428C of the Higher Education Act of 1965

     CONSOLIDATION LOAN FUNDING II, 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, N.A.,
Lender #834118, 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 full 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 I 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.

	 	 	 	 	 	 	 
	CONSOLIDATED LOAN FUNDING II, 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:

	 	January 1, 2004
	Certificate Amount:

	 	 $4,000,000,000
	Lender ID No.:

	 	 834118

CERTIFICATE OF COMPREHENSIVE INSURANCE FOR CONSOLIDATION LOANS

     WHEREAS, CONSOLIDATION LOAN FUNDING II, 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,
NA., 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 December 31, 2005, 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 here under, 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 CORPORATION

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

 

 

	 	 	 	 	 

RIDER

Dated January 1, 2004

to

CERTIFICATE OF COMPREHENSIVE INSURANCE FOR CONSOLIDATION LOANS

Dated January 1, 2004

This Rider is made and entered into this 1st day of January, 2004, between the GREAT
LAKES HIGHER EDUCATION GUARANTY CORPORATION (herein referred to as the “Agency”) and CONSOLIDATION
LOAN FUNDING II, 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, N.A.

WHEREAS, the Agency has issued a Certificate of Comprehensive Insurance dated January 1, 2004
(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.

	 	 	 	 	 	 	 
	CONSOLIDATED LOAN FUNDING II, LLC
BY CLF MANAGEMENT, INC., MANAGER	 	GREAT LAKES HIGHER EDUCATION

GUARANTY CORPORATION
	 
	 	 	 	 	 	 
	By:

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

	 	 
	 	 	 	 
	

	 	      (Signature)
	 	 	 	    (Signature)
	 
	 	 	 	 	 	 
	Name:

	 	Ryan D. Katz
	 	Name:
	 	Richard D. George
	 
	 	 	 	 	 	 
	Title:

	 	President
	 	Title:
	 	President & CEOexv10w36

 

EXHIBIT 10.36

GREAT LAKES EDUCATIONAL LOAN SERVICES, INC.

Student Loan Servicing Agreement

This Agreement, is made as of February 1, 2003, between the GREAT LAKES EDUCATIONAL LOAN SERVICES,
INC. (“Great Lakes”) and EDUCATION LOAN ASSET-BACKED TRUST I, a Delaware statutory trust the
Delaware trustee for which is The Bank of New York (Delaware), as beneficial owner of loans the
legal title to which will be held by The Bank of New York, as Eligible Lender Trustee (“Eligible
Lender Trustee”), Lender #833922 (the “Lender”), an eligible institution engaged in providing loans
(“Loans”) to students and parents under Title IV, Part B of the Higher Education Act of 1965, as
amended (hereinafter the “Act”).

W I T N E S S E T H:

Whereas, Great Lakes has established a program for servicing Loans under the Act; and

Whereas, the Lender desires that Great Lakes service Loans which are purchased by the Lender and
which are covered by the Act, according to the terms and conditions set forth herein.

Now Therefore, in consideration of the promises and the terms and conditions set forth herein, the
Lender agrees as follows:

1. Loans to be Serviced. Great Lakes and the Lender agree that Great Lakes shall service all Loans
covered by the Act which are made or purchased by the Lender and which are guaranteed by Great
Lakes Higher Education Guaranty Corporation, and which are submitted to Great Lakes by the Lender
and accepted by Great Lakes for servicing.

2. Great Lakes’ Duties as Servicer.

     (a) Great Lakes as servicer of the Loans shall perform all of the Lender’s obligations as
holder of Loans as required by the Act and all regulations issued by the U. S. Department of
Education or by the guarantor to implement the Act. Great Lakes shall have full power to sign and
act on the Lender’s behalf as the Lender’s agent in all transactions with borrowers serviced
hereunder. Lender does hereby authorize, constitute, and appoint Great Lakes on its behalf and as
its attorney in fact, to endorse those promissory notes for which a claim has been filed with the
guarantor. Great Lakes will carry out its responsibilities hereunder in a diligent and lawful
manner.

     (b) Great Lakes shall complete all forms and reports required by the U. S. Department of
Education and by Great Lakes Higher Education Guaranty Corporation.

     (c) Great Lakes shall prepare a “Lender’s Interest and Special Allowance Request and
ReportLaRS” to be used in billing the U.S. Department of Education (the “Department”) for interest
and the special allowance for all eligible loans on a quarterly basis. Great Lakes agrees to submit
the electronic report to the Department within 30 days following the last day of each quarter
(March 31, June 30, September 30, December 31).

 

 

     Great Lakes shall accrue and capitalize interest on those Loans not eligible for interest
subsidy.

     (d) Great Lakes shall verify the current status of all borrowers not less often than annually
through direct contact with each borrower to ensure correct account information. Great Lakes shall
also seek to verify the borrower’s status by direct or indirect contact with educational
institutions.

     (e) Great Lakes shall respond to all borrower inquiries in a prompt, courteous and thorough
manner.

     (f) When a Loan becomes due for repayment, Great Lakes shall prepare a payment schedule and
disclosure statement and mail it to the borrower for signature(s). Prior to the first payment due
date, repayment coupons will be prepared and sent to the borrowers.

     (g) Great Lakes shall collect when and as due and remit to Lender all principal, interest,
charges and fees (including late fees) owed by borrowers. Great Lakes shall post to the borrower’s
account all payments of principal, interest and other charges. Cash receipts shall be remitted to
the Lender daily via an ACH transfer initiated by Great Lakes the day after collection. In the
event that Great Lakes services Loans that secure more than one series or class of bonds or other
indebtedness of Lender, Great Lakes will report all payment allocations separately by financing.

     (h) Great Lakes shall provide reports via email to the Lender and the Eligible Lender Trustee
of all monetary transactions as well as periodic summary and account information as required in the
“Lender Service Manual” including such items as:

     (1) Detailed periodic reports to support all cash transactions processed;

     (2) Monthly portfolio summary reports and supporting data listings;

     (3) A monthly listing of delinquent accounts; and

     (4) A quarterly report of billings to the U. S. Department of Education for interest
and special allowances.

     (i) Great Lakes shall automatically credit the Lender’s account whenever a borrower overpays
an account by less than $5.00, and the Lender, at its discretion, can reimburse the borrower. When
the overpayment is more than $5.00, Great Lakes shall remit the overpayment directly to the
borrower.

When a borrower’s balance owing is less than $10.00, Great Lakes may, at its discretion, write-off
the balance.

     (j) Great Lakes shall handle all required borrower contact functions and shall meet all
servicing “due diligence” requirements, as that term is used under the Act and implementing
regulations. Such functions include, for example, skip tracing, contacting delinquent borrowers,

-2-

 

handling borrower requests for extensions or deferments, and preparing and processing claims,
including death, disability, default, closed school, false certification and bankruptcy claims.

     (k) Great Lakes agrees to prepare and submit all papers and documents necessary to strictly
follow reimbursement procedures specified in the guarantor’s Common Manual upon default of borrower
and further agrees to promptly remit proceeds to Lender upon receipt from the guarantor.

3. Lender’s Responsibilities. Lender agrees to promptly notify Great Lakes of any transactions
involving the Lender and the borrower and/or changes in status or demographic data on any of its
accounts if received from sources other than Great Lakes. Lender specifically agrees to promptly
notify Great Lakes of any bankruptcy action taken with respect to any Loan.

4. Fees. The Lender agrees to pay Great Lakes the fees established by Great Lakes from time to time
for services rendered pursuant to this Agreement. The current fee schedule is attached to this
Agreement as Schedule A. Increases or decreases in such schedule may be made from time to time;
provided however, that the Lender shall be given 60 days written notice prior to the effective date
of any change in the fee schedule. Such effective date shall be the beginning of a calendar quarter
(April 1, July 1, October 1, January 1). Statements for services rendered will be provided on a
monthly basis and are payable upon receipt.

5. Liability. Great Lakes shall exercise care and due diligence in performing the services
required by this Agreement. To the extent that Great Lakes is required to appear in, or is made a
defendant in any legal action or other proceeding commenced by a party other than Lender with
respect to any matter arising hereunder, Lender shall indemnify and hold Great Lakes harmless from
all loss, liability and expense (including reasonable attorney’s fees) except for any loss,
liability or expense arising out of or relating to Great Lakes’ acts or omissions with regard to
the performance of services hereunder. Subject to paragraph 13 below, Great Lakes shall indemnify
and hold Lender harmless from all loss, liability and expense (including reasonable attorney’s
fees) arising out of or relating to Great Lakes’ acts or omissions with regard to the performance
of services hereunder provided however that Great Lakes shall not be liable in the performance of
such services except for its negligence or misconduct and provided further that in no event shall
Great Lakes be responsible or liable for any consequential damages with respect to any matter
whatsoever arising out of this Agreement.

     Either party shall have the right to mitigate its liability under this Agreement by taking
such actions as may be appropriate, including but not limited to reperformance.

     If, within a twelve-month period beginning on the date a claim is denied or would have been
denied if filed timely, or a cure should be initiated pursuant to the terms of this Agreement,
Great Lakes is unable to cure a Loan or to demonstrate that none of the stated reasons for claim
denial is attributable to Great Lakes, Great Lakes will purchase the subrogated rights to collect
on such Loan from the Lender. Upon payment by Great Lakes of the sum of the unpaid principal amount
plus interest and special allowance foregone by Lender at the applicable rate at the time of
purchase, the Loan shall be considered a “Subrogated Loan” and shall no longer be considered a
“Loan” as defined in this Agreement.

-3-

 

     For any Subrogated Loan for which insurance is reinstated in accordance with guarantor policy,
Lender will pay Great Lakes an amount equal to the principal balance, of the Subrogated Loan
including any unreinsured interest that may have been capitalized, insured accrued interest, and
Special Allowance collectible. After such payment, the subrogation right purchased by Great Lakes
is void and such Loan shall be deemed a Loan subject to this Agreement and will no longer be a
Subrogated Loan.

     Except as to loans originated by Great Lakes, Great Lakes does not assume, and acceptance for
servicing shall not result in, any responsibility for the correctness or completeness of Loan
related papers transmitted to Great Lakes as a part of or in conjunction with the commitment of any
Loans to Great Lakes for servicing, and Great Lakes shall not be responsible for any procedural
errors or omissions (including due diligence violations) which may have occurred prior to
initiation of servicing of a Loan hereunder by Great Lakes.

6. Confidentiality. Information about each borrower furnished to Great Lakes hereunder is
furnished upon the express condition that the information will be kept confidential by Great Lakes.
All such information, except as may be otherwise required by statute, by court order or as may be
necessary in Great Lakes’ reasonable judgment to the performance of the services required under
this Agreement, shall be held in confidence by Great Lakes.

7. Examination of Records. The Lender or its designated representative may at any time during
Great Lakes’ regular business hours examine, at the sole expense of the Lender, the records which
Great Lakes maintains on the Lender’s loans.

8. Termination.

     (a) This Agreement shall remain in full force and effect until terminated or modified as
provided herein. This Agreement may be terminated only at the end of a calendar quarter (March 31,
June 30, September 30, December 31), and only if written notice is given: (i) by the Lender to
Great Lakes at least 30 days prior to the end of a calendar quarter, or (ii) by Great Lakes to the
Lender at least 180 days prior to the end of a calendar quarter.

     (b) In the event that this Agreement is terminated as provided in subsection (a) above, Great
Lakes shall continue its full servicing until the date of termination and shall provide to the
Lender a full set of periodic reports, adjusted through the date of termination. Great Lakes shall
retain all notes, records and papers, as well as a copy of all computer-stored data relating to the
Lender’s accounts as required by the Act. Great Lakes shall make available to the Lender on demand
copies of all computer records relating to the Lender’s accounts. Such copies of the computer
records will be provided and updated at the times desired by Lender in order to facilitate a
transfer to another servicing agent. The Lender agrees to pay Great Lakes the servicing removal fee
identified on Schedule A. Upon the Lender’s request, Great Lakes may agree to provide servicing
removal services beyond those identified in this section. Such agreement between Great Lakes and
the Lender shall include sufficient additional charges to cover Great Lakes’ costs. Great Lakes
agrees that Lender shall be entitled to injunctive relief to enforce the provisions of this
subsection.

-4-

 

     (c) The Lender shall be liable for all charges incurred for services performed pursuant to
this Agreement up to the termination date.

     (d) Great Lakes shall continue to be liable for all acts or failures to act which occur prior
to termination (or the following loan transactions: sale or transfer to another Lender, servicing
transfer to Lender or another servicer, purchase by the guarantor or payment in full), but shall
not be liable for post-termination activities except that Great Lakes shall be obligated to remit
to the Lender any collections received by Great Lakes subsequent to termination and to provide the
reports and records herein required.

9. Amendments. Except as provided in section 4, this Agreement may be amended by Great Lakes at
anytime upon 30 days written notice to the Lender, provided that the provisions of this Agreement
shall at all times be consistent with the Act and applicable regulations. In the event of any such
modification by Great Lakes the Lender has 30 days in which to accept or reject the modification by
notice in writing. In the event of rejection of proposed modification, either party may exercise
its right to terminate as provided in section 8. In the event of termination for this reason, such
modification shall not apply to the Lender.

10. Governing Law. This Agreement shall be interpreted under the laws of the State of Wisconsin.

11. No Implied Waiver. Any waiver or modification, expressed or implied, by Great Lakes or by the
Lender of any breach of this Agreement shall not be construed to be a waiver of any such breach or
any acquiescence thereto; nor shall any delay or omission by Great Lakes or by the Lender to
exercise any right arising from any such breach affect or impair the respective party’s right to
such breach or any future breach.

12. Arbitration. In the event that the parties hereto shall fail to agree regarding any provision
of this Agreement, such disputes shall be resolved by arbitration procedures established by the
American Arbitration Association by a panel of three neutral arbitrators who shall render a written
opinion explaining the reasons for their award. The decision of any arbitrator under this paragraph
shall be final and binding upon the parties.

13. Limitation of Liability. Great Lakes and the Lender recognize that Great Lakes’ Lender
servicing programs are separate and distinct from GLHEGC’s guarantee program. The Lender
specifically agrees to look only to Great Lakes in its capacity as a servicing agent for any claims
under this Agreement relating to its functions as servicing agent. Lender specifically waives any
claim against GLHEGC’s Guarantee Fund as defined in 34 CFR 682.410(a)(1) and against GLHEGC’s
Federal Reserve Fund and Administrative Operating Fund and all other escrows required under the
Higher Education Act of 1965 as amended for claims under this Agreement.

14. Assignment. Lender may assign this Agreement to any affiliate and Great Lakes may assign this
Agreement to any affiliate to which its FFELP lender servicing program is transferred in whole or
substantial part. Except as provided herein, this Agreement may not be assigned without the prior
consent of the non-assigning party, which shall not be unreasonably withheld.

     Notwithstanding the foregoing, this Agreement has been made and entered into not only for the
benefit of Great Lakes and the Lender but also for the benefit of the Lender’s Trustee in

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connection with the financing of Loans; the Lender shall have the right to assign this
Agreement to the Trustee and, upon assignment, its provisions may be enforced not only by the
parties to this Agreement but by the Trustee; the foregoing creates a permissive right on behalf of
the Trustee but if the Trustee takes an assignment of this Agreement then the Trustee to the extent
of the trust corpus shall fulfill the payment obligations of the Lender to Great Lakes as servicer
under this Agreement but the Trustee’s obligations shall be solely on behalf of and shall be
limited to the trust corpus and the Trustee shall have no personal liability for such obligations.
Upon such an assignment, this Agreement shall inure to the benefit of the Trustee and its
successors and assigns. Without limiting the generality of the foregoing, all representations,
covenants and agreements in this Agreement which expressly confer rights upon the Lender or the
Trustee shall be for the benefit of, and run directly to, the Trustee and the Trustee shall be
entitled to rely on and enforce such representations, covenants and agreements to the same extent
as if it were a party hereto.

15. Compliance With Lender Bond Documents. In the event that any Loans which Lender delivers to
Great Lakes for servicing hereunder constitute “Financed Student Loans” under the Indenture of
Trust dated as of February 1, 2003 (the Indenture”), between Lender and The Bank of New York, as
Eligible Lender Trustee and The Bank of New York as Indenture Trustee (the “Trustee”), or are
pledged in connection with, or constitute collateral under any similar indenture or loan agreement
pledging or granting to any entity a security interest therein (all such Loans or other loans
pledged to or held by a trustee or other entity are hereafter referred to as the “Pledged Education
Loans”), Great Lakes agrees as follows:

     (a) At the request of the Trustee or other pledgee of such Pledged Education Loans, Great
Lakes will enter into a Custodian Agreement or other similar document, in form and substance
reasonably acceptable to Great Lakes, Lender and such Trustee or other pledgee, for the purpose of
establishing a bailment with respect to any Pledged Education Loans pledged to the Trustee or other
pledgee.

     (b) Great Lakes shall hold all Pledged Education Loans and related documentation as bailee for
and on behalf of the Trustee (or such other pledgee as may be applicable) for Trustee’s intended
purpose of perfecting the security or other interests of such Trustee or other pledgee therein.

     (c) All sums received by Great Lakes with respect to Pledged Education Loans shall be held on
behalf of the Trustee or other applicable pledgee, including but not limited to, all payments of
principal and interest, and insurance or guarantee payments. All such funds shall be held in a
segregated account (which may, however, contain funds belonging to other Great Lakes servicing
customers, including Great Lakes affiliates) and shall not be commingled with any of Great Lakes’
other funds and shall be accounted for such that all such funds are identified separately from all
other payments received by Great Lakes in respect of the servicing of loans. Any such amounts, if
received by Great Lakes, shall be remitted only to the Trustee or other pledgee, and not to the
Lender, unless otherwise directed by the Trustee or other applicable pledgee.

     (d) If any Education Loans are Pledged Education Loans, all periodic reports required to be
furnished pursuant to this Agreement shall be furnished to the Trustee.

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     (e) With respect to the servicing of any Pledged Education Loans on behalf of or for the
benefit of the Trustee or any other applicable pledgee, no amendment, modification, or addition to
this Agreement shall be effective with respect to any Trustee or such other applicable pledgee
without their written approval, consent, or direction of Trustee.

     (f) Great Lakes waives any lien that it might have pursuant to statute or otherwise available
at law or in equity on any and all notes evidencing Pledged Education Loans held by it on behalf of
the Trustee, and on all related documentation, including all moneys and proceeds derived therefrom
or relating thereto. Notwithstanding the foregoing, if Great Lakes incurs cost or expense (i) due
to an “unreasonable act” of a Guarantor resulting in the Guarantor’s refusal to pay a claim, or
(ii) due to Lender failing to make payments to the Department required by law or Regulation, Great
Lakes may offset such cost or expense against moneys derived from Pledged Education Loans serviced
by Great Lakes and held by Lender on behalf of the Trustee. In addition, Great Lakes may offset
against such derived moneys in the event fees due it are not paid in accordance with this
agreement.

     (g) Great Lakes shall administer and collect all Pledged Education Loans in a competent,
diligent and orderly fashion and in accordance with all requirements of the Act, the Secretary and
this Agreement.

If there is an Event of Default under the Indenture and the Trustee forecloses on its security
interest on the Education Loans, then the Trustee shall assume all duties and obligations of the
Issuer Lender hereunder.

16. Limited Role of the Delaware Trustee. It is expressly understood and agreed by the parties
hereto that (a) this Agreement is executed and delivered by The Bank of New York (Delaware), not
individually or personally, but solely as trustee of the Issuer in the exercise of the powers and
authority conferred and vested in it, (b) each of the representations, undertakings and agreements
herein made on the part of the Issuer is made and intended not as personal representations,
undertakings and agreements by The Bank of New York (Delaware) but is made and intended for the
purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any
liability on The Bank of New York (Delaware), individually or personally, to perform any covenant
either expressed or implied contained herein, all such liability, if any, being expressly waived by
the parties hereto and by any Person claiming by, through or under the parties hereto and (d) under
no circumstances shall The Bank of New York (Delaware) be personally liable for the payment of any
indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this Agreement.

17. Notices. All notices, requests, demands or other instruments which may or are required to be
given by any party to any other party shall be in writing and such shall be deemed to have been
properly given when served personally on an officer of the entity to which such notice is to be
given, or upon expiration of a period of 48 hours from and after the postmark thereof when mailed
postage prepaid by registered or certified mail, requesting return receipt, addressed as follows:

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If intended for Great Lakes Educational Loan Services, Inc.:

Chief Servicing Officer

Great Lakes Educational Loan Services, Inc.

2401 International Lane

P. O. Box 7858

Madison, WI 53707

If intended for Lender:

Education Loan Asset-Backed Trust I

c/o CLF Administration Company, L.L.C.

Attn: Mr. Ryan Katz

1700 South Diagonal Road, Suite 625B

Alexandria, VA 22314

With copies to:

The Bank of New York

Attn: Corporate Trust Manager

10161 Centurion Parkway, 2°d Floor

Jacksonville, FL 32256

Fax number: 904/645-1921

-and-

John J. Witmeyer III, Esq.

Ford Marrin Esposito Witmeyer & Gleser, L.L.P.

Wall Street Plaza

New York, NY 10005-1875

-8-

 

     In Witness Whereof, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 	 	 
	EDUCATION LOAN ASSET-BACKED	 	GREAT LAKES EDUCATIONAL
	TRUST I by the Bank of New York (Delaware),	 	LOAN SERVICES, INC.
	as Delaware Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Michael Santino
	 	By:
	 	/s/ Michael J. Noack
	

	 	

	 	 	 	

	

	 	 	 	 	 	Michael J. Noack
	Its:

	 	SVP
	 	 	 	Chief Servicing Officer

-9-

 

GREAT LAKES EDUCATIONAL LOAN SERVICES, INC.

STUDENT LOAN SERVICING AGREEMENT

EDUCATION LOAN ASSET-BACKED TRUST I AS BENEFICIAL OWNER OF LOANS

THE LEGAL TITLE TO WHICH WILL BE HELD BY THE BANK OF NEW YORK, AS

ELIGIBLE LENDER TRUSTEE

SCHEDULE A — FEES

The Lender agrees to pay the following fees to Great Lakes upon receipt of a monthly statement for
services rendered pursuant to this agreement:

          Monthly Service Fees:

                    $1.25 per borrower per month during interim (in-school) period

                    $3.05 per borrower per month during grace period

                    $3.25 per borrower per month during first 12 months of repayment servicing

                    $2.88 per borrower per month during the remainder of the repayment period

          Servicing Removal Fee:

                    $14.00 per account, plus actual cost of additional services requested to remove an
active account from the servicing system

          Late Charge Assessment Fee:

                    Great Lakes shall receive 25% of the late fee revenue collected from delinquent
borrowers

          Monthly Extract Fee:

                    -$100.00 per month

Consolidation loans will be charged the standard repayment servicing fees.

The total monthly amount due will be the actual fees calculated as described above or $75,
whichever is greater.

Great Lakes may agree to provide the lender with services beyond those normally included in the
servicing program. Such agreement between Great Lakes and the lender shall include sufficient
additional charges to cover Great Lakes’ costs.

Increases or decreases to this fee schedule may be made from time to time as provided in Section 5
of this agreement.

-10-

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