2023 New York Laws › EDN - Education › Title 1 - General Provisions › Article 14 - New York State Higher Education Services Corporation › Part 3 - Student Loans › 683-A - Sale of Student Loan; Notification to Borrower.

§ 683-a. Sale  of  student loan; notification to borrower. 1. "Banking
institution" as used in this section shall mean and include  all  banks,
trust  companies,  savings  banks, savings and loan associations, credit
unions and foreign banking corporations whether incorporated, chartered,
organized or licensed under the laws of this state or any other state or
the United States.
2. "Lender" as used in this section shall mean and include:
(a) a national or state chartered bank, mutual savings  bank,  savings
and loan association, or credit union that:
(1)  is  subject  to  examination and supervision in its capacity as a
lender by an agency of the United States or of the state  in  which  its
principal place of operation is established; and
(2)  does  not  make  or  hold  loans  to  students  under the federal
guaranteed student loan program that total more  than  one-half  of  its
consumer  credit loan dollar volume, including home mortgages, unless it
is a bank that is wholly owned by a state; or
(b) a pension fund as defined  in  the  federal  employees  retirement
income security act; or
(c)   an   insurance  company  that  is  subject  to  examination  and
supervision by an agency of the United States or a state; or
(d) in any state, a single agency of the state  or  a  single  private
nonprofit agency designated by the state; or
(e)  for  purposes  only of purchasing and holding loans made by other
lenders under the federal guaranteed student loan program,  the  student
loan  marketing  association  or an agency of any state functioning as a
secondary market.
3. "Guaranteed education loan" as used in this section shall mean  and
include  any  loan  made  for  the purpose of financing higher education
which is made under the authority of Part B of Title IV  of  the  Higher
Education  Act  of  1965  or  under the authority of section six hundred
eighty of this chapter.
4. Any banking institution or other eligible lender as such terms  are
defined  in  this  section  which sells a student loan held by it to the
federal student loan marketing association in the manner  authorized  by
the federal guaranteed student loan program and applicable provisions of
federal  law  shall  be required to provide written notification of such
sale to the student borrower by mail not later than  the  fifteenth  day
next succeeding the date of such sale.
5.  Whenever  a  banking  institution or other eligible lender as such
terms are defined in this section sells a guaranteed education  loan  to
another banking institution or eligible lender, such selling institution
shall  notify  the borrower in writing within fifteen days of such sale.
Such notice shall include the name and address of the institution  which
has  purchased  such loan. The selling institution shall also notify the
New York state higher education services corporation or other  guarantor
of such sale. Notice shall include:
(a)  the  name  and address of the institution which has purchased the
loan; and
(b) the name, address and social security number of the  borrower  and
the borrower's account number.