New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) "Applicant"
				  shall mean any person applying for a license under this part.
(b) "Borrower" shall mean any resident of
				  this state who has received a student loan or agreed in writing to pay a
				  student loan or any person who shares a legal obligation with such resident for
				  repaying a student loan.
(c)
				  "Borrower benefit" shall mean an incentive offered to a borrower in connection
				  with the origination of a student loan, including but not limited to an
				  interest rate reduction, principal rebate, fee waiver or rebate, loan
				  cancellation, or cosigner release.
(d) "Exempt organization" shall mean any
				  banking organization, foreign banking corporation, national bank, federal
				  savings association, federal credit union, or any bank, trust company, savings
				  bank, savings and loan association, or credit union organized under the laws of
				  any other state; any public postsecondary educational institution or private
				  nonprofit postsecondary educational institution; the New York State higher
				  education services corporation; and any entity that holds a license under
				  articles nine or eleven-b of the banking law.
(e) "NMLS" means the Nationwide Multistate
				  Licensing System & Registry and shall include all related computer systems,
				  the Conference of State Bank Supervisors, and State Regulatory Registry
				  LLC.
(f) "Nonconforming payment"
				  shall mean an overpayment or a partial payment.
(g) "Overpayment" shall mean a payment on a
				  student loan in excess of the total monthly amount due from a borrower on a
				  student loan, also commonly referred to as a prepayment.
(h) "Partial payment" shall mean a payment on
				  a student loan in an amount less than the monthly amount due from a borrower on
				  a student loan, also commonly referred to as an underpayment.
(i) "Person" shall mean any individual,
				  association, corporation, limited liability company, partnership, trust,
				  unincorporated organization, government, or any other entity.
(j) "Student loan servicer" shall mean a
				  person engaged in the business of servicing student loans owed by one or more
				  borrowers.
(k)
(1) "Servicing" shall mean:
(i) receiving any payment from a borrower
				  pursuant to the terms of any student loan; or
(ii) applying any payment to the borrower's
				  account pursuant to the terms of a student loan or the contract governing the
				  servicing of any such loan; or
(iii) during a period where a borrower is not
				  required to make a payment on a student loan, maintaining account records for
				  the student loan and communicating with the borrower regarding the student loan
				  on behalf of the owner of the student loan promissory note; or
(iv) in conjunction with performing the
				  activities described in subparagraphs (i), (ii), and (iii) of this paragraph:
(a) providing any notification of amounts
				  owed on a student loan by or on account of any borrower;
(b) performing other administrative services
				  with respect to a borrower's student loan; or
(c) interacting with a borrower with respect
				  to or regarding any attempt to avoid default on the borrower's student loan and
				  facilitating the activities described in subparagraph (i) or (ii) of this
				  paragraph.