New Mexico Administrative Code › Title 5 - POST-SECONDARY EDUCATION › Chapter 5 - POST-SECONDARY EDUCATIONAL PROGRAMS › Part 20 - EDUCATIONAL LOAN PURCHASE PROGRAM › Section 5.5.20.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Additional
				Bonds" means any Bonds, other than the 1998 Bonds, the Series 1999 Bonds and
				the Series 2000 Bonds, issued pursuant to the Indenture.
B. "Bond" or bonds"means the 1998 Bonds, the
				Series 1999 Bonds, the Series 2000 Bonds and any Additional Bonds.
C. "Borrower Benefit Programs" means
				collectively the More Money Program, the Instant Savings Program, the Easy Pay
				Program, the Pot of Gold Program, the Teachers for Tomorrow Program and similar
				borrower benefit programs, approved by the Board and permitted by the
				Indenture.
D. "Certificate of
				Insurance" means a certificate of federal loan insurance evidencing that a
				Financed Eligible Loan is Insured pursuant to a Contract of
				Insurance.
E. "Contract of
				Insurance" means the Contract of Federal Loan Insurance, dated February 12,
				1982, between the Foundation and the Secretary, and any amendment thereof which
				is hereafter entered into.
F.
				"Derivative Product" means a written contract or agreement the Foundation and a
				Reciprocal Payor, which provides that the Foundation's obligations thereunder
				will be conditioned on the absence of (i) of failure by the Reciprocal Payor to
				make any payment required thereunder when due and payable, or (ii) a default
				thereunder with respect to the financial status of the Reciprocal Payor,
				and:
G. "Educational Assistance
				Act" means Sections
				21-21A-1
				to
				21-21A-23
				NMSA 1978, as amended from time to time.
H. "Easy Pay Program" means the Borrower
				Benefit Program that provides for an interest rate reduction of one quarter of
				one percent per annum if a borrower agrees to automatic loan payments with
				respect to a borrower's Eligible Loan.
I. "Eligible Borrower" means a student,
				parent or other borrower who is eligible under the Higher Education Act to be
				the obligor of a loan for financing a program of post-secondary
				education.
J. "Eligible
				Institution" shall mean an "eligible institution" as defined under the Higher
				Education Act which is a "participating school" within the meaning of the
				Higher Education Act.
K. "Eligible
				Loan" shall mean any loan made to finance post-secondary education that is (a)
				made under the Higher Education Act and is Guaranteed or Insured and has not
				been tendered to the Guaranty Agency or the Secretary for payment (unless the
				situation giving rise thereto has been cured) or (b) otherwise permitted to be
				acquired or originated by the Foundation pursuant to its Program (provided that
				loans described in this clause (b) shall not be originated or acquired pursuant
				to the Indenture unless the Trustee and the Foundation shall have received a
				Favorable Opinion (with respect to the use of the proceeds of Tax-Exempt Bonds)
				and a written confirmation from each Rating Agency that the origination or
				acquisition of such additional loans ( or a particular amount thereof) will not
				adversely affect the Rating on any of the Bonds then outstanding.
L. "Eligible Student" shall mean a student
				who is eligible under the Higher Education Act to receive a loan, which is
				Insured or Guaranteed, for financing a program of post-secondary education,
				including a student who is eligible under the Higher Education Act to be a
				student for whose benefit a PLUS/SLS Loan is made.
M. "Federal Reimbursement Contracts" means
				the agreements, dated July 1, 1981, as amended and supplemented, between NMSLGC
				and the Secretary providing for the payment by the Secretary of amounts
				authorized to be paid pursuant to the Higher Education Act, including (but not
				necessarily limited to) reimbursement of amounts paid or payable upon defaulted
				Financed Eligible Loans and other student loans Guaranteed or Insured by NMSLGC
				and interest subsidy payments to holders of qualifying student loans guaranteed
				or insured by NMSLGC.
N. "Financed"
				or "financing", when used with respect to the Eligible Loans, shall mean or
				refer to Eligible Loans (i) acquired or originated by the Foundation with
				balances in the Acquisition Fund or otherwise deposited in or accounted for in
				the Acquisition Fund or otherwise constituting a part of the Trust Estate and
				(ii) Eligible Loans substituted or exchanged for Financed Eligible Loans, but
				does not include Eligible Loans from the lien of the Indenture and sold or
				transferred, to the extent permitted by the Indenture.
O. "Fiscal Year" means the fiscal year of the
				Foundation as established from time to time.
P. "Foundation" means the New Mexico
				Educational Assistance Foundation, a nonprofit corporation duly organized and
				existing under the laws of the State, and any successor to its functions
				relating to the Program.
Q.
				"Guarantee" or "Guaranteed" means with respect to an Eligible Loan, the
				insurance or guarantee by the Guaranty Agency pursuant to such Guaranty
				Agency's Guarantee Agreement of the maximum percentage of the principal of and
				accrued interest on such Eligible Loan allowed by the terms of the Higher
				Education Act with respect to such Eligible Loan at the time it was originated
				and the coverage of such Eligible Loan by Federal Reimbursement Contracts,
				providing, among other things, for reimbursement to such Guaranty Agency for
				payments made by it on defaulted Eligible Loans insured or guaranteed by such
				Guaranty Agency of at least the minimum reimbursement allowed by the Higher
				Education Act with respect to a particular Eligible Loan.
R. "Guaranty Agency" means the NMSLGC, and
				any other entity authorized to guarantee student loans under the Higher
				Education Act, and their respective successors and assigns.
S. "Guarantee Agreements" means a guarantee
				or lender agreement with any Guaranty Agency, and any amendments
				thereto.
T. "Guarantee Fund" means
				a Guarantee Fund established in accordance with the Guarantee
				Agreement.
U. "Guarantee Program"
				means a Guaranty Agency's student loan insurance program pursuant to which a
				Guaranty Agency guarantees or insures student loans.
V. "Higher Education Act" means the Higher
				Education Act of 1965, as amended or supplemented from time to time, and all
				regulations, directives, bulletins and guidelines proposed or promulgated from
				time to time thereunder.
W.
				"Indenture" means the Indenture of Trust dated as of February 1, 1998 as
				amended and supplemented by the First Amendment to Indenture of Trust dated as
				of November 15, 1998, as supplemented and amended by the Second Supplemental
				Indenture of Trust dated as of May 1, 1999 and as supplemented and amended by
				the Third Supplemental Indenture of Trust dated as of October 1, 2000 including
				all supplements and amendments thereto.
X. "Insurance", "Insured" or "Insuring"
				means, with respect to an Eligible Loan, the insuring by the Secretary (as
				evidenced by a Certificate of Insurance or other document or certification
				issued under the provisions of the Higher Education Act) of 100% of the
				principal of and accrued interest on such Eligible Loan.
Y. "Insured Loan" means an Eligible Loan
				which is Insured.
Z. "Instant
				Savings Program" means the Borrower Benefit Program that provides for an
				interest rate reduction of one half of one percent with respect to a Stafford
				Loan or a PLUS Loan guaranteed on or after May 1, 1998, when the loan enters
				repayment with the Foundation.
AA.
				"Lender" means any "eligible lender," as defined in the Higher Education Act
				and the Loan Purchase Regulations, permitted to participate as a seller of
				Eligible Loans to the Foundation under the Program and which has received an
				eligible lender designation from the Secretary of Education with respect to
				Insured Loans or from a Guaranty Agency with respect to Guaranteed
				Loans.
BB. "Loan Purchase
				Agreement" or "Educational Loan Purchase Agreement" means an agreement between
				the Foundation and a Lender providing for the sale by the Lender to the
				Foundation of Eligible Loans under the Program.
CC. "Loan Purchase Regulations" means the
				rules and regulations of the Foundation duly adopted by the Board which pertain
				to the Program.
DD. "More Money
				Program" means the Borrower Benefit Program which provides for the payment of
				the guarantee fee of up to one percent of the loan principal which would
				otherwise be deducted from the proceeds of the loan and paid to the Guaranty
				Agency by the Foundation for all Stafford Loans and PLUS Loans guaranteed on or
				after June 1, 1999.
EE. "NMGSLC"
				means the New Mexico Student Loan Guarantee Corporation, a non-profit
				corporation organized under the laws of the State.
FF. "Outstanding" shall mean, when used in
				connection with any bond, a bond which has been executed and delivered pursuant
				to the Indenture which at such time remains unpaid as to principal or interest,
				and when used in connection with a Derivative Product, a Derivative Product
				which has not expired or been terminated, unless in all cases provision has
				been made for such payment pursuant to Section 10.02 of the Indenture,
				excluding bonds which have been replaced pursuant to Section 2.09 of the
				Indenture.
GG. "Pot of Gold
				Program" means the Borrower Benefit Program that provides for a one time five
				percent reduction of the principal amount of all Eligible Loans entering
				repayment on or after June 30, 1994 for Eligible Borrowers who have made all
				forty eight of their consecutive monthly payments on time as required by the
				applicable loan documents.
HH.
				"PLUS/SLS Loan" means a Student Loan authorized under Section 428A or Section
				428B of the Higher Education Act.
II. "Program" means the Foundation's program
				for the origination of Eligible Loans as the same may be modified from time to
				time.
JJ. "Secretary" means the
				Secretary of the United States Department of Education or any successor to the
				pertinent functions thereof under the Higher Education Act.
KK. "Special Allowance Payments" means
				special allowance payments authorized to be made by the Secretary of Education
				by Section 438 of the Higher Education Act, or similar allowances authorized
				from time to time by federal law or regulation.
LL. "State" means the State of New
				Mexico.
MM. "Teachers for Tomorrow"
				means the Borrower Benefit Program that provides full interest forgiveness for
				an Eligible Borrower when a Stafford Loan that is guaranteed on or after May 1,
				2000 enters repayment if an Eligible Borrower is a full-time teacher in New
				Mexico and such Stafford Loan is guaranteed by the Guaranty Agency and
				disbursed by the Foundation or one of its participating lenders.
NN. "Trustee" means Zions First National
				Bank, acting in its capacity as Trustee under the Indenture, or any successor
				trustee designated pursuant to the Indenture.