Opinion ID: 1540298
Heading Depth: 1
Heading Rank: 2

Heading: Summary of NELS's Servicing Agreement Duties

Text: a. Maintain a file on each loan sufficient to allow separate identification of each loan securing the bonds. b. Maintain insurance or guarantee coverage on each loan. c. Allow forbearance on loans only in accordance with RISLA's forbearance policy. d. Exercise due diligence in servicing the loans. e. Collect all payments of principal and interest and deposit them (net of servicing fees) with the trustee (Fleet National Bank) in the final account pursuant to the custodian agreement, the trust agreement, and the financing agreement within five days of collection. f. Provide RISLA with a written statement indicating the amount billed for interest, subsidy payments, and special allowance payments. g. Be responsible, if discrepancies or disputes arise with respect to amounts billed and/or received, for representing the interest of RISLA in effecting a settlement with the Secretary of Education  but any settlement must be approved by a duly authorized officer of RISLA. h. Mail a statement to Fleet National Bank ten days after each deposit indicating the amount of principal and interest deposited. i. Retain summary records of all collection contracts and of changes for which records are required. j. Prepare and maintain appropriate accounting records with respect to all transactions relating to each loan. k. Handle processing of all adjustments and address changes. l. Take all necessary steps, when default occurs, to file and prove a claim for loss with the guarantee agency (RIHEAA) and assume responsibility for all communications with the guarantee agency as required to accomplish recovery. m. Take all actions necessary when a claim for loss is denied by the guarantee agency to allow RISLA to cause the lender to repurchase the loan or substitute a new one therefor. n. Prepare and file with the guarantee agency a lender's manifest on all new accounts, accounts paid in full, and accounts converted to a repayment basis. o. Prepare and make available to RISLA and Fleet National Bank by the fifteenth of each month the following reports: (1) Unaudited summary statement of all transactions of the preceding month (2) Report showing unpaid principal at end of the preceding month (3) Delinquency report for the preceding month showing all past-due accounts (4) Report of loans paid in full for the preceding month (5) Report of amount of unpaid principal on defaulted loans (6) Copies of all formal reports filed or made by NELS p. Maintain duplicate files on all loans at a separate location. q. Maintain in a fireproof vault the original promissory notes to each loan. r. Maintain insurance for loss or damage to the files and NELS shall be liable for costs or loss resulting from reconstruction of data in the event of a computer malfunction. s. Maintain fidelity bonds upon all of its personnel. t. Answer all reasonable inquiries from interested parties and resolve or notify RISLA of complaints within a reasonable time. u. Provide services to RISLA to enable it to comply with the financing agreement and all other obligations of NELS or RISLA pursuant to the custodian agreement or trust agreement.