BLAIR LEE III, Acting Governor

433

18-1007. INTEREST ON LOANS.

(A)   REQUIRED; RATE.

(1)   THE BOARD SHALL REQUIRE EACH INDIVIDUAL WHO
BORROWS FROM THE CORPORATION, OR WHO BORROWS FUNDS
GUARANTEED BY THE CORPORATION, TO PAY INTEREST ON THE AMOUNT
BORROWED DURING THE TERM OF THE LOAN.

(2)   THE INTEREST RATE SET BY THE CORPORATION MAY
NOT BE MORE THAN THE MAXIMUM RATE SET BY THE COMMISSIONER.

(B)   COMPOUNDING PROHIBITED.

INTEREST ON ANY LOAN MADE OR GUARANTEED BY THE
CORPORATION:

(1)   MAY BE ACCUMULATED; AND

(2)   MAY NOT BE COMPOUNDED.

(C)   INTEREST PAID BY FEDERAL GOVERNMENT.

AN INDIVIDUAL WHO RECEIVES A LOAN OR GUARANTEE FROM THE
CORPORATION MAY NOT BE REQUIRED TO PAY ANY INTEREST THAT IS
PAID OR PAYABLE BY THE FEDERAL GOVERNMENT.

REVISOR'S NOTE: This section is new language derived
without substantive change from the last two
sentences of Art. 43A, §5(e) and §6.

18-1008. TERMS AND CONDITIONS OF LOAN.

(A)   COLLATERAL OR COSIGNER NOT REQUIRED.

COLLATERAL SECURITY OR ENDORSEMENTS MAY NOT BE REQUIRED
ON ANY LOAN MADE OR GUARANTEED BY THE CORPORATION EXCEPT ON
THE SPECIFIC AUTHORITY OF THE BOARD.

(B)   DURATION OF LOAN.

(1)    EACH STUDENT MAY BORROW FOR AT LEAST 6
ACADEMIC YEARS.

(2)   A LOAN MAY BE MADE TO A PART-TIME STUDENT
WHO:

(I)     CARRIES AT LEAST ONE HALF THE NORMAL
FULL-TIME ACADEMIC WORK LOAD AS DETERMINED BY THE COLLEGE OR
VOCATIONAL SCHOOL; AND

(II)   MEETS ANY OTHER QUALIFICATIONS SET BY THE
BOARD.

(C)   AMOUNT OF LOAN.

THE BOARD SHALL DETERMINE THE AMOUNT OF EACH LOAN
WITHIN THE LIMITS ESTABLISHED BY FEDERAL LAW AND THE