2646                                          LAWS OF MARYLAND                                      Ch. 704

"INSTITUTION" WITHIN THE MEANING OF THIS ACT, WHETHER AN
INSTITUTION IS LOCATED WITHIN THE WASHINGTON, D.C. METROPOLITAN
AREA, WHETHER AN INSTITUTION OR GROUP OF INSTITUTIONS HAS OR
REASONABLY CAN BE EXPECTED TO HAVE, IF APPROVED FOR PARTICIPATION
IN A PROGRAM OF THE AUTHORITY, A SUBSTANTIAL NUMBER OF RESIDENTS
OF THE COUNTY AS FULL-TIME STUDENTS, AND THOSE ELIGIBILITY
STANDARDS FOR BORROWERS THAT THE AUTHORITY DETERMINES MAY BE
NECESSARY OR DESIRABLE TO EFFECTUATE THE PURPOSES OF THIS
SUBTITLE AND WHICH SHALL INCLUDE PROVISIONS THAT EACH STUDENT
HAVE A CERTIFICATE OF ADMISSION OR ENROLLMENT AT A PARTICIPATING
INSTITUTION, THAT EACH STUDENT BE A RESIDENT OF PRINCE GEORGE'S
COUNTY, THAT EACH BORROWER SATISFY THE FINANCIAL QUALIFICATIONS
THAT THE AUTHORITY ESTABLISHES AND THAT EACH STUDENT AND EACH
BORROWER SUBMIT TO THE PARTICIPATING INSTITUTION INFORMATION THAT
MAY BE REQUIRED BY THE AUTHORITY. IN ESTABLISHING CRITERIA FOR
THE DETERMINATION OF COUNTY RESIDENCY THE AUTHORITY MAY UTILIZE
THE CRITERIA ESTABLISHED BY THE UNIVERSITY OF MARYLAND FOR THE
DETERMINATION OF RESIDENCY, AS APPLICABLE, OR MAY ESTABLISH SUCH
OTHER OR ADDITIONAL CRITERIA AS ARE CONSISTENT WITH LAW.

(D)  THE AUTHORITY MAY CONTRACT WITH FINANCIAL INSTITUTIONS
AND OTHER ORGANIZATIONS DETERMINED BY THE AUTHORITY TO BE
QUALIFIED TO PROVIDE LOAN ORIGINATION AND SERVICING SERVICES TO
PROVIDE ASSISTANCE IN PREQUALIFYING BORROWERS FOR EDUCATION LOANS
AND FOR SERVICING AND ADMINISTERING EDUCATION LOANS AND ANY
LENDING INSTITUTION'S LOAN SERIES PORTFOLIO. ANY EDUCATION LOAN
FEE MAY INCLUDE A PORTION TO COVER THE COST OF ANY SERVICING
ORGANIZATION'S ASSISTANCE PRORATED ON A BASIS DEEMED FAIR BY THE
AUTHORITY.

(E)  TO INSURE THE MARKETABILITY OF ITS BONDS AND THE
ADEQUACY OF THE SECURITY FOR THE PAYMENT OF THE PRINCIPAL OF AND
INTEREST ON ITS BONDS, THE AUTHORITY MAY CONSULT WITH THE
MARYLAND HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY TO
ESTABLISH CRITERIA GOVERNING:

(1)  THE ELIGIBILITY OF ANY INSTITUTION TO PARTICIPATE
IN ITS PROGRAM AS A PARTICIPATING INSTITUTION OR LENDING
INSTITUTION;

(2)  THE ELIGIBILITY OF ANY INSTITUTION AFFILIATE TO
PARTICIPATE IN ITS PROGRAM AS A LENDING INSTITUTION;

(3)  THE ELIGIBILITY OF STUDENTS TO PARTICIPATE IN ITS
PROGRAM;

(4)  THE MAKING OF AUTHORITY LOANS AND EDUCATION
LOANS;

(5)  PROVISIONS FOR DEFAULT;

(6)  THE ESTABLISHMENT OF DEFAULT RESERVE FUNDS;

(7)  THE PURCHASE OF DEFAULT INSURANCE; AND