§ 620. Definitions. As used in this article, the following terms shall have the following meanings unless otherwise specified: 1. “Borrower” shall mean a student attending a covered institution in this state, or a parent or person in parental relation to such student, who also obtains an educational loan from a lending institution to pay […]
§ 621. Prohibition of gifts made by lending institutions to covered institutions and their employees. 1. A lending institution may not, directly or indirectly, offer or provide any gift to a covered institution or a covered institution employee, in exchange for any advantage or consideration provided to such lending institution related to its educational loan […]
§ 622. Prohibition of receipt of gifts by covered institutions. 1. A covered institution may not, directly or indirectly, solicit, accept or receive any gift from or on behalf of a lending institution, in exchange for any advantage or consideration provided to such lending institution related to its educational loan activities. 2. A covered institution […]
§ 623. Prohibition of receipt of gifts by covered institution employees. 1. A covered institution shall require that no covered institution employee on his or her own behalf or on behalf of another, directly or indirectly, solicits, accepts or receives any gift from or on behalf of a lending institution. Nothing in this section shall […]
§ 624. Covered institution employee prohibitions and reporting requirements. 1. A lending institution shall require that no covered institution employee receives any remuneration for serving as a member or participant of an advisory board of a lending institution or receives any reimbursement of expenses for so serving. 2. A covered institution shall require that no […]
§ 625. Misleading identification of lending institutions’ employees. 1. A lending institution shall require that no employee or agent of such lending institution is identified to borrowers or potential borrowers of a covered institution as an employee, representative or agent of such covered institution. 2. A covered institution shall require that no employee or agent […]
§ 626. Loan disclosure and prohibition of quid pro quo high risk loans. 1. Should a borrower or potential borrower consult a covered institution’s financial aid office in connection with obtaining an educational loan to pay for or finance higher education expenses, the covered institution shall inform the borrower or potential borrower of all available […]
§ 627. Standards for preferred lender lists. A covered institution that provides or makes available a preferred lender list must comply with the following standards: 1. A preferred lender list must disclose the process by which the covered institution selected lending institutions for such preferred lender list, including, but not limited to, the method and […]
§ 628. Proper execution of master promissory notes. A covered institution shall not direct in any manner whatsoever potential borrowers to any electronic master promissory notes or other loan agreements that do not provide a reasonable and convenient alternative for the borrower to complete a master promissory note with any federally approved lending institution offering […]
§ 629. Disclosures at request of covered institutions. Except for educational loans made, insured, or guaranteed by the federal government, upon the request of any covered institution, a lending institution shall disclose to such covered institution, in reasonable detail and form, the historic default rates of the borrowers from such covered institution, and the rates […]
§ 630. Penalties. 1. If after providing notice and an opportunity for a hearing the department determines that a covered institution or lending institution has violated any terms or provisions of this article, then the covered institution or lending institution may be liable for a civil penalty. Regardless of the department’s determination that a covered […]
§ 631. Rules and regulations. The commissioner and the department shall promulgate rules and regulations necessary for the implementation of this article.
§ 632. Non-exclusivity of rights or remedies. Nothing in this article shall be construed to limit, in any manner, any rights or remedies otherwise available under law to any person or entity, including, but not limited to, the attorney general of the state of New York.
