Common use of Student Loan Program Clause in Contracts

Student Loan Program. (a) The Corporation, through its Servicers and Subservicers, shall diligently collect all principal and interest payments on all the Financed Student Loans held under this Indenture, and Default Claims, if any, which relate to such Financed Student Loans. The Corporation, through its Servicer or Subservicers, shall cause the filing and assignment of such claims within the time prescribed, with respect to Private Loans acquired with proceeds of Notes, by the Regulations of each Guarantee Agency guaranteeing Private Loans acquired with proceeds of Notes and, with respect to FFELP Loan acquired with proceeds of Notes, the Higher Education Act and the Regulations of the Secretary and the Guarantee Agencies guaranteeing FFELP Loans acquired with proceeds of Notes. The Corporation will comply with the provisions of the Higher Education Act, if any, which apply to the FFELP Loans acquired with proceeds of Notes. (b) No amount in the Acquisition Fund shall be expended or applied for the purpose of purchasing, originating or financing a Student Loan, and no Student Loan shall be financed hereunder, unless the Corporation has determined that each of the Student Loans meets the requirements of Section 7.12 hereof. (c) The Corporation may at any time exchange a Financed Student Loan for another Student Loan that does not meet the similar characteristics requirement of paragraph (e) of this Section provided that is has a maturity, an aggregate principal amount and interest rate not less than the aggregate principal amount and interest rate of the Financed Student Loan being exchanged, or sell, assign, transfer or otherwise dispose of a Financed Student Loan at a price: (i) in excess of the principal amount thereof (plus accrued borrower interest) or in excess of the purchase price paid by the Corporation for such Financed Student Loan (less principal amounts received with respect to such Financed Student Loan); (ii) equal to the principal amount thereof (plus accrued borrower interest), when the amounts on deposit in the Funds and Accounts and the Financed Student Loans in the Acquisition Fund (including accrued interest thereon), are at least equal to the principal amount of the Outstanding Notes plus accrued interest or in order to pay current Debt Service on the Notes or to avoid any default in the payment obligations of the Corporation under any Reimbursement Agreement or otherwise; or (iii) lower than the principal amount thereof (plus accrued borrower interest) if the Corporation has received a Credit Confirmation (or, for Notes not subject to a Credit Facility, a Rating Confirmation); provided, however, that such exchanges, sales, assignments, transfers or dispositions shall not collectively exceed 5% of the aggregate principal amount of the Financed Student Loans in any one year without the written consent of each Credit Facility Provider, if any. (d) To the extent permitted by this Indenture and each Supplemental Indenture, the Corporation will use its best efforts to evaluate the reinvestment of Recoveries of Principal and interest receipts with respect to Financed Student Loans to ensure that it will continue to be able to fulfill its debt service requirements hereunder. (e) Notwithstanding anything herein to the contrary, the Corporation may, without limitation, at any time and from time to time exchange Financed Student Loans for other Student Loans having similar characteristics (including insurance or guarantees, if any, maturities and payment status) and an aggregate principal amount and interest rate not less than the aggregate principal amount and interest rate of the Financed Student Loans being exchanged.

Student Loan Program. (a) The CorporationIssuer shall from time to time, through its Servicers with all practical dispatch and Subservicersin a sound and economical manner, shall diligently collect all principal (i) use and interest payments on all apply proceeds of the Financed Student Bonds and moneys in the Loan Account, to refinance Eligible Loans held (subject to receipt of a Credit Confirmation) or to pay other obligations of the Issuer required to be paid under this Indenture, (ii) do all such acts and Default Claimsthings as shall be necessary to receive and collect Revenues (including special allowance payments) sufficient to pay the Bonds, if anyand (iii) diligently enforce and take all steps, which relate actions and proceedings reasonably necessary in the judgment of the Issuer to such Financed Student Loans. The Corporation, through protect its Servicer or Subservicers, shall cause the filing and assignment of such claims within the time prescribed, rights with respect to Private Loans acquired with proceeds of NotesLoans, by the Regulations of each Guarantee Agency guaranteeing Private Loans acquired with proceeds of Notes andto maintain any insurance thereon and to enforce all terms, with respect to FFELP Loan acquired with proceeds of Notes, the Higher Education Act covenants and the Regulations conditions of the Secretary and the Guarantee Agencies guaranteeing FFELP Loans acquired with proceeds of Notes. The Corporation will comply with the provisions of the Higher Education Act, if any, which apply to the FFELP Loans acquired with proceeds of NotesLoans. (b) No amount in the Acquisition Fund Loan Account shall be expended or applied for the purpose of purchasing, originating or financing refinancing a Student Higher Education Act Eligible Loan, and no Student Higher Education Act Eligible Loan shall be financed hereunderrefinanced, unless (except to the Corporation extent that a variance from such requirements is required by an agency or instrumentality of the United States of America insuring or guaranteeing the payment of an Eligible Loan) the Issuer has determined determined: (i) that the payment of the principal of and interest on any Higher Education Act Eligible Loan is guaranteed by a Guarantor to the extent applicable as to such Loan as provided by federal law, and that the United States Secretary of Education is required, by the Higher Education Act at the time of the refinancing to reimburse the Guarantor to the extent permitted by federal law for any amount expended by the Guarantor in discharge of its insurance obligation on such Higher Education Act Eligible Loan; (ii) that the stated interest rate borne by a Higher Education Act Eligible Loan and payable on such Higher Education Act Eligible Loan at the time of its refinancing will not be less than the maximum rate permitted under applicable law at the time the particular Higher Education Act Eligible Loan was made; (iii) that as of the date of acquisition of such Higher Education Act Eligible Loan each of the Student representations in Schedule I hereto is true; and (iv) (A) that the Higher Education Act Eligible Loan is subject to being repurchased by the seller if such Higher Education Act Eligible Loan does not comply with the provisions of the applicable purchase agreement or other documentation relating to such Higher Education Act Eligible Loan and (B) that the seller or other transferor of such Higher Education Act Eligible Loan represented at the time such Loan was acquired by the Issuer that such Higher Education Act Eligible Loan subject to such transfer is free of any encumbrance or lien. The foregoing clauses (i) and (ii) notwithstanding, (A) Higher Education Act Eligible Loans meets (I) insured by a Guarantor under the requirements Higher Education Act to less than the percentage provided for in applicable law as of Section 7.12 hereofthe date of this Indenture (including reductions provided for in such applicable law) of the claim relating thereto or (II) having a return thereon less than the return as may be provided for in applicable law as of the date of this Indenture shall not be refinanced unless prior thereto the Issuer shall have received a Credit Confirmation with respect to the financing of any such Higher Education Act Eligible Loans; and (B) Higher Education Act Eligible Loans insured by a Guarantor which the Issuer knows to be insolvent shall not be refinanced. (ci) The Corporation may Issuer shall direct the Trustee to, at any time exchange a Financed Student Loan for another Student Loan that does not meet the similar characteristics requirement of paragraph (e) of this Section provided that is has a maturity, an aggregate principal amount and interest rate not less than the aggregate principal amount and interest rate of the Financed Student Loan being exchanged, or sell, assign, transfer or otherwise dispose of a Financed Student Loan in the manner specified in such Direction, and cause the Trustee to execute and deliver such documents as shall be necessary to effect such sale, assignment, transfer or other disposition if such sale, assignment, transfer or disposition (A) is made to the entity from which the Issuer obtained such Loan at a price: (i) in excess of the principal amount thereof (plus accrued borrower interest) or in excess of the purchase price paid by the Corporation for such Financed Student Loan (less principal amounts received with respect to such Financed Student Loan); (ii) equal to the principal amount thereof (of the Loan plus accrued borrower interest), when (B) is made for the amounts on deposit in purpose of consolidating the Funds Loans incurred by any borrower, and Accounts and the Financed Student Loans in the Acquisition Fund (including accrued interest thereon)if such sale assignment, are transfer or disposition is made at a price at least equal to the principal amount of the Outstanding Notes Loan (plus accrued interest), (C) is made to realize on any insurance or guaranty of any Loan in default, (D) is made to another program, indenture or other obligation of the Issuer at a price not less than par plus accrued interest or in order to pay current Debt Service on the Notes or to avoid any default in the payment obligations of the Corporation under any Reimbursement Agreement or otherwise; or (iii) lower than the principal amount thereof (plus accrued borrower interest) if the Corporation has received a Credit Confirmation (or, for Notes not subject to a Credit Facility, a Rating Confirmation); provided, however, that such exchanges, sales, assignments, transfers or dispositions shall not collectively exceed 5% of the aggregate principal amount of the Financed Student Loans in any one year without the written consent of each Credit Facility Provider, if any. (d) To the extent permitted by this Indenture and each Supplemental Indenture, the Corporation will use its best efforts to evaluate the reinvestment of Recoveries of Principal and interest receipts with respect to Financed Student Loans to ensure that it will continue to be able to fulfill its debt service requirements hereunder. (e) Notwithstanding anything herein to the contrary, the Corporation may, without limitation, at any time and from time to time exchange Financed Student Loans for other Student Loans having similar characteristics (including insurance or guaranteesunamortized premium, if any, maturities and or origination costs, if any, (E) is necessary to permit the payment status) and an aggregate principal amount and interest rate not less than the aggregate principal amount and interest rate of the Financed Student Loans being exchanged.Bonds when due, or