EXHIBIT 4.6
PENNSYLVANIA HIGHER EDUCATION
ASSISTANCE AGENCY NATIONAL GUARANTY
AGREEMENT
LENDER AGREEMENT FOR GUARANTEE OF
STUDENT LOANS WITH FEDERAL
REINSURANCE (for loans to students and parents of students pursuant to the
Higher Education Act of 1965, as amended)
WHEREAS Star Bank, National Association, as Trustee for Crestar Student Loan
Trust 1997-1
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(Corporate Name)
Located at ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
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(Street Address)
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
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(City) (State) (Zip Code)
hereinafter referred to as the "Lender," wishes to be able to secure guarantee
of loans made to students pursuing programs of higher or vocational education at
eligible institutions, and to parents of such students pursuant to the Higher
Education Act of 1965, as amended, hereinafter referred to as the "Act;" and
WHEREAS, the Pennsylvania Higher Education Assistance Agency, hereinafter
referred to as the "Agency," was created by the Act of August 7, 1963, P.L. 549
for the purpose of improving higher educational opportunities and to that end
the Agency is empowered to guarantee loans; and
WHEREAS, the Lender wishes to participate in the Agency's Guaranty Program.
NOW THEREFORE, it is mutually agreed that:
1. Within such limits as may be set by it, the Agency shall guarantee
the full amount of all loans made by the Lender which are eligible
for such guarantee under the Act, the regulations issued under the
Act and the Rules and Regulations and policies of the Agency with the
exception of those pertaining to Pennsylvania Residency/Domicile,
which Act, regulations, Rules and Regulations and policies as they
may be from time to time amended are made part of this Agreement.
2. The Agency shall guarantee loans without regard to sex, age, race,
color, religion, handicapped status, income, national origin or any
other basis prohibited by applicable law and the Lender will not
discriminate in the making of loans to eligible borrowers or in the
treatment of such borrowers on any prohibited basis.
3. On all loans guaranteed, the Agency agrees to obtain maximum
reinsurance by means of an agreement with the Federal Government
pursuant to the Act.
4. The Lender authorizes the Agency to act as its representative with
respect to retaining the school's statement of the student's
enrollment and need. This document will be retained for the five-year
period as required of the Lender by federal regulations.
5. The Lender shall maintain for all loans guaranteed a system of
records and accounts, shall afford access thereto, and shall furnish
such periodic and separate reports as may reasonably be required by
the U.S. Secretary of Education and the Agency, under the Act,
regulations, Rules and Regulations and policies identified above. For
loans paid in full or otherwise discharged, the records shall be
retained by the Lender as required by the Act, regulations, Rules and
Regulations, and policies identified above.
6. The Agency agrees to purchase eligible loans made by the Lender
provided that such loans are in default (as defined by the Act,
regulations, Rules and Regulations and policies identified above);
the loan was made in accordance with the Act, regulations, Rules and
Regulations and policies identified above; the Lender has otherwise
exercised due diligence in the making, servicing, and collection of
such loans; and, title to the loan note has been subrogated to the
Agency by the Lender.
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7. The Lender agrees that the Agency may assign its obligation to
guarantee repayment of a loan made hereunder to another guaranty
agency which holds a 428(b) Agreement with the Secretary of the
Department of Education.
8. Failure of the Lender to comply with the terms hereof with respect to
an individual loan shall not invalidate the guarantee of the Agency
to the Lender with respect to other loans held in compliance with the
terms of this Agreement.
9. Either party may terminate this agreement at any time upon 120 days'
notice in writing to the other party by registered or certified mail.
All rights, duties and obligations hereunder shall immediately cease
upon termination, except the rights and obligations of the parties
which existed as of the date of termination.
10. The lender wishes to participate in the following programs:
(Please check all applicable programs)
X Federal ▇▇▇▇▇▇▇▇ Loan Programs (includes
--- Subsidized and Unsubsidized)
X Federal PLUS Loan Program (Parent Loan Program)
---
X Federal Consolidation Loan Program
---
IN WITNESS WHEREOF, the Lender and the Agency have caused this Agreement to
be duly executed and delivered this ______ day of ____________________, 19____.
STAR BANK, NATIONAL ASSOCIATION, PENNSYLVANIA HIGHER EDUCATION
AS TRUSTEE FOR CRESTAR STUDENT LOAN ASSISTANCE AGENCY
TRUST 1997-1
Lender Name
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Authorized Signature
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Title Title
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D.E. Lender Code Number
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Federal Tax Identification Number
Approved as to form and legality this Approved as to form and legality this
_____ day of ______________, 199____. _____ day of ______________, 199____.
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PHEAA Legal Counsel Deputy Attorney General
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PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY
ELIGIBLE HOLDER AGREEMENT
THIS AGREEMENT is made this ____ day of _________, 1997, by and
between the PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY, a public
corporation organized under the laws of the Commonwealth of Pennsylvania with
its principal office at ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇-▇▇▇▇ (herein called "Agency") and STAR BANK, NATIONAL ASSOCIATION, AS
TRUSTEE FOR CRESTAR STUDENT LOAN TRUST 1997-1, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇,
▇▇▇▇ ▇▇▇▇▇.
(herein called the "Holder")
W I T N E S S E T H:
WHEREAS, the Agency was created by the Act of August 7, 1963, P.L.
549 (herein called the "Act") for the purpose of improving higher educational
opportunities and to that end the Agency is empowered to guarantee loans of
money.
WHEREAS, the Holder wishes to become an approved holder of loans
which are guaranteed by the Agency and were transferred, conveyed, sold or
assigned to the Holder by an eligible lender in the Agency's program.
NOW THEREFORE, the parties hereto, in consideration of the mutual
promises hereinafter set forth, do covenant and agree as follows:
1. Within such limits as may be set by it, the Agency shall
guarantee the full amount of all loans held by the Holder
which are eligible for such guarantee under the Act, the
regulations issued under the Act and the Rules and Regulations
and policies of the Agency, which Act, regulations, Rules and
Regulations and policies as they may be from time to time
amended are made part of this Agreement.
2. The Agency agrees to purchase eligible loans held by the
Holder provided such loans are in default (as defined by the
Act, regulations, Rules and Regulations and policies
identified above); the loan was made in accordance with the
Act, regulations, Rules and Regulations and policies
identified above; the Holder has otherwise exercised due
diligence in the servicing and collection of such loans; and,
title to the loan note has been subrogated to the Agency.
3. The Holder shall maintain for all loans guaranteed a system of
records and accounts, shall afford access thereto, and shall
furnish such periodic and separate reports as my reasonably be
required by the U.S. Secretary of Education and the Agency,
under the Act, regulations, Rules and Regulations and policies
identified above. For loans paid in full or otherwise
discharged the records shall be retained by the Holder as
required by the Act, regulations, Rules and Regulations, and
policies identified above.
4. The Holder agrees to comply with all applicable Federal and
State laws.
5. The Agency shall guarantee loans without regard to sex, age,
race, color, religion, handicapped status, income, national
origin or any other basis prohibited by applicable law and the
Holder shall not discriminate in the treatment of any eligible
borrower on any prohibited basis.
6. This Agreement shall apply to any and all loans held by the
Holder which are (i) guaranteed by the Agency and (ii) were
transferred, conveyed, sold or assigned to the Holder by an
eligible lender in the Agency's program.
7. This Agreement may be terminated by the Agency in the manner
provided for by the Agency's Rules and Regulations or by the
Holder upon thirty (30) days written notice to the Agency. The
Agency may suspend or limit this Agreement in the manner
provided for by the Agency's Rules and Regulations.
Termination, limitation or suspension of this Agreement shall
not affect the coverage of loans previously guaranteed.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement
and shall be deemed to have executed such on the day, month and year first above
written.
PENNSYLVANIA HIGHER EDUCATION
ASSISTANCE AGENCY
ATTEST:
--------------------------------- BY: _________________________________
---------------------------------
Title
ATTEST: BY: STAR BANK, NATIONAL ASSOCIATION,
AS TRUSTEE FOR CRESTAR
STUDENT LOAN TRUST 1997-1
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Federal Tax ID# _____________________
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Title
Approved as to form and legality this Approved as to form and legality this
____ day of _________, 199_. ____ day of _________, 199_.
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PHEAA Legal Counsel Deputy Attorney General
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