§ 21-16-4-10 — Eligibility criteria violation procedures

(a) Whenever the commission or its designee
has reason to believe that a lender or an eligible institution fails to meet
the eligibility criteria for approved lenders, the commission or its
designee shall call the matter to the attention of the lender or eligible
institution. The lender or eligible institution is entitled to a reasonable
opportunity to respond to the allegation and, if the alleged violation
occurred, to show that it is corrected or to submit an acceptable plan
detailing measures that will be taken to correct the violation and
prevent its recurrence.
(b) Upon finding, after reasonable notice and hearing, that a lender
or eligible institution fails to meet the eligibility criteria for approved
lenders, the commission may:
(1) limit the number or total amount of loans which the lender or
eligible institution may make under this chapter;
(2) limit the percentage of an eligible institution's total receipts for
tuition and fees which may be derived from loans under this
chapter for a stated period;
(3) require an eligible institution to obtain a bond, in an
appropriate amount, to provide assurance that it will be able to
meet its financial obligations to students enrolled in eligible
institutions who received loans under this chapter; and
(4) impose other conditions or requirements on lenders or eligible
institutions, or both, that:
(A) are reasonable and appropriate as a direct means of
correcting a violation;
(B) have a high probability for successfully correcting the
violation; and
(C) will promote the purposes of this chapter.
[Pre-2007 Higher Education Recodification Citation:
20-12-21.1-3.]

Legislative History

As added by P.L.2-2007, SEC.257. Amended by P.L.86-2018, SEC.187.