Sec. 10a-194j. Credit Union League of Connecticut Student Loan Program.
Definitions. Allocation from reserves to guarantee qualifying student loans. (a) As
used in this section:
(1) "Credit Union League of Connecticut Student Loan Program" or "program"
means a program operated by the Credit Union League of Connecticut that offers low
interest rate loans to students who experience difficulty obtaining financing for post-secondary education because of more restrictive underwriting criteria, reduced access
to home equity loans or decreased market value of homes;
(2) "Eligible student" means (A) any student enrolled in an accredited institution
of higher education in this state, or (B) any resident of this state enrolled in an accredited
institution of higher education;
(3) "Participating credit union" means any credit union in this state participating in
the program; and
(4) "Qualifying student loan" means a loan to an eligible student that is (A) originated by a participating credit union; (B) subject to the participating credit union's
underwriting standards applicable to student loans; (C) subject to an interest rate not
exceeding six per cent per annum for loans with a one-year deferral of commencement
of payment of interest or subject to an interest rate not exceeding five and three-quarters
per cent per annum for loans without any deferral of commencement of payment of
interest; and (D) disbursed on or before December 31, 2009, or disbursed at a later date
if approved by action of the board of directors of the authority.
(b) The Connecticut Health and Educational Facilities Authority shall allocate from
its reserves an amount not to exceed three million five hundred thousand dollars in the
aggregate for purposes of guaranteeing qualifying student loans under the Credit Union
League of Connecticut Student Loan Program. The funds so allocated shall be held by
the authority in a separate account to be known as the "Credit Union League Student
Loan Program protection account" and such funds shall revert to the authority's general
reserves at such time as the funds are no longer needed to be held for the program. Said
account shall be used to provide a first loss guarantee to participating credit unions not
to exceed twenty per cent of the outstanding principal amount of qualifying student
loans originated by such credit unions. The amount of any individual loan guaranteed
by the authority shall not exceed twenty per cent of the original principal balance thereof.
(P.A. 09-110, S. 1.)
History: P.A. 09-110 effective June 5, 2009.
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