Before purchasing a guaranteed educational loan note or an education loan note under this subchapter, the Student Loan Authority Division of the Arkansas Development Finance Authority shall reasonably determine that:
(1) The guaranteed educational loan note or education loan note represents a guaranteed educational loan or education loan actually disbursed to a qualified borrower;
(2) Due diligence both in making and collecting the guaranteed educational loan or education loan has been exercised with respect to that guaranteed educational loan or education loan;
(3) The guaranteed educational loan or education loan meets such other reasonable criteria as may be established from time to time by the Arkansas Development Finance Authority; and
(4) Other defects do not exist affecting the ability of the guaranteed educational loan or education loan to be guaranteed.
Structure Arkansas Code
Title 15 - Natural Resources and Economic Development
Subtitle 1 - Development Of Economic And Natural Resources Generally
Chapter 5 - Arkansas Development Finance Authority
Subchapter 19 - Arkansas Student Loan Financing Act
§ 15-5-1904. Cash funds — Sufficient redemption fund required
§ 15-5-1905. Excess funds — Allowable investments
§ 15-5-1906. Trust indenture funds and accounts