Sec. 14. Upon default by a borrower on a loan guaranteed under this chapter, and before the commencement of a suit or other enforcement proceedings upon security for the loan, the holder of the guaranteed loan obligation shall promptly notify the commission and the commission shall pay the holder of that loan as soon as the amount is determined. The commission shall determine the amount of loss in accordance with its rules; however, the amount of loss may not exceed the unpaid balance of the principal amount and the unpaid accrued interest.
[Pre-2007 Higher Education Recodification Citation: 20-12-21.1-6(a).]
As added by P.L.2-2007, SEC.257.
Structure Indiana Code
Article 16. Earn Indiana Program; Student Loans; Legal Capacity to Contract for Student Loans
Chapter 4. Guaranteed Student Loan Program
21-16-4-1. Eligible Institutions; Approval by the Commission
21-16-4-2. Criteria for Approved Lenders
21-16-4-3. Lender Conditions; Guarantee Percentage; Interest Rate
21-16-4-5. Contracts and Guaranty Agreements
21-16-4-7. Eligible Institution's Qualified Status; Removal; Review
21-16-4-8. Collection of Insurance Premium
21-16-4-9. Administration of Loan Program
21-16-4-10. Eligibility Criteria Violation Procedures
21-16-4-11. Student Loan Program Fund; Administration
21-16-4-14. Default; Procedures
21-16-4-15. Payment on Loss; Subrogation Rights
21-16-4-16. Holder of Guarantee Loans; Duties
21-16-4-17. Dissolution of Loan Program
21-16-4-18. Legal Representation; Attorney General; Private Attorney