(a) a national or state chartered bank, mutual savings bank, savings
and loan association, or credit union that:
(1) is subject to examination and supervision in its capacity as a
lender by an agency of the United States or of the state in which its
principal place of operation is established; and
(2) does not make or hold loans to students under the federal
guaranteed student loan program that total more than one-half of its
consumer credit loan dollar volume, including home mortgages, unless it
is a bank that is wholly owned by a state; or
(b) a pension fund as defined in the federal employees retirement
income security act; or
(c) an insurance company that is subject to examination and
supervision by an agency of the United States or a state; or
(d) in any state, a single agency of the state or a single private
nonprofit agency designated by the state; or
(e) for purposes only of purchasing and holding loans made by other
lenders under the federal guaranteed student loan program, the student
loan marketing association or an agency of any state functioning as a
secondary market.
3. "Guaranteed education loan" as used in this section shall mean and
include any loan made for the purpose of financing higher education
which is made under the authority of Part B of Title IV of the Higher
Education Act of 1965 or under the authority of section six hundred
eighty of this chapter.
4. Any banking institution or other eligible lender as such terms are
defined in this section which sells a student loan held by it to the
federal student loan marketing association in the manner authorized by
the federal guaranteed student loan program and applicable provisions of
federal law shall be required to provide written notification of such
sale to the student borrower by mail not later than the fifteenth day
next succeeding the date of such sale.
5. Whenever a banking institution or other eligible lender as such
terms are defined in this section sells a guaranteed education loan to
another banking institution or eligible lender, such selling institution
shall notify the borrower in writing within fifteen days of such sale.
Such notice shall include the name and address of the institution which
has purchased such loan. The selling institution shall also notify the
New York state higher education services corporation or other guarantor
of such sale. Notice shall include:
(a) the name and address of the institution which has purchased the
loan; and
(b) the name, address and social security number of the borrower and
the borrower's account number.