CHAPTER 19-33 Education Loan Bill of Rights Act
§ 19-33-4. Registration of education loan servicers.
(a) each individual or entity who or that solutions any pupil education loan given to a student-based loan debtor after 1, 2019, shall register with the department as a student loan servicer no later than September 30, 2019, or within thirty (30) days of conducting servicing of student education loans, whichever is earlier july.
(b) The enrollment conditions for this chapter shall maybe perhaps not connect with:
(1) anyone or entity who or that solutions less than six (6) pupil training loans in this state during any consecutive twelve-month (12) duration; and
(2) anybody or entity that solutions loans for training apart from postsecondary training.
(c) as an element of that enrollment, the individual or entity shall:
(1) finish an enrollment into the type promulgated by the division supplying the information required by the application form;
(2) spend a yearly enrollment cost of 1 thousand bucks ($1,000);
(3) supply a bond when the registrant will be the obligor and which shall set you back their state for the employment of their state as well as the person who could have a factor in action up against the obligor of this relationship underneath the conditions of the chapter. The relationship will be perpetual and will probably be trained upon the obligor conforming to your conditions with this chapter and all sorts of laws thereunder together with obligor will probably pay into the continuing state and also to anyone all money that will be due or because of their state or even anyone through the obligor underneath the conditions of the chapter. The relationship shall offer notice directly towards the division in the way specified because of the department in the event that relationship is canceled by the surety for almost any explanation. The relationship will be when you look at the amount of fifty thousand dollars ($50,000);
(4) Appoint, and thereafter keep, an agent that is resident this state with authority to simply accept solution of process for the registrant in this state, like the procedure for garnishment:
(i) solution of process upon the representative will probably be considered service that is sufficient the registrant; and
(ii) Any procedure, including the means of garnishment, might be offered upon the manager, as representative regarding the registrant, in case no resident agent can be located upon whom solution could be made, or even the registrant has did not designate a resident agent as needed.
(d) No enrollment will probably be transferable or assignable. A big change in ownership of lower than twenty-five per cent (25%) regarding the voting stock or equity passions of a registrant shall never be considered a transfer or project associated with enrollment. An alteration in ownership of twenty-five % (25%) or maybe more regarding the voting stock or equity passions shall need notification into the division, and enrollment because of the transferee/assignee within fifteen (15) times of the noticeable improvement in ownership. An alteration in title shall need notification to your division within fifteen (15) times.
( ag e) Any registrant shall, within twenty-four (24) hours after real knowledge, notify the division associated with the event of any of this events that are following
(1) The organization of bankruptcy, receivership, reorganization, or insolvency procedures regarding a registrant;
(2) The organization of every government that is adverse against a registrant; or
(3) Any felony indictment or conviction of every registrant or any officers, directors, owners, workers, users, or partners thereof.
(f) education loan servicers shall designate and supply email address for a person to represent the education loan servicer in communications with all the division. These records will probably be updated within ten (10) times of any noticeable change thereto.
(g) enrollment will be legitimate for starters calendar 12 months, and education loan servicers will probably be necessary to restore their enrollment with all the division yearly.
(h) The division may evaluate a superb of ten thousand bucks ($10,000) on any education loan servicer that solutions pupil training loans for thirty (30) or higher days without registering and complying utilizing the conditions provided in this part.