Sec. 10. (a) Whenever the commission or its designee has reason to believe that a lender or an eligible institution fails to meet the eligibility criteria for approved lenders, the commission or its designee shall call the matter to the attention of the lender or eligible institution. The lender or eligible institution is entitled to a reasonable opportunity to respond to the allegation and, if the alleged violation occurred, to show that it is corrected or to submit an acceptable plan detailing measures that will be taken to correct the violation and prevent its recurrence.
(b) Upon finding, after reasonable notice and hearing, that a lender or eligible institution fails to meet the eligibility criteria for approved lenders, the commission may:
(1) limit the number or total amount of loans which the lender or eligible institution may make under this chapter;
(2) limit the percentage of an eligible institution's total receipts for tuition and fees which may be derived from loans under this chapter for a stated period;
(3) require an eligible institution to obtain a bond, in an appropriate amount, to provide assurance that it will be able to meet its financial obligations to students enrolled in eligible institutions who received loans under this chapter; and
(4) impose other conditions or requirements on lenders or eligible institutions, or both, that:
(A) are reasonable and appropriate as a direct means of correcting a violation;
(B) have a high probability for successfully correcting the violation; and
(C) will promote the purposes of this chapter.
[Pre-2007 Higher Education Recodification Citation: 20-12-21.1-3.]
As added by P.L.2-2007, SEC.257. Amended by P.L.86-2018, SEC.187.