Common use of Loan Assignment Clause in Contracts

Loan Assignment. (i) Except as pro- vided in paragraph (b)(8)(iii) of this sec- tion, the guaranty agency must allow a loan to be assigned only if the loan is fully disbursed and is assigned to— (A) An eligible lender; (B) A guaranty agency, in the case of a borrower’s default, death, total and permanent disability, or filing of a bankruptcy petition, or for other cir- cumstances approved by the Secretary, such as a loan made for attendance at a school that closed or a false certifi- cation claim; (C) An educational institution, whether or not it is an eligible lender, in connection with the institution’s re- payment to the agency or to the Sec- retary of a guarantee or a reinsurance claim payment made on a loan that was ineligible for the payment; (D) A Federal or State agency or an organization or corporation acting on behalf of such an agency and acting as a conservator, liquidator, or receiver of an eligible lender; or