Exhibit 10.8
Northstar Guarantee Inc.
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LENDER AGREEMENT
FOR GUARANTEE OF STUDENT LOANS
WITH FEDERAL REINSURANCE
(for loans pursuant to the Higher
Education Act of 1965, as amended;)
WHEREAS First Bank National Assoc. as Trustee for Education Loans, Inc.
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CORPORATE NAME
Located at
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hereinafter referred to as the "Lender," wishes to be able to secure the
guarantee of loans made to students pursuing educational programs at eligible
institutions (as defined in the Act), and to parents of such students, pursuant
to the Higher Education Act of 1965, as amended (hereinafter referred to as the
"Act"), and
WHEREAS Lender represents that it is an "eligible lender" under the provisions
of the Act, the regulations issued under the Act (the "Regulations"), and the
Rules and Regulations and Policies (the "Rules") of Northstar Guarantee Inc.,
hereinafter referred to as "Northstar," and
WHEREAS Northstar, relying upon Lender's representation that it qualifies as an
eligible lender under the provisions of the Act, the Regulations and the Rules
of Northstar and wishes to encourage the making of such loans by the Lender in
accordance with the policy expressed in the Act,
NOW THEREFORE, it is mutually agreed that:
1. Within such limits as may be set by it, Northstar shall guarantee the full
amount of all loans made by the Lender which are eligible for such
guarantee under the Act, the Regulations and the Rules of Northstar, which
Act, Regulations and Rules as they may be from time to time amended are
made part of this Agreement.
2. Northstar agrees to acquire eligible loans made by the Lender provided that
such loans are in default (as defined by the Act, Regulations and the
Rules); the Lender has made the loan in accordance with the Act,
Regulations and Rules; the Lender has requested preclaim assistance from
Northstar as required by the Rules of Northstar; the Lender has otherwise
exercised due diligence (within the meaning of the Act, Regulation and
Rules) in the making, servicing, and collection of such bans; and title to
the loan note has been subrogated to Northstar by the Lender.
3. On all loans guaranteed, Northstar agrees to obtain maximum reinsurance by
means of an agreement with the Federal Government pursuant to the Act and
such an agreement is now in force between Northstar and the Federal
Government.
4. Northstar agrees to take appropriate steps to assure that adequate sums are
always available to it so that it will be able to assure acquisition of
loans in default, which steps shall include but not be limited to regular
contributions to its Reserve Fund (hereinafter defined) from guarantee
fees. In this connection Northstar has established a reserve fund ("Reserve
Fund") as required by the Regulations and agrees to maintain such Reserve
Fund in accordance with the Regulations. Northstar shall make the required
deposits of its funds to the Reserve Fund it has established in accordance
with the Regulations and it will not use the funds in its Reserve Fund
except in accordance with the Regulations.
5. The Lender agrees to collect the guarantee fee, if any, prescribed by
Northstar from the borrower and to remit such fee to Northstar.
6. Northstar and the Lender agree that the guarantee on any ban shall be
effective for the term of the loan determined in accordance with the Act,
Regulations and Rules beginning on the date of receipt by Northstar of the
guarantee fee, if any is required, or, if no fee is required, beginning on
the date of disbursement by the Lender.
7. In making loans under the Act, the Lender will undertake to secure such
reductions in borrowers' obligations to pay interest on bans made by the
Lender as they may be eligible to receive under the Act and Regulations.
The Lender further agrees to comply with all applicable Federal and State
laws in addition to the Act and the Regulations.
8. The Lender shall cause to be maintained for all loans guaranteed a system
of records and accounts, and shall make provision for access thereto, and
shall furnish or cause to be furnished such periodic and separate reports
as may reasonably be required by the U.S. Secretary of Education and
Northstar, under the Act, Regulations and Rules. For loans paid in full or
otherwise discharged, the records shall be retained by or on behalf of the
Lender as required by the Act, Regulations and Rules.
9. Northstar shall guarantee loans without regard to sex, age, race, color,
religion, handicapped status, income, national origin or any other basis
prohibited by applicable law and the Lender will not discriminate in the
making of loans to eligible borrowers or in the treatment of such borrowers
on any prohibited basis.
10. This Agreement may be terminated by either party upon sixty (60) days
written notice to the other party. The termination notice shall specify a
termination date which shall not be sooner than sixty-five (65) days after
the mailing of the termination notice. Northstar may, in addition and at
its option, terminate, suspend or limit this Agreement in any other manner
provided for by Northstar's Rules. Any termination, limitation or
suspension of this Agreement shall not affect the guarantee with respect to
loans guaranteed prior to the date of such termination, limitation or
suspension.
Addendum attached.
IN WITNESS WHEREOF, the Lender and Northstar have caused this Agreement to be
duly executed and delivered this 15 day July, 1997.
LENDER:
First Bank National Association as Trustee for Education Loans, Inc.
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LENDER (Corporate Name)
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ 7/15/97
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By SIGNATURE DATE
x ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ITS Senior Vice Pres.
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PRINTED NAME
▇▇-▇▇▇▇▇▇▇ 8333405
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LENDER'S FEDERAL TAX ID NUMBER LENDER NUMBER (TO BE ASSIGNED)
GUARANTOR:
NORTHSTAR GUARANTEE INC.
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ 7/10/97
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BY SIGNATURE DATE
▇▇▇▇▇ ▇. ▇▇▇▇▇ Its Chief Financial Officer
