§14A-3-702. Definitions.
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/ok/title-14a-consumer-credit-code/14a-3-702A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The term "covered educational institution" means any educational institution that offers a postsecondary educational degree, certificate, or program of study (including any institution of higher education) and includes an agent, officer, or employee of the educational institution.
(a)The term "gift" means any gratuity, favor, discount,
entertainment, hospitality, loan, or other item having
more than a de minimis monetary value, including
services, transportation, lodging, or meals, whether
provided in kind, by purchase of a ticket, payment in
advance, or reimbursement after the expense has been
incurred. Gift includes an item described in this
paragraph provided to a family member of an officer,
employee, or agent of a covered educational
institution, or to any other individual based on that
individual's relationship with the officer, employee,
or agent, if the item is provided with the knowledge
and acquiescence of the officer, employee, or agent;
and the officer, employee, or agent has reason to
believe the item was provided because of the official
position of the officer, employee, or agent.
(b)Gift does not include:
(i)standard informational material related to a
loan, default aversion, default prevention, or
financial literacy;
(ii)food, refreshments, training, or informational
material furnished to an officer, employee, or
agent of a covered educational institution, as an
integral part of a training session or through
participation in an advisory council that is
designed to improve the service of the private
educational lender to the covered educational
institution, if such training or participation
contributes to the professional development of
the officer, employee, or agent of the covered
educational institution;
(iii)favorable terms, conditions, and borrower on a
private education loan provided to a student
employed by the covered educational institution,
if such terms, conditions, or benefits are not
provided because of the student's employment with
the covered educational institution;
(iv)the provision of financial literacy counseling or
services, including counseling or services
provided in coordination with a covered
educational institution, to the extent that such
counseling or services are not undertaken to
secure:
(aa)applications for private education loans or
private education loan volume;
(bb)applications or loan volume for any loan
made, insured, or guaranteed under Title IV
of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.);
(cc)the purchase of a product or service of a
specific private educational lender;
(dd)philanthropic contributions to a covered
educational institution from a private
educational lender that are unrelated to
private education loans and are not made in
exchange for any advantage related to
private education loans; or
(ee)state education grants, scholarships, or
financial aid funds administered by or on
behalf of a state.
(3)The term "institution of higher education" has the same meaning as in 20 U.S.C. 1002.
(4)The term "postsecondary educational expenses" means any of the expenses that are included as part of the cost of attendance of a student, as defined in 20 U.S.C. 1087.
(5)The term "preferred lender arrangement" has the same meaning as in Section 151 of the Higher Education Act of 1965.
(6)The term "private educational lender" means:
(a)a financial institution, as defined in 12 U.S.C. 1813
that solicits, makes, or extends private education
loans;
(b)a Federal credit union, as defined in 12 U.S.C. 1752
that solicits, makes, or extends private education
loans; and
(c)any other person engaged in the business of
soliciting, making, or extending private education
loans.
(7)The term "private education loan" means a loan provided by a private educational lender that:
(a)is not made, insured, or guaranteed under 20 U.S.C.
1070 et seq.;
(b)is issued expressly for postsecondary educational
expenses to a borrower, regardless of whether the loan
is provided through the educational institution that
the subject student attends or directly to the
borrower from the private educational lender; and
(c)does not include an extension of credit under an open-
end consumer credit plan, a reverse mortgage
transaction, a residential mortgage transaction, or
any other loan that is secured by real property or a
dwelling.
(8)The term "revenue sharing" means an arrangement between a covered educational institution and a private educational lender under which:
(a)a private educational lender provides or issues
private education loans with respect to students
attending the covered educational institution;
(b)the covered educational institution recommends to
students or others the private educational lender or
the private education loans of the private educational
lender; and
(c)the private educational lender pays a fee or provides
other material benefits, including profit sharing, to
the covered educational institution in connection with
the private education loans provided to students
attending the covered educational institution or a
borrower acting on behalf of a student. Added by Laws 2013, c. 99, § 8, eff. July 1, 2013.