Mich. Admin. Code R. 390.1436 - Disbursement of loan proceeds
Rule 36.
(1) The
disbursement of loan proceeds by a lender shall be in compliance with the due
diligence requirements for the disbursement of a loan set forth by
law.
(2) Loan proceeds shall be
disbursed in a manner permitted by law.
(3) Neither a lender nor a school may obtain
a borrower's authorization to endorse a disbursement check on behalf of a
borrower.
(4) The check, after
being presented for payment, shall be retained by the lender either in original
form or on microform for the period prescribed by the provisions of
R
390.1413.
(5) When a participating school receives loan
proceeds from a lender, the school shall process the proceeds based on
requirements established by the secretary in the provisions of 34 C.F.R.
S682.604. These provisions are adopted by reference in
R 390.1491.
(6) A school may only retain loan proceeds as
specified by the secretary in the provisions of 34 C.F.R. SS682.604 to 682.607.
These provisions are adopted by reference in
R 390.1491.
(7) With approval from the authority, a
lender may disburse an educational loan during the stated loan period, but
after a borrower has ceased to be enrolled on at least a half-time basis or
after the expiration of the loan period as indicated in the loan
application.
Notes
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