Mich. Admin. Code R. 390.1481 - Participating school standard of care; effect of failure to properly administer programs; effect of conviction or guilty plea of school owner or chief executive officer for misuse of loan funds
Rule 81.
(1) A
participating school shall be subject to the highest standard of care and
diligence in administering the educational loan programs and in accounting to
the authority for the funds received under those programs.
(2) An institution's failure to properly
administer the educational loan programs or to account for the funds it
receives under those programs shall constitute grounds for the termination of
the eligibility of the school to participate in the programs.
(3) If the owner of a participating school or
the chief executive officer is convicted of, or pleads guilty to, a crime
involving the unlawful acquisition, use, or expenditure of loan funds provided
through the authority's educational loan programs, the authority shall consider
that conviction as a violation of the participating school's duty to administer
the loan programs with the highest standards of care and diligence and as an
automatic ground for terminating the school's eligibility to participate in the
authority's educational loan programs.
Notes
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