Section 110 ILCS 947/135 - DefinitionsIn this Act, and except to the extent that any of the following words or phrases is specifically qualified by its context:
(a) "Purchase Program" means the Commission exercising its power to establish a secondary market for certain loans of borrowers by the purchase thereof with the proceeds from the sale of the bonds of the Commission issued pursuant to this Act, with the earnings received by the Commission from any authorized investment, or with eligible loan receipts.(b) "Eligible loans" means loans of borrowers made, purchased, or guaranteed by or transferred to the Commission, including but not limited to loans on which: (1) the borrower is contractually delinquent in his repayment obligations within time limitations specified by the Commission; or(2) the borrower is temporarily unable to meet his repayment obligations for reasons of unemployment, or financial, medical or other hardship as determined by the Commission; or(3) the borrower has at least one loan held by the Commission under the Purchase Program; or(4) the borrower's lender, because of the bankruptcy of that lender, is no longer able or the Commission otherwise determines that such lender is no longer able to satisfactorily service the borrower's loan or fulfill the borrower's credit needs under the Commission's program; or(5) the borrower has defaulted on his loan, but has subsequently established a satisfactory repayment history under the rules of the Commission; and notwithstanding the limitations of this Act, the Purchase Program shall have the authority to purchase those defaulted accounts in order to restore the borrower's credit rating and continued eligibility for benefits under other Federal student assistance programs. Nothing in this Act shall be construed to prohibit the Commission from making or purchasing any category of loans if the Commission determines that the making or purchasing of such loans would tend to make more loans available to eligible borrowers.
Nothing in this Act shall be construed to excuse the holder of an eligible loan from exercising reasonable care and diligence in the making and collecting of such loans. If the Commission finds that the lender has substantially failed to exercise that care and diligence, the Commission shall disqualify the lender from participation in Commission programs until the Commission is satisfied that the lender's failure has ceased and finds that there is reasonable assurance that the lender will in the future exercise necessary care and diligence and comply with the rules and regulations of the Commission.
(c) "Eligible loan receipts" means any of the following: (1) Principal, accrued interest, late charges and other sums paid on eligible loans held by the Commission.(2) Reimbursements paid by the federal government, the State of Illinois, the Commission exercising its power to guarantee the loans of borrowers, or any other source held by the Commission.(3) Accruing interest payments and special allowance payments paid by the federal government pursuant to the Higher Education Act of 1965 or any other federal statute providing for federal payment of interest and special allowances on loans or by any other source on eligible loans held by the Commission.(4) Any other sums paid by any source to the Commission on or for eligible loans held by the Commission.(d) "Bonds" means bonds, notes, and other evidences of borrowing of the Commission.Amended by P.A. 100-0201,§ 355, eff. 8/18/2017.P.A. 88-553; 89-442, eff. 12/21/1995.