Notwithstanding the other provisions of this article, the authority may facilitate the development of a secondary market for a qualified loan under the program by providing security for that loan, thereby increasing participation in the program by financial institutions and improving access to qualified borrowers to refinance private student loans. For purposes of this section, the actions that the authority may take include, but are not necessarily limited to, assigning all or a portion of any loss reserve account to any other entity in connection with providing security for a qualified loan, including a trustee of a securitization trust, transferring a qualified loan from a financial institution to a securitization trust, and assisting underwriters in marketing a qualified loan to the secondary market.

(Added by Stats. 2014, Ch. 816, Sec. 2. (AB 2377) Effective January 1, 2015.)

Terms Used In California Education Code 94164

  • Authority: means the California Educational Facilities Authority created by this chapter or any board, body, commission, department, or officer succeeding to the principal functions of the authority or to whom the power conferred upon the authority by this chapter is given by law. See California Education Code 94110
  • Financial institution: means a bank as defined under paragraph (4) of subdivision (b) of §. See California Education Code 94157
  • Loss reserve account: means an account in the State Treasury or in any financial institution that is established and maintained by the authority for the benefit of a financial institution participating in the program for the purposes of any of the following:

    California Education Code 94157

  • Program: means the California Student Loan Refinancing Program created pursuant to this article. See California Education Code 94157
  • Qualified loan: means a loan or a portion of a loan made by a financial institution to a qualified borrower to refinance a private student loan under the program. See California Education Code 94157
  • Trustee: A person or institution holding and administering property in trust.
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