§ 621. Prohibition of gifts made by lending institutions to covered institutions and their employees. 1. A lending institution may not, directly or indirectly, offer or provide any gift to a covered institution or a covered institution employee, in exchange for any advantage or consideration provided to such lending institution related to its educational loan activities.

Terms Used In N.Y. Education Law 621

  • Covered institution: shall mean any college, vocational institution, or approved program as defined in section six hundred one of this title. See N.Y. Education Law 620
  • Covered institution employee: shall mean any employee, agent, contractor, director, officer or trustee of a covered institution. See N.Y. Education Law 620
  • Educational loan: shall mean any loan that is made, insured, or guaranteed under Part B of Title IV of the Federal Higher Education Act of nineteen hundred sixty-five, as amended, any high risk loan or any private loan issued by a lending institution for the purposes of paying for or financing higher education expenses. See N.Y. Education Law 620
  • Lending institution: shall mean :

    a. See N.Y. Education Law 620
  • Revenue sharing: shall mean any arrangement whereby a lending institution pays a covered institution or an affiliated entity or organization of such covered institution a percentage of the principal of each loan directed towards the lending institution from a borrower at the covered institution. See N.Y. Education Law 620

2. A lending institution may not engage in revenue sharing with a covered institution.

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