§ 2405-a. Education loans. (1) For purposes of this section, the\nfollowing words and terms shall have the following meaning unless the\ncontext shall indicate another or different meaning or intent:\n (a) "Corporation" shall mean the New York state higher education\nservices corporation.\n (b) "Education Loan" shall mean: (i) a New York higher education loan\nprogram loan made pursuant to part v of article fourteen of the\neducation law; or (ii) a loan under Part B of Title IV of the Higher\nEducation Act of nineteen hundred sixty-five, as amended, including but\nnot limited to a loan described in subdivision ten of section\ntwenty-four hundred two of this part; provided, that the borrower shall\nbe required to apply the net proceeds of such loans to pay the student's\ncosts of post-secondary education or to repay one or more such loans\nincurred for such purpose.\n (2) In addition to the powers of the agency pursuant to the other\nsections of this title, the agency shall have power:\n (a) To enter into one or more agreements with the corporation and to\nperform or contract for the performance of its obligations under any\nsuch agreement;\n (b) To make and contract to make and to acquire and contract to\nacquire education loans and to enter into advance commitments for the\npurchase of said education loans;\n (c) Subject to any agreement with bondholders or noteholders, to\ninvest moneys of the agency not required for immediate use, including\nproceeds from the sale of any bonds or notes, in education loans;\n (d) To make and execute contracts for the marketing, origination,\nservicing, collection, administration, guarantee, securing, and\nfinancing of education loans originated or acquired by the agency\npursuant to this title, and to pay the reasonable value of services\nrendered to the agency pursuant to those contracts;\n (e) Subject to any agreement with bondholders or noteholders, to\nrenegotiate or refinance any education loan that has been acquired by\nthe agency or which the agency has committed to purchase that is in\ndefault; to waive any default or consent to the modification of the\nterms or any such education loan; to forgive all or part of any\nindebtedness; and to commence any action or proceeding to protect or\nenforce any right conferred upon it with respect to any such education\nloan by law, loan agreement, contract or other agreement;\n (f) To prescribe standards and criteria for the origination of\neducation loans to be eligible for acquisition by the agency and for\neducation loans purchased by the agency;\n (g) Subject to any agreement with bondholders or noteholders, to sell\nany education loans made or acquired by the agency at public or private\nsale and at such price or prices and on such terms as the agency shall\ndetermine;\n (h) To establish, revise from time to time, charge and collect such\npremiums or fees in connection with education loans and its\nparticipation in the New York higher education loan program as the\nagency shall determine; and\n (i) Subject to any agreement with bondholders or noteholders, to\ninvest moneys pledged to secure bonds issued for the corporate purposes\nauthorized by this section not required for immediate use in investments\nauthorized for investment of state funds under section ninety-eight or\nninety-eight-a of the state finance law.\n (3) The agency shall have the power and is hereby authorized from time\nto time to issue its bonds and notes pursuant to section two thousand\nfour hundred six of this title for the corporate purposes authorized by\nthis section, including without limitation for the purposes of financing\nand refinancing education loans and of refunding any bonds or notes\nissued for such purpose.\n (4) Each lender or service provider who makes a representation or\nwarranty to the agency with respect to an education loan shall be liable\nto the agency for any damages suffered by the agency by reason of the\nuntruth of such represent
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