As used in this article, unless the context requires otherwise, the following terms have the following meanings:
(a) “Executive director” means the Executive Director of the California Educational Facilities Authority.
(b) “Financial institution” means a bank as defined under paragraph (4) of subdivision (b) of Section 1201 of the Commercial Code, including a federal- or state-chartered bank, that has been approved by the authority to enroll qualified loans in the program and has agreed to all terms and conditions set forth in this article and as may be required by the authority. A financial institution shall have a branch or office, or be otherwise present for jurisdictional purposes, in California.
(c) “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:
(1) Depositing all required fees paid by the financial institution and the qualified borrower.
(2) Depositing contributions made by the state and, if applicable, the federal government or other sources.
(3) Covering losses on enrolled qualified loans sustained by the financial institution by disbursing funds accumulated in the loss reserve account.
(d) “Private student loan” means a loan issued by a private lending institution for the costs of attendance at any public or private nonprofit college or university in the United States, notwithstanding the definitions in subdivisions (i), (k), and (l) of Section 94110.
(e) “Program” means the California Student Loan Refinancing Program created pursuant to this article.
(f) “Qualified borrower” means an individual meeting all of the following requirements:
(1) Residency in California.
(2) Completion of a bachelor’s degree.
(3) Employment in a public service program or by a nonprofit organization located in California.
(4) Able to repay, as determined by the authority.
(5) Meeting the criteria established by the financial institution and the authority.
(g) “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. A qualified loan made under the program may be made with the interest rates, fees, and other terms and conditions agreed upon by the financial institution and the qualified borrower. Only a loan determined by the authority to be an educational loan nondischargeable in bankruptcy as set forth in Section 523 of Title 11 of the United States Code as that section existed on August 15, 2014, shall be a qualified loan eligible for financing under this article.
(Added by Stats. 2014, Ch. 816, Sec. 2. (AB 2377) Effective January 1, 2015.)