(110 ILCS 947/135)
In 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
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
(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
(Source: P.A. 100-201, eff. 8-18-17.)