Section 2720.90  Guarantee Transfers

a)         ISAC may transfer loan guarantees to or from another guarantor, as specified in Section 428(b)(2)(E) of the Higher Education Act of 1965 (HEA), as amended (20 USCA 1078(b)), provided:

1)         the loan guarantees are insured (see Section 428(b) of the HEA);

2)         an agreement has been entered into between ISAC and:

A)        the other guaranty agency;

B)        an agent of the guaranty agency, who has been approved by the U.S. Secretary of Education; or

C)        the U.S. Secretary of Education or an agent thereof;

3)         the transfer has been approved by the holder of the loan.

b)         Notwithstanding any provision of Section 2720.42, regarding all loans being held by one holder, a loan guarantee may be transferred to ISAC from another guaranty agency.

(Source:  Amended at 21 Ill. Reg. 11038, effective July 18, 1997)