New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter XX - Higher Education Services Corporation
Subchapter D - The New York Higher Education Loan Program (nyhelps)
Part 2213 - The New York Higher Education Loan Program (nyhelps)
Section 2213.17 - Disclosure requirements for participating lenders
Current through Register Vol. 46, No. 39, September 25, 2024
The disclosure requirements set forth in this section shall occur on or after February 14, 2010. Lenders must also comply with all other disclosure requirements required by applicable New York State and Federal law and regulation (as well as any applicable law and regulation in the state in which the lender is located).
(a) Program loan disclosures at time of program loan approval. At the time of approval of a program loan application, and before program loan consummation, the lender, or its servicer (acting on behalf of the lender), shall clearly and conspicuously disclose to the borrower all of the applicable disclosure requirements contained in the Federal Truth in Lending Act (Regulation Z) as set forth in 12 CFR part 226, subpart F.
(b) Self-certification form.
(c) Final disclosures. After the borrower has accepted the program loan and returned the self-certification form, the lender, or its servicer (acting on behalf of the lender), shall disclose to the borrower the required disclosures described in the Federal Truth in Lending Act (Regulation Z) as set forth in 12 CFR part 226, subpart F, as amended from time to time.
(d) Penalties. A lender's failure to perform all disclosure requirements may result in the lender's ineligibility to receive reimbursement from the applicable default reserve fund for any program loan in which the lender failed to make such disclosure.
(e) Right to cancel. A borrower may cancel a program loan, without penalty, until midnight of the third business day following the date on which the borrower receives the disclosures required by subdivision (c) of this section. No funds may be disbursed for a program loan until the three-business day period has expired.
(f) Prepayment. Borrowers may make prepayments on their program loan balance without penalty.
