§ 31-102. Definitions.

(a)

Unless the context clearly requires otherwise, in this Subtitle the following words have the meanings indicated:

(1)

Authority means "Prince George's County Supplemental Higher Education Loan Authority."

(2)

Authority Loans means loans by the Authority to borrowers or to lending institutions for the purpose of funding education loans.

(3)

Bond resolution means the resolution or resolutions of the Authority and the indenture or trust agreement, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds.

(4)

Bonds means bonds, notes, or other evidences of obligation of the Authority issued under this Subtitle, including, without limitation, bond or revenue anticipation notes, notes in the nature of commercial paper, and refunding bonds.

(5)

Borrower means any person executing an education loan as an obligor thereunder.

(6)

Council means the County Council of Prince George's County, Maryland.

(7)

County means the body politic and corporate of the State of Maryland known as Prince George's County, Maryland.

(8)

County Executive means the chief elected executive official of Prince George's County, Maryland.

(9)

Cost of Attendance means the tuition and fees applicable to a student, together with the participating institution's estimate of other expenses reasonably related to cost of attendance at that institution including, without limitation, the cost of room and board, transportation, and books and supplies.

(10)

Default Insurance means insurance insuring education loans, Authority loans, or bonds against default.

(11)

Default Reserve Fund means a fund established under a bond resolution for the purpose of securing education loans, Authority loans, or bonds.

(12)

Education Loan means a loan which is made by the Authority or by a lending institution to a borrower in an amount not in excess of the maximum amount specified by the Authority to finance a part or all of a student's cost of attendance at a participating institution.

(13)

Education Loan Series Portfolio means all education loans made by a specific lending institution which are funded from the proceeds of an Authority loan to the lending institution out of the proceeds of a related specific bond issue through the Authority.

(14)

Institution means any public or private profit or nonprofit educational institution which provides a program of education beyond the high school level, and:

(A)

Admits as regular students only individuals having a certificate of graduation from high school or the recognized equivalent of a high school graduation certificate;

(B)

Provides an educational program for which it awards a Bachelor's Degree, or provides an educational program, admission into which is conditioned upon the prior attainment of a Bachelor's Degree or its equivalent, for which it awards a postgraduate degree, or provides not less than a two-year program which is acceptable for full credit toward such a degree, or offers not less than a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge;

(C)

Is accredited by a nationally recognized accrediting agency or association or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three (3) institutions which are so accredited;

(D)

Does not discriminate in the admission of students on the basis of race, color, religion, creed, sex, or national origin; and

(E)

Has a governing board, or its delegated institutional officials, which possesses final authority in all matters of local control, including educational policy, choice of personnel, determination of program, and financial management.

(15)

Institution affiliate means any corporation, partnership, joint venture, association, business trust, or similar entity organized under the laws of the United States or any state thereof or under the laws of the District of Columbia that directly or indirectly is controlled by, or is under common control by the same person or entity as, any institution or group of institutions or any other institution affiliate. For purposes of this definition, control means with respect to:

(A)

A corporation having stock, ownership, directly or indirectly, of more than fifty percent (50%) of the securities (as defined in Section 2(1) of the Securities Act of 1933, as amended) of any class or classes, the holders of which are ordinarily, in the absence of contingencies, entitled to elect a majority of the members of the Board of Directors or other governing body of such corporation;

(B)

A not for profit corporation not having stock, having the power to elect or appoint, directly or indirectly, a majority of the Board of Directors, trustees, or other governing body of such corporation; or

(C)

Any other entity, the power to direct the management of such entity through the ownership of at least a majority of its voting securities or the right to designate or elect a majority of the members of the Board of Directors or other governing body.

(16)

Lending Institution means:

(A)

An institution that is located within the Washington, D.C. Metropolitan Area and that has been designated by the Authority to be the recipient of an Authority loan;

(B)

An institution that is located outside of the Washington, D.C. Metropolitan Area that has or reasonably can be expected to have, if designated as a lending institution by the Authority, a substantial number of residents of the County as full-time students and that has been designated by the Authority to be the recipient of any Authority loan; or

(C)

An institution affiliate controlled by an institution or institutions located within the Washington, D.C. Metropolitan Area or an institution or institutions that has or in the aggregate have, or reasonably can be expected to have, if the institution affiliate controlled by such institution or institutions is designated as a lending institution, a substantial number of residents of the County as full-time students and that has been designated by the Authority to be the recipient of an Authority loan.

(17)

Loan Funding Deposit means moneys or other property deposited by a lending institution or a participating institution with the Authority or a trustee, in amounts the Authority determines necessary as a condition for an institution's participation in the Authority's programs to:

(A)

Provide security for bonds;

(B)

Fund a default reserve fund;

(C)

Acquire default insurance; and

(D)

Defray costs of the Authority.

(18)

Participating Institution means an institution designated by the Authority at which a student's cost of attendance may be paid in whole or in part from the proceeds of an education loan.

(19)

Person means and includes natural persons, firms, associations, corporations, business trusts, partnerships, and public bodies.

(20)

State means the State of Maryland, the Governor of the State of Maryland, and any department of or corporation, agency, or instrumentality heretofore or hereafter created, designated, or established by the State of Maryland.

(Chapter 704, Laws of Md., 1986)