R 390.1481 Participating school standard of care; effect of failure to properly administer programs; effect of conviction or guilty plea of school owner or chief executive officer for misuse of loan funds.

Rule 81. (1) A participating school shall be subject to the highest standard of care and diligence in administering the educational loan programs and in accounting to the authority for the funds received under those programs. (2) An institution's failure to properly administer the educational loan programs or to account for the funds it receives under those programs shall constitute grounds for the termination of the eligibility of the school to participate in the programs. (3) If the owner of a participating school or the chief executive officer is convicted of, or pleads guilty to, a crime involving the unlawful acquisition, use, or expenditure of loan funds provided through the authority's educational loan programs, the authority shall consider that conviction as a violation of the participating school's duty to administer the loan programs with the highest standards of care and diligence and as an automatic ground for terminating the school's eligibility to participate in the authority's educational loan programs.