R 390.1482 Emergency action to stop issuance of commitments.

Rule 82. (1) The authority, through a designated official, may take emergency action to stop the issuance of guaranty commitments to a lender or for a participating school for any of the following reasons: (a) The authority receives information which gives reason to believe that a lender or participating school is in violation of applicable laws, regulations, agreements, or limitations. (b) The designated official determines that immediate action is necessary to prevent the likelihood of substantial losses by the authority, the federal government, students, or parents. (c) The designated official determines that the likelihood of loss outweighs the importance of following the procedures for limitation, suspension, or termination. (2) The designated official shall begin an emergency action by notifying a lender or participating school of the action and the basis for the action. (3) The effective date of the action shall be the date the notice is mailed to a lender or participating school. (4) The designated official shall provide a lender or participating school with an opportunity to demonstrate that the emergency action is unwarranted. (5) An emergency action shall not be for more than 30 days, unless a limitation, suspension, or termination proceeding has begun before that time expires. (6) If a limitation, suspension, or termination proceeding begins before the expiration of the 30-day period, the emergency action may be extended until completion of the proceeding.