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Can you summarize 02-029 MECM Ch. 140?
Bureau of Financial Institutions (formerly Bureau of Banking) (Note: for the Office of Securities, now a separate entity, see 02-032.) > Student Loan Disclosures (Ch. 140 is a Joint Rule with 02-030 Ch. 245)
Short Summary
This rule, jointly promulgated by the Bureau of Financial Institutions and the Bureau of Consumer Credit Protection, establishes disclosure and procedural requirements for student loan products offered by lenders and issuers resulting from an allocation of the state ceiling. The purpose of this rule is to ensure that student loan borrowers receive complete disclosures to make informed choices among available products. The rule applies to student loans made on or after August 1, 2000, funded with tax-exempt bonds utilizing the state ceiling. It defines key terms such as administrator, advertisement, issuer, lender, and state ceiling. The rule requires lenders to disclose the terms and conditions of student loans in accordance with federal regulations or the Federal Truth-in-Lending Regulation. Additional disclosures regarding interest rate discounts or savings must also be provided. Prior to advertising or offering a student loan product, issuers or lenders must provide sample disclosures to the Administrator and project the approximate number or percentage of loan obligors who may benefit from the discounts. The rule also sets advertising requirements and prohibits inaccurate or misleading advertising. Violations of this regulation are subject to penalties under the Maine Consumer Credit Code and may constitute an unfair and deceptive trade practice for financial institutions.
Whom does it apply to?
Lenders and issuers of student loans resulting from an allocation of the state private activity bond ceiling
What does it govern?
Student loan disclosures
What are exemptions?
This rule applies only to student loans made on or after August 1, 2000 that are funded in whole or in part with proceeds of tax-exempt bonds utilizing state ceiling.
What are the Penalties?
Violations of this regulation are subject to the provisions of the Maine Consumer Credit Code, including remedies, penalties, and administration. If the lender is a financial institution, a violation of this rule shall also constitute an unfair and deceptive trade practice, enforceable in accordance with Title 9-B, chapter 24.
Jurisdiction
Maine