Code Section Group

Financial Code - FIN

DIVISION 12.5. Student Loan Servicing Act [28100 - 28182]

  ( Division 12.5 added by Stats. 2016, Ch. 824, Sec. 2. )

CHAPTER 1. General Provisions [28100 - 28104]

  ( Chapter 1 added by Stats. 2016, Ch. 824, Sec. 2. )

ARTICLE 2. Requirement for License [28102- 28102.]
  ( Article 2 added by Stats. 2016, Ch. 824, Sec. 2. )

28102.
  

(a) No person shall engage in the business of servicing a student loan in this state, directly or indirectly, without first obtaining a license pursuant to this division. A license shall not be transferable or assignable.

(b) This division shall not apply to any of the following:

(1) A bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States that is authorized to transact business in this state.

(2) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this state.

(3) A savings and loan association, savings bank, or credit union organized under the laws of this or any other state that is authorized to transact business in this state.

(4) A public postsecondary educational institution or a private nonprofit postsecondary educational institution servicing a student loan it extended to the borrower.

(5) A nonprofit community service organization that meets all the criteria of Section 12104.

(c) A private postsecondary educational institution not exempted from the requirements of this division pursuant to subdivision (b) shall not be required to comply with this division for the servicing of a student loan it extended to a borrower that a licensee is servicing pursuant to a servicing agreement with the private postsecondary educational institution for that student loan.

(Added by Stats. 2016, Ch. 824, Sec. 2. Effective January 1, 2017. Operative July 1, 2018, pursuant to Section 28182.)

FINFinancial Code - FIN2.