Emergency action by the CELP Official may include,
(a) barring any further CELP processing or guarantee of loans to be made to borrowers to cover the cost of attendance at a school which is the subject of an emergency action or to be made by a lender or a school lender which is the subject of emergency action and,
(b) barring delivery, by a school which is subject of emergency action, of any checks representing CELP loans.
Emergency action does not bar disbursement or delivery of loans guaranteed, prior to the initiation of emergency action, by
(1) lender; or by
(2) a school lender subject to emergency action; or
(3) to a borrower attending a school subject to emergency action unless specific notification is made by the CELP Official o the affected party.
The failure of an institution to conform with the requirements of an emergency action may result in a limitation or termination action being taken and the automatic withdrawal or the loan guarantee on loans disbursed by a lender or school lender after the effective date of the emergency action. All applications held by any party (which are application for CELP loans for attendance at a school against which emergency action has been taken or for a loan from a lender against which emergency action has been taken) shall be returned directly by the holder thereof to the borrower with an explanation of the action. The notice of emergency action may include a notice of commencement of a limitation, suspension, or termination proceeding under this subpart.
If emergency action ends by being converted into a limitation or termination, then the regulation applicable to limitation or termination shall apply. In any case to which an emergency action does not apply, loans not yet disbursed or delivered shall be treated in accordance with the terms of a Consent Agreement or shall be disbursed or delivered.
Authority cited: Section 69763(a), Education Code.
United States Code, Title 20, Section 1078(b)(I)(T)&(U)
United States Code, Title 20, Section 1082(h)
United States Code, Title 20, Section 1094(c)
Code of Federal Regulations, Title 34, Section 668.81-668.97.
(Amended by Register 90, No. 34.)