(a) An eligible lending institution that desires to receive a linked deposit shall
accept and review applications for loans from applicants certified as eligible students. The lending institution shall apply all usual lending standards to determine the
credit worthiness of each eligible student. In no case shall the applicant request, nor the eligible lending institution approve,
an annual loan amount in excess of the maximum amount indicated on the form certifying
such applicant as an eligible student.
(b) An eligible student shall certify on the loan application that the reduced rate
loan will be used exclusively to attend an approved institution of higher education
in this state. Whoever knowingly makes a false statement concerning such application shall be prohibited
from entering into the West Virginia higher education student assistance loan program. Whoever knowingly uses loan proceeds received pursuant to this article for reasons
other than attendance at an approved institution of higher education shall be prohibited
from benefitting from the linked deposit, which deposit shall be withdrawn upon maturity,
and the loan shall revert to the rate of market interest originally determined.
(c) Upon approval of all or any portion of the loan amount requested for which a linked
deposit is sought, the eligible lending institution shall forward to the board a linked
deposit loan package, in such form and manner as shall be prescribed by the state
board of investments in cooperation with the board. The package shall include such information as may be needed by the board or the
state board of investments including the certification form and the amount of the
loan requested by the eligible student. The eligible lending institution shall certify, for each eligible student, the present
borrowing rate applicable to such student.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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