A. The Authority shall accumulate individual loan applications from the several participating institutions and shall submit these applications to the appropriate federally approved guarantor for approval and insurance. The Authority may fix deadlines for the receipt of applications relative to each academic term.

B. The Authority may disburse to each of the participating institutions funds sufficient only to enable payments to those participating students whose loans have been approved and insured. Any funds not so disbursed shall be returned to the Authority by the participating institution. The Authority may also disburse loan funds directly to participating students and through institutional officials.

C. The Authority shall collect interest payments and interest subsidies paid on behalf of the qualified person by the United States and shall also collect all interest and principal payments made by the student under the terms of his obligation to the Student Loan Fund. When any person who has received a loan fails to make payments due in accordance with an executed note, the Authority may declare the full amount of remaining principal and interest due and payable immediately. In the event of default of payment, the Authority shall undertake collection and, in the event of failure to collect after such reasonable efforts as are prescribed by federal regulations, shall file a claim for payment under the terms of the federal insurance.

D. The Authority is authorized to designate the president of each participating institution, or an official of the institution designated by the president, as a representative for the purpose of facilitating and processing loan applications, disbursement and delivery of loan funds to participating students and the receipt of executed notes and payments thereon by participating students. The Authority may promulgate such rules and regulations as shall be deemed necessary and proper to carry out the duties imposed upon the Authority and any institutional representative under the provisions of the Oklahoma Student Loan Act.

Amended by Laws 1987, c. 81, § 5, operative July 1, 1987.