Section R. 390.1436 - Disbursement of loan proceedsRule 36.
(1) The disbursement of loan proceeds by a lender shall be in compliance with the due diligence requirements for the disbursement of a loan set forth by law.(2) Loan proceeds shall be disbursed in a manner permitted by law.(3) Neither a lender nor a school may obtain a borrower's authorization to endorse a disbursement check on behalf of a borrower.(4) The check, after being presented for payment, shall be retained by the lender either in original form or on microform for the period prescribed by the provisions of R 390.1413.(5) When a participating school receives loan proceeds from a lender, the school shall process the proceeds based on requirements established by the secretary in the provisions of 34 C.F.R. S682.604. These provisions are adopted by reference in R 390.1491.(6) A school may only retain loan proceeds as specified by the secretary in the provisions of 34 C.F.R. SS682.604 to 682.607. These provisions are adopted by reference in R 390.1491.(7) With approval from the authority, a lender may disburse an educational loan during the stated loan period, but after a borrower has ceased to be enrolled on at least a half-time basis or after the expiration of the loan period as indicated in the loan application.Mich. Admin. Code R. 390.1436
1979 AC; 1984 AACS; 1990 AACS