Section 3. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:—
“Authority”, the Educational Financing Authority established by section four.
“Authority loans”, loans made by the Authority to other parties from the proceeds of its bonds or from other sources for the purpose of funding education loans.
“Bonds” or “revenue bonds”, revenue bonds or notes of the Authority issued under the provisions of this chapter, including refunding bonds or notes.
“Bond resolution”, the resolution or resolutions of the Authority and the trust agreement or trust agreements, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds.
“Borrower”, a student or any person who has received or agreed to pay an education loan on behalf of a student.
“Commonwealth bonds”, any evidence of general obligation indebtedness issued by the commonwealth.
“Default insurance”, insurance, letters of credit, standby credit agreements, take-out commitments, agreements or other forms of credit insuring against default or guaranteeing timely payment with respect to education loans, Authority loans or bonds.
“Default reserve fund”, a fund established pursuant to a bond resolution for the purpose of securing education loans, Authority loans or bonds.
“Education loan”, a loan to a borrower to finance or refinance a student’s attendance at an institution for higher education made by or on behalf of such an institution or by a financial institution, which loan is made from or in anticipation of an Authority loan or is purchased by the Authority, or such a loan made directly by the Authority.
“Education loan series portfolio”, all education loans made by or on behalf of a specific institution for higher education or participations therein by the Authority and one or more financial institutions which are funded in whole or in part from the proceeds of an Authority loan to such institution out of the proceeds of a related specific bond issue through the Authority.
“Financial index”, a number or percentage compiled or reported periodically by an independent party used to indicate change in cost, price or other magnitude at a specified time, or a rate of interest charged by a particular lender or type of lender from time to time for loans of a particular kind.
“Loan funding deposit”, monies or other property deposited by or on behalf of an institution for higher education with the Authority or its bond trustee or other agent for the purpose of (i) providing security for bonds, (ii) funding a default reserve fund, (iii) acquiring default insurance, or (iv) defraying costs of the Authority, such monies or properties to be in such amounts as deemed necessary by the Authority as a condition for such institution’s participation in the Authority’s programs.
“Institution for higher education”, a nonprofit degree-granting educational institution within the commonwealth, whether public or private, authorized by law to provide a program of education beyond the secondary school level or any like institution located in a state other than the commonwealth if, in the judgment of the Authority, participation of institutions in such state in one or more programs of the Authority will be beneficial to citizens of the commonwealth and if, to the Authority’s satisfaction, such state has agreed to provide reciprocal opportunities to institutions located in the commonwealth.
“Participating institution for higher education”, an institution for higher education which, pursuant to the provisions of this chapter, undertakes or agrees to participate in an education loan program or a savings program of the Authority as provided in this chapter.
“Parent”, any parent, legal guardian or sponsor of a student at an institution for higher education.
“Savings program”, a program approved and administered by the Authority designed to facilitate and encourage savings by or on behalf of students, future students, and parents for the purpose of paying for the costs of attendance at institutions of higher education.
“Tuition agreement”, a contractual arrangement between the Authority and an institution of higher education fixing all or a portion of the direct cost of attendance at such institution in one or more future years at a specified amount subject to adjustment in accordance with one or more financial indices.