SECTIONS 94916-94918 - California Statutes

EDUCATION CODE

SECTION 94916-94918

94916. An institution extending credit or lending money to an
individual for institutional and noninstitutional charges for an
educational program shall cause any note, instrument, or other
evidence of indebtedness taken in connection with that extension of
credit or loan to be conspicuously marked on its face in at least
12-point type with the following notice:

"NOTICE
YOU MAY ASSERT AGAINST THE HOLDER OF THE PROMISSORY NOTE YOU
SIGNED IN ORDER TO FINANCE THE COST OF THE EDUCATIONAL PROGRAM ALL OF
THE CLAIMS AND DEFENSES THAT YOU COULD ASSERT AGAINST THIS
INSTITUTION, UP TO THE AMOUNT YOU HAVE ALREADY PAID UNDER THE
PROMISSORY NOTE."

94917. A note, instrument, or other evidence of indebtedness
relating to payment for an educational program is not enforceable by
an institution unless, at the time of execution of the note,
instrument, or other evidence of indebtedness, the institution held
an approval to operate.

94918. In making consumer loans to students, an institution shall
also comply with the requirements of the Federal Truth in Lending Act
pursuant to Title 15 of the United States Code.