KRS 286.12-010: Definitions for subtitle.

As used in this subtitle, unless the context requires otherwise:

(1) "Affiliate" means any person who directly, or indirectly through one (1) or more

intermediaries, controls, is controlled by, or is under common control with another

person;

(2) "Applicant" means a person filing an application or renewal application for a license

under this subtitle;

(3) "Borrower" means a person who:

(a) Has received, or agreed to pay, a student education loan; or

(b) Shares responsibility for repaying a student education loan with a person

described in paragraph (a) of this subsection;

(4) "Borrower with a disability" means a borrower who the servicer knows, or

reasonably should know, is a person who has a documented disability;

(5) "Borrower working in public service" mea ns a borrower who is employed in a

public service job as defined in the Higher Education Act, 20 U.S.C. sec. 1087e(m),

as amended, and administrative regulations promulgated thereunder;

(6) "Control" means the power, directly or indirectly, to direct the management or

policies of a company, whether through ownership of securities, by contract, or

otherwise;

(7) "Director" means a person appointed or elected to sit on a board that manages the

affairs of a corporation or other organization by electing and exercising control over

its officers;

(8) "In this state" means any activity of a person relating to servicing student education

loans that originates:

(a) Inside this state and is directed to persons inside or outside this state; or

(b) Outside this state and is directed to persons inside this state;

(9) "Licensee" means a person licensed as a student education loan servicer under this

subtitle;

(10) "Managing officer" means a natural person responsible for overseeing daily

operations of a licensee;

(11) "Military borrower" means a borrower who is:

(a) A service member, as defined in the Service Member Civil Relief Act, 50

U.S.C. sec. 3911, as amended;

(b) A veteran, as defined in 38 U.S.C. sec. 101, as amended; or

(c) Any other member or veteran of the Un ited States Armed Forces, including

the National Guard and any reserve component of the United States Armed

Forces;

(12) "Student education loan" means any loan to a borrower to finance postsecondary

education or expenses related to postsecondary education;

(13) "Student education loan servicer" or "servicer":

(a) Means a person engaged in the business of servicing student education loans

in this state; and

(b) Includes licensees and persons that are exempt from licensure under this

subtitle; and

(14) "Student education loan servicing" or "servicing" means participating in any of the

following activities related to a student education loan:

(a) Performing both of the following:

1. Receiving:

a. Payments from a borrower; or

b. Notification that a borrower ma de a scheduled periodic payment;

and

2. Applying payments to the borrower's account pursuant to the terms of a

student education loan or the contract governing the servicing of the

loan;

(b) During a period when no payment is required on a student educatio n loan,

performing both of the following:

1. Maintaining account records for the student education loan; and

2. Communicating with the borrower regarding the student education loan

on behalf of the owner of the student education loan promissory note;

(c) Communicating with a borrower regarding the borrower's student education

loan with the goal of facilitating the borrower to:

1. Make payments on the student education; or

2. Apply for a qualified forebearance program; or

(d) Facilitating the activities described in paragraph (a) or (b) of this subsection.