§ 286-12-010

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

'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 ex ercising 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 a nd 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

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 educatio n; (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.

rms 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 des cribed in paragraph (a) or (b) of this subsection. Effective: July 14, 2022 History: Created 2022 Ky. Acts ch. 88, sec. 2, effective July 14, 2022.