S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5286
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Banks
 
 AN ACT to amend the financial services law, in relation  to  creating  a
   private education debt registry
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The financial services law is amended by adding a new arti-
 cle 9 to read as follows:
                                 ARTICLE 9
                      PRIVATE EDUCATION DEBT REGISTRY
 SECTION 901. DEFINITIONS.
         902. PRIVATE EDUCATION DEBT REGISTRY.
         903. RULES AND REGULATIONS.
         904. VIOLATIONS.
         905. SEVERABILITY.
   § 901. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "FISCAL YEAR" MEANS THE TWELVE-MONTH PERIOD THAT THE PRIVATE EDUCA-
 TION CREDITOR USES FOR FINANCIAL REPORTING AND BUDGETING.
   2. "HIGHER EDUCATION" MEANS HIGHER EDUCATION, INCLUDING CAREER  EDUCA-
 TION,  AS  THOSE  TERMS ARE DEFINED IN SECTION TWO OF THE EDUCATION LAW,
 VIA CORRESPONDENCE, ONLINE, OR IN  PERSON,  REGARDLESS  OF  WHETHER  THE
 HIGHER EDUCATION INSTITUTION IS ACCREDITED WITHIN NEW YORK STATE.
   3.  "HIGHER  EDUCATION  EXPENSE" MEANS ANY EXPENSE ARISING FROM HIGHER
 EDUCATION.
   4. "PRIVATE EDUCATION CREDITOR" MEANS ANY PERSON ENGAGED IN THE  BUSI-
 NESS  OF SECURING, MAKING, OR EXTENDING A PRIVATE EDUCATION DEBT, OR ANY
 HOLDER OF A PRIVATE EDUCATION DEBT, INCLUDING PROVIDERS OF HIGHER EDUCA-
 TION TO WHICH A STUDENT EDUCATION DEBT IS OWED. "PRIVATE EDUCATION CRED-
 ITOR" SHALL NOT INCLUDE THE FOLLOWING PERSONS, ONLY TO THE  EXTENT  THAT
 STATE REGULATION IS PREEMPTED BY FEDERAL LAW:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08128-02-3
 A. 5286                             2
              

 
   (A) ANY FEDERALLY CHARTERED BANK, SAVINGS BANK, SAVINGS AND LOAN ASSO-
 CIATION, OR CREDIT UNION;
   (B)  ANY  BANK,  SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, OR CREDIT
 UNION ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER STATE;
   (C) ANY WHOLLY OWNED SUBSIDIARY OF A FEDERALLY CHARTERED BANK OR CRED-
 IT UNION; AND
   (D) ANY OPERATING SUBSIDIARY WHERE EACH OWNER OF THE OPERATING SUBSID-
 IARY IS WHOLLY OWNED BY THE SAME  FEDERALLY  CHARTERED  BANK  OR  CREDIT
 UNION.
   5.  "PRIVATE  EDUCATION  DEBT" MEANS AN EXTENSION OF CREDIT OR DEBT OR
 OBLIGATION OWED OR INCURRED BY A  CONSUMER,  CONTRACTUAL  OR  OTHERWISE,
 CONTINGENT OR ABSOLUTE, THAT MEETS ALL OF THE FOLLOWING CRITERIA:
   (A)  IS  NOT MADE, INSURED, OR GUARANTEED UNDER TITLE IV OF THE HIGHER
 EDUCATION ACT OF 1965 (20 U.S.C. S.1070 ET SEQ.);
   (B) IS EXTENDED TO A CONSUMER EXPRESSLY, IN WHOLE OR IN PART, FOR,  OR
 ACCRUES  FROM  NONPAYMENT  OF,  HIGHER EDUCATION EXPENSES, REGARDLESS OF
 WHETHER THE CREDIT OR DEBT OR OBLIGATION IS  OWED  TO  THE  PROVIDER  OF
 HIGHER EDUCATION THAT THE STUDENT ATTENDS; AND
   (C)  SHALL  NOT INCLUDE ANY LOAN THAT IS SECURED BY REAL PROPERTY OR A
 DWELLING.
   "PRIVATE EDUCATION DEBT" SHALL INCLUDE EXTENSIONS OF CREDIT OR DEBT OR
 OBLIGATIONS OWED OR INCURRED TO REFINANCE A PRIVATE EDUCATION DEBT.
   6. "PROVIDER OF HIGHER EDUCATION" OR "SCHOOL" MEANS A  PERSON  ENGAGED
 IN  THE  BUSINESS  OF  HIGHER  EDUCATION. FOR THE PURPOSES OF THIS DEFI-
 NITION, A PERSON NEED NOT HAVE OBTAINED AUTHORIZATION FROM  THE  DEPART-
 MENT OF EDUCATION TO OPERATE IN THIS STATE AND NEED NOT BE AN ACCREDITED
 INSTITUTION.
   §  902.  PRIVATE EDUCATION DEBT REGISTRY. 1. BEGINNING ON OR AFTER THE
 ONE HUNDRED EIGHTIETH DAY AFTER THE EFFECTIVE DATE OF THIS  ARTICLE,  NO
 PERSON  SHALL ENGAGE IN BUSINESS AS A PRIVATE EDUCATION CREDITOR IN THIS
 STATE WITHOUT FIRST SATISFYING THE FOLLOWING REQUIREMENTS SET  FORTH  IN
 SUBDIVISIONS TWO AND THREE OF THIS SECTION.
   2.  (A)  A  PRIVATE  EDUCATION  CREDITOR OPERATING IN THIS STATE SHALL
 REGISTER WITH THE SUPERINTENDENT PURSUANT TO ANY REGISTRATION PROCEDURES
 SET FORTH BY THE SUPERINTENDENT BY RULE OR REGULATION, WHICH MAY INCLUDE
 REGISTRATION THROUGH THE  NATIONWIDE  MULTISTATE  LICENSING  SYSTEM  AND
 REGISTRY, AND SHALL PAY A FEE SET BY THE SUPERINTENDENT. THE SUPERINTEN-
 DENT MAY PRESCRIBE AN ALTERNATIVE REGISTRATION PROCESS AND FEE STRUCTURE
 FOR  A  PROVIDER  OF  HIGHER EDUCATION. REGISTRATION SHALL INCLUDE, AT A
 MINIMUM, THE NAME AND ADDRESS OF THE PRIVATE EDUCATION CREDITOR AND  ANY
 OFFICER,  DIRECTOR,  PARTNER,  OR OWNER OF A CONTROLLING INTEREST OF THE
 PRIVATE EDUCATION CREDITOR.  A PRIVATE EDUCATION CREDITOR SHALL ANNUALLY
 RENEW ITS REGISTRATION AND PAY A RENEWAL FEE PURSUANT TO A PROCEDURE AND
 ON OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT.
   (B) THIS SUBDIVISION SHALL NOT APPLY TO  REGULATED  PERSONS,  AS  SUCH
 TERM  IS DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER, ENGAGED IN
 BUSINESS AS A PRIVATE EDUCATION CREDITOR IN THIS STATE,  TO  THE  EXTENT
 SUCH  REGULATION RELATES TO ITS BUSINESS AS A PRIVATE EDUCATION CREDITOR
 AND SUCH PERSONS ARE REQUIRED TO FURNISH DATA OR REPORTS ANNUALLY TO THE
 SUPERINTENDENT.
   3. A PRIVATE EDUCATION CREDITOR OPERATING IN THIS STATE SHALL  ANNUAL-
 LY,  ON  OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT AND NOT
 TO EXCEED SIX MONTHS FOLLOWING  THE  EFFECTIVE  DATE  OF  THIS  ARTICLE,
 PROVIDE  THE SUPERINTENDENT WITH THE FOLLOWING DOCUMENTS AND INFORMATION
 ABOUT SUCH  CREDITOR'S  PRIVATE  EDUCATION  DEBT  PORTFOLIO  RELATED  TO
 CONSUMERS  THAT RESIDE IN THIS STATE PURSUANT TO ANY PROCEDURE SET FORTH
 A. 5286                             3
 
 BY THE SUPERINTENDENT, WHICH MAY INCLUDE REPORTING THROUGH  THE  NATION-
 WIDE  MULTISTATE  LICENSING  SYSTEM  AND REGISTRY, AND WHICH MAY FURTHER
 INCLUDE DIFFERENT PROCEDURES FOR REGULATED  PERSONS,  AS  THAT  TERM  IS
 DEFINED  IN  SECTION ONE HUNDRED FOUR OF THIS CHAPTER, AND NON-REGULATED
 PERSONS:
   (A) FOR PRIVATE EDUCATION  CREDITORS  THAT  SECURE,  MAKE,  OR  EXTEND
 PRIVATE  EDUCATION  DEBTS,  OTHER  THAN  THOSE  PRIVATE  EDUCATION DEBTS
 REPORTED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, RELATING TO SUCH
 DEBTS OWED BY A CONSUMER RESIDING IN THIS STATE AS OF  THE  END  OF  THE
 PRIOR FISCAL YEAR:
   (I)  A LIST OF ALL SCHOOLS FOR WHICH SUCH PRIVATE EDUCATION DEBTS WERE
 USED TO FINANCE HIGHER EDUCATION, INCLUDING, IN THE CASE OF A  REFINANC-
 ING LOAN, THE SCHOOL THAT THE CONSUMER ATTENDED USING THE PRIVATE EDUCA-
 TION DEBT THAT WAS REFINANCED;
   (II)  THE  TOTAL  OUTSTANDING DOLLAR AMOUNT AND NUMBER OF SUCH PRIVATE
 EDUCATION DEBTS AND THE NUMBER OF CONSUMERS WHO OWE SUCH PRIVATE  EDUCA-
 TION DEBTS;
   (III)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF SUCH PRIVATE EDUCATION
 DEBTS ASSOCIATED WITH EACH SCHOOL IDENTIFIED UNDER SUBPARAGRAPH  (I)  OF
 THIS PARAGRAPH;
   (IV)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 SECURED, MADE, OR EXTENDED IN THE PRIOR FISCAL YEAR;
   (V) THE TOTAL DOLLAR AMOUNT AND  NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 SECURED, MADE, OR EXTENDED IN THE PRIOR FISCAL YEAR ASSOCIATED WITH EACH
 SCHOOL IDENTIFIED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH;
   (VI)  THE RANGE OF STARTING INTEREST RATES FOR PRIVATE EDUCATION DEBTS
 SECURED, MADE, OR EXTENDED TO CONSUMERS IN THE  PRIOR  FISCAL  YEAR  AND
 PERCENTAGE OF CONSUMERS WHO RECEIVE THOSE RATES;
   (VII)  THE  OVERALL  DEFAULT  RATE, AS WELL AS THE OVERALL DEFAULT FOR
 SUCH DEBTS ASSOCIATED WITH EACH  SCHOOL  LISTED  UNDER SUBPARAGRAPH  (I)
 OF THIS PARAGRAPH;
   (VIII)  THE  TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 THAT DEFAULTED FOR REASONS OTHER  THAN  NON-PAYMENT IN THE PRIOR  FISCAL
 YEAR, AS APPLICABLE;
   (IX) THE TOTAL DOLLAR AMOUNT AND NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 WITH A COSIGNER, AS APPLICABLE;
   (X)  THE  TOTAL  DOLLAR  AMOUNT  AND NUMBER OF PRIVATE EDUCATION DEBTS
 SECURED, MADE, OR EXTENDED WITH A COSIGNER IN THE PRIOR FISCAL YEAR,  AS
 APPLICABLE;
   (XI)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 SECURED, MADE, OR EXTENDED TO REFINANCE OTHER PRIVATE EDUCATION DEBTS OR
 FEDERAL STUDENT LOANS, RESPECTIVELY, AS APPLICABLE;
   (XII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF  PRIVATE  EDUCATION  DEBTS
 SECURED, MADE, OR EXTENDED TO REFINANCE OTHER PRIVATE EDUCATION DEBTS OR
 FEDERAL STUDENT LOANS, RESPECTIVELY, IN THE PRIOR FISCAL YEAR, AS APPLI-
 CABLE;
   (XIII)  THE  TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 FOR WHICH THE PRIVATE EDUCATION CREDITOR HAS  SUED  TO  COLLECT  IN  THE
 PRIOR FISCAL YEAR, AS APPLICABLE;
   (XIV) ADDITIONAL INFORMATION AS MAY IN THE JUDGMENT OF THE SUPERINTEN-
 DENT  BE NECESSARY AND APPROPRIATE IN ORDER TO ASSESS THE TOTAL SIZE AND
 STATUS OF THE PRIVATE EDUCATION DEBT MARKET AND TO ASSESS BORROWER WELL-
 BEING; AND
   (XV) A COPY OF ANY MODEL PROMISSORY NOTE, AGREEMENT, CONTRACT OR OTHER
 INSTRUMENT USED BY A PRIVATE  EDUCATION  CREDITOR  DURING  THE  PREVIOUS
 FISCAL  YEAR  TO SUBSTANTIATE THAT A NEW PRIVATE EDUCATION DEBT HAS BEEN
 A. 5286                             4
 
 EXTENDED TO THE CONSUMER OR THAT A CONSUMER OWES A DEBT OR OBLIGATION TO
 THE PRIVATE EDUCATION CREDITOR.
   (B)  FOR  PRIVATE  EDUCATION  CREDITORS THAT ACQUIRE OR ASSUME PRIVATE
 EDUCATION DEBTS OWED BY A CONSUMER RESIDING IN THIS STATE,  RELATING  TO
 SUCH DEBTS AS OF THE END OF THE PRIOR FISCAL YEAR:
   (I)  A LIST OF ALL SCHOOLS FOR WHICH SUCH PRIVATE EDUCATION DEBTS WERE
 USED TO FINANCE HIGHER EDUCATION, INCLUDING, IN THE CASE OF A  REFINANC-
 ING LOAN, THE SCHOOL THAT THE CONSUMER ATTENDED USING THE PRIVATE EDUCA-
 TION DEBT THAT WAS REFINANCED;
   (II)  THE  TOTAL  OUTSTANDING DOLLAR AMOUNT AND NUMBER OF SUCH PRIVATE
 EDUCATION DEBTS AND NUMBER OF CONSUMERS WHO OWE SUCH  PRIVATE  EDUCATION
 DEBTS;
   (III)  THE  TOTAL  DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 ASSOCIATED WITH EACH SCHOOL IDENTIFIED UNDER SUBPARAGRAPH  (I)  OF  THIS
 PARAGRAPH;
   (IV)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 ACQUIRED OR ASSUMED IN THE PRIOR FISCAL YEAR;
   (V) THE TOTAL DOLLAR AMOUNT AND  NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 ACQUIRED OR ASSUMED IN THE PRIOR FISCAL YEAR ASSOCIATED WITH EACH SCHOOL
 IDENTIFIED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH;
   (VI) THE OVERALL DEFAULT RATE, AS WELL AS THE OVERALL DEFAULT FOR SUCH
 DEBTS  ASSOCIATED WITH EACH SCHOOL LISTED UNDER SUBPARAGRAPH (I) OF THIS
 PARAGRAPH;
   (VII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF  PRIVATE  EDUCATION  DEBTS
 THAT  DEFAULTED  FOR  REASONS  OTHER THAN NONPAYMENT IN THE PRIOR FISCAL
 YEAR, AS APPLICABLE;
   (VIII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE  EDUCATION  DEBTS
 WITH A COSIGNER, AS APPLICABLE;
   (IX)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 THAT WERE USED TO REFINANCE OTHER PRIVATE EDUCATION DEBTS,  AS  APPLICA-
 BLE;
   (X)  THE TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS FOR
 WHICH THE PRIVATE EDUCATION CREDITOR HAS SUED TO COLLECT  IN  THE  PRIOR
 FISCAL YEAR, AS APPLICABLE; AND
   (XI)  ADDITIONAL INFORMATION AS MAY IN THE JUDGMENT OF THE SUPERINTEN-
 DENT BE NECESSARY AND APPROPRIATE IN ORDER TO ASSESS THE TOTAL SIZE  AND
 STATUS OF THE PRIVATE EDUCATION DEBT MARKET AND TO ASSESS BORROWER WELL-
 BEING.
   (C)  FOR  PRIVATE  EDUCATION  CREDITORS  THAT  ARE PROVIDERS OF HIGHER
 EDUCATION AND WHOSE PRIVATE EDUCATION DEBTS RESULT FROM UNPAID DEBTS  OR
 OBLIGATIONS  THAT  WERE  NOT  EXTENSIONS  OF CREDIT AND THAT RESULT FROM
 HIGHER EDUCATION PROVIDED IN THIS STATE, RELATING TO SUCH  DEBTS  AS  OF
 THE END OF THE PRIOR FISCAL YEAR, REPORTED BY RACE AND GENDER:
   (I)  THE  TOTAL OUTSTANDING DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCA-
 TION DEBTS AND NUMBER OF CONSUMERS WHO OWE THOSE DEBTS;
   (II) THE TOTAL DOLLAR AMOUNT AND NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 ACCRUED  AND NUMBER OF CONSUMERS WHO OWE THOSE DEBTS IN THE PRIOR FISCAL
 YEAR;
   (III) THE TOTAL NUMBER AND BALANCE OF STUDENT ACCOUNTS WITH AN ACADEM-
 IC OR ADMINISTRATIVE HOLD RESULTING FROM A PRIVATE EDUCATION DEBT;
   (IV) THE TOTAL NUMBER AND BALANCE OF STUDENT ACCOUNTS WITH AN ACADEMIC
 OR ADMINISTRATIVE HOLD RESULTING FROM A PRIVATE EDUCATION DEBT FOR WHICH
 A PAYMENT WAS MADE IN THE PRIOR FISCAL YEAR AND AVERAGE PAYMENT MADE;
   (V) THE TOTAL NUMBER OF STUDENT ACCOUNTS FOR WHICH  FEDERAL  FINANCIAL
 AID WAS RETURNED TO THE FEDERAL GOVERNMENT UPON THE STUDENT'S WITHDRAWAL
 A. 5286                             5
 
 FROM  THE PROVIDER OF HIGHER EDUCATION IN THE PRIOR FISCAL YEAR, AND THE
 TOTAL DOLLAR AMOUNT OF ANY PRIVATE EDUCATION DEBT ACCRUED AS A RESULT;
   (VI)  THE  NUMBER  OF  CONSUMERS  WHO OWE A PRIVATE EDUCATION DEBT WHO
 RECEIVED A FEDERAL PELL GRANT AND THE AVERAGE DEBT OWED;
   (VII) THE NUMBER OF CONSUMERS WHO OWE A PRIVATE EDUCATION DEBT WHO ARE
 CONSIDERED IN-STATE AND OUT-OF-STATE STUDENTS, AND THE TOTAL  DEBT  OWED
 BY EACH GROUP;
   (VIII) THE TOTAL DOLLAR AMOUNT, NUMBER OF PRIVATE EDUCATION DEBTS, AND
 NUMBER  OF CONSUMERS FOR WHICH THE PRIVATE EDUCATION CREDITOR HAS IN THE
 PRIOR FISCAL YEAR (A) CHARGED OFF THE DEBT, (B) SENT THE DEBT TO A THIRD
 PARTY  COLLECTION  AGENCY,  (C)  INITIATED  A  COLLECTION  LAWSUIT,  (D)
 REPORTED  THE  DEBT  TO A CONSUMER CREDIT REPORTING AGENCY, AND (E) SOLD
 THE DEBT;
   (IX) THE TOTAL DOLLAR AMOUNT, NUMBER OF PRIVATE EDUCATION  DEBTS,  AND
 NUMBER OF CONSUMERS FOR WHICH THE PRIVATE EDUCATION CREDITOR HAS, IN THE
 PRIOR  FISCAL YEAR, COLLECTED ON A PRIVATE EDUCATION DEBT IN THE FOLLOW-
 ING INSTANCES: (A) PAYMENT ARRANGEMENTS  WHEREIN  THE  PAYMENT  WAS  NOT
 CONSIDERED  PAST  DUE,  SUCH  AS  TUITION  INSTALLMENT  AGREEMENTS;  (B)
 PAYMENTS MADE ON PAST DUE DEBTS DURING THE SAME ACADEMIC TERM OR BILLING
 CYCLE IN WHICH THE DEBT ACCRUED AND BEFORE SUCH DEBTS  WERE  SENT  TO  A
 COLLECTION  AGENCY; (C) PAYMENTS MADE ON PAST DUE DEBTS BEFORE THEY WERE
 SENT TO A COLLECTION AGENCY, EXCLUDING THOSE PAYMENTS  MADE  DURING  THE
 SAME  ACADEMIC  TERM  OR  BILLING CYCLE IN WHICH THE DEBT ACCRUED; (D) A
 THIRD PARTY COLLECTION AGENCY, PRIOR TO INITIATING A LAWSUIT; AND (E)  A
 COLLECTION LAWSUIT, INCLUDING PAYMENTS MADE BY SETTLEMENT OR PURSUANT TO
 A JUDGMENT;
   (X)  ADDITIONAL  INFORMATION AS MAY IN THE JUDGMENT OF THE SUPERINTEN-
 DENT BE NECESSARY AND APPROPRIATE IN ORDER TO ASSESS THE TOTAL SIZE  AND
 STATUS OF THE PRIVATE EDUCATION DEBT MARKET AND TO ASSESS BORROWER WELL-
 BEING; AND
   (XI)  A  COPY  OF  ANY  MODEL WRITTEN INSTRUMENT USED BY A PROVIDER OF
 HIGHER EDUCATION IN THE PRIOR FISCAL  YEAR  TO  SUBSTANTIATE  A  PRIVATE
 EDUCATION  DEBT, INCLUDING BUT NOT LIMITED TO A PROMISSORY NOTE, ENROLL-
 MENT AGREEMENT, OR CONTRACT.
   4. NOT LATER THAN ONE  YEAR  FOLLOWING  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  THE  SUPERINTENDENT SHALL CREATE A PUBLICLY ACCESSIBLE WEBSITE
 THAT INCLUDES AT LEAST THE FOLLOWING INFORMATION ABOUT PRIVATE EDUCATION
 CREDITORS REGISTERED IN THIS STATE:
   (A) THE NAME, ADDRESS, TELEPHONE NUMBER AND WEBSITE  FOR  ALL  PRIVATE
 EDUCATION CREDITORS;
   (B) A SUMMARY OF THE INFORMATION REQUIRED BY SUBDIVISION THREE OF THIS
 SECTION; AND
   (C)  COPIES OF ALL DOCUMENTS PROVIDED UNDER SUBPARAGRAPH (XV) OF PARA-
 GRAPH (A) OF SUBDIVISION THREE OF THIS SECTION AND SUBPARAGRAPH (XI)  OF
 PARAGRAPH (C) OF SUBDIVISION THREE OF THIS SECTION.
   § 903. RULES AND REGULATIONS. IN ADDITION TO SUCH POWERS AS MAY OTHER-
 WISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY AUTHOR-
 IZED  AND  EMPOWERED  TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY IN
 THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH  THE  PURPOSES  OF
 THIS  ARTICLE,  OR  APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS
 ARTICLE.
   § 904. VIOLATIONS. 1. IF THE SUPERINTENDENT FINDS,  AFTER  NOTICE  AND
 HEARING,  THAT  A PRIVATE EDUCATION CREDITOR HAS KNOWINGLY VIOLATED THIS
 ARTICLE BY FAILING TO COMPLY WITH ANY REGISTRATION OR REPORTING REQUIRE-
 MENT OR BY FURNISHING INACCURATE INFORMATION TO THE SUPERINTENDENT,  ANY
 PRIVATE  EDUCATION  DEBT MADE TO OR INCURRED BY A RESIDENT OF THIS STATE
 A. 5286                             6
 
 AND OWED TO SUCH PRIVATE EDUCATION CREDITOR WHILE SUCH CREDITOR WAS  OUT
 OF COMPLIANCE WITH THIS ARTICLE IS VOID AND UNENFORCEABLE AND THE SUPER-
 INTENDENT  MAY  IMPOSE  A  CIVIL  PENALTY  OF NOT MORE THAN TEN THOUSAND
 DOLLARS FOR EACH VIOLATION.
   2.  THE SUPERINTENDENT MAY ORDER THAT ANY PERSON WHO HAS BEEN FOUND TO
 HAVE KNOWINGLY VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF  THE  RULES
 AND  REGULATIONS  ISSUED PURSUANT THERETO, AND HAS THEREBY CAUSED FINAN-
 CIAL HARM TO CONSUMERS, BE BARRED FOR A TERM  NOT  EXCEEDING  TEN  YEARS
 FROM  ACTING  AS  A  PRIVATE EDUCATION CREDITOR, OR A STOCKHOLDER, OR AN
 OFFICER, DIRECTOR, PARTNER OR OTHER OWNER, OR AN EMPLOYEE OF  A  PRIVATE
 EDUCATION CREDITOR.
   §  905. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
 TION THEREOF TO ANY PERSON OR CIRCUMSTANCE  IS  ADJUDGED  INVALID  BY  A
 COURT  OF  COMPETENT  JURISDICTION,  THAT  JUDGMENT  SHALL NOT AFFECT OR
 IMPAIR THE VALIDITY OF THE OTHER  PROVISIONS  OF  THIS  ARTICLE  OR  THE
 APPLICATION THEREOF TO OTHER PERSONS AND CIRCUMSTANCES.
   § 2. This act shall take effect immediately.