261F.8 - PENALTIES.
261F.8 PENALTIES.
1. If after providing notice and an opportunity for a hearing the
attorney general determines that a covered institution or lending
institution has violated a provision of this chapter, the covered
institution or lending institution may be liable for a civil penalty
of up to five thousand dollars per violation. In taking action
against a covered institution or lending institution, consideration
shall be given to the nature and severity of a violation of this
chapter.
2. If after providing notice and an opportunity for a hearing the
attorney general determines that a covered institution employee has
violated a provision of this chapter, the covered institution
employee may be liable for a civil penalty of up to two thousand five
hundred dollars per violation. In taking action against a covered
institution employee, consideration shall be given to the nature and
severity of a violation of this chapter.
3. If after providing notice and an opportunity for a hearing the
attorney general determines that a lending institution has violated a
provision of this chapter, such lending institution shall not be
placed or remain on any covered institution's preferred lender list
unless notice of such violation is provided to all potential
borrowers of the covered institution. However, consideration shall
be given to the nature and severity of a violation of this chapter in
determining whether and for how long to ban a lender from a preferred
lender list.
4. Nothing in this section shall prohibit the attorney general
from reaching a settlement agreement with a covered institution,
covered institution employee, or lending institution in order to
effectuate the purposes of this section. Provided, however, if such
settlement agreement is reached with a covered institution or lending
institution, the attorney general shall provide notice of such action
to the borrowers in a form and manner prescribed by the attorney
general.
5. The attorney general shall deposit the funds generated
pursuant to this section into the student lending education fund,
created in section 261F.10.
6. Each individual incident of a violation of this chapter shall
be considered a separate violation for the purpose of imposing civil
penalties. Section History: Recent Form
2008 Acts, ch 1132, §10
Referred to in § 261F.10