Coverage and eligible loan condition
- The condonation program applies to service oriented loans that are declared in default as of December 31, 2007.
- The restructuring applies to the remaining balance of the loan after deducting the condoned amounts.
- The Resolution operates through the Consolidated Loan Program for the restructured balance.
Condonation of penalties and surcharges
- The Resolution provides 100% condonation of penalties and surcharges on eligible service oriented loans declared in default as of December 31, 2007.
- The condonation covers penalties and surcharges associated with the covered default status as of the stated cutoff date.
Waiver of interest
- The Resolution provides 50% waiver of interests on eligible service oriented loans declared in default as of December 31, 2007.
- The waived portion applies to the interest components corresponding to the covered loans as of the cutoff date.
Restructuring of remaining balance
- The Resolution directs the restructuring of the remaining balance of the eligible loan after deducting the condoned amounts.
- The restructured amount is processed through the Consolidated Loan Program.
- The restructuring is part of a consolidated approach that integrates condonation and reformatting of the remaining payable balance.
Required information drive
- The Resolution directs the Senior Vice President (Corporate Services Group) to coordinate with the Vice President (Public Affairs Office).
- The coordination is required to conduct an information drive regarding the condonation and restructuring program.
- The information drive is intended to publicize the program to stakeholders affected by the loan condonation and restructuring.
Reporting requirement after six months
- The Resolution directs the SVP (CSG) to submit a report to the Board.
- The report is due after six (6) months from implementation.
- The report must include the impact of the program and the financial implications on the Funds of the System.