Indiana § 21-16-4-16 - Holder of guarantee loans; duties
Full text of Indiana Indiana Code § 21-16-4-16 — Holder of guarantee loans; duties, with citation guidance and answers to common questions.
§ 21-16-4-16. Holder of guarantee loans; duties
Sec. 16. A holder of a guaranteed loan shall exercise reasonable care and diligence in the making and collection of loans under this chapter. If the commission finds that reasonable care and diligence are not being exercised by a holder of a guaranteed loan, the commission may:
(1) withdraw its guarantee on an individual borrower basis, allowing the approved lender to continue participation in the program, after reasonable notice to the lender; or
(2) disqualify the approved lender from the guarantee of further loans upon finding, after reasonable notice and hearing, that the lender has substantially failed to exercise reasonable care and diligence in the making and collection of loans under this chapter.
These disqualifications shall continue until the commission is satisfied that the lender will exercise reasonable care and diligence in the future.
[Pre-2007 Higher Education Recodification Citation: 20-12-21.1-6(d).]
As added by P.L.2-2007, SEC.257.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 21-16-4-16
What does Indiana Code § 21-16-4-16 cover?
Section 21-16-4-16 ("Holder of guarantee loans; duties") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 21-16-4-16?
A common citation format is "Indiana Code § 21-16-4-16" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 21-16-4-16 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.