Excel Bill of Sale - DOC

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					LOAN PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT #88


Date: June 17, 2010

To:    FFEL Program Community

From: James W. Runcie, Deputy Chief Operating Officer
      Federal Student Aid

Subject: 2009-2010 MLSA Updated Bill of Sale Submission Instructions

In Electronic Announcement #26, posted on September 9, 2008, the Department provided
instructions for the submission of the Bill of Sale documents that must be executed under
the Master Loan Sale Agreement (“the MLSA”) under the Department’s Loan Purchase
Program (PUT Program).

In Electronic Announcement #66, posted on June 16, 2009, the Department provided the
revised 2009-2010 MLSA for the 2009-2010 PUT Program. Exhibit E provides the Bill
of Sale form, Exhibit F provides the Security Release Certification, and Exhibit G
provides the Form of Notice of Assignment and Designation of Payee. At that time, the
procedures for submission of the Bill of Sale documents under the 2009-2010 PUT
Program did not change from the process previously in place for the 2008-2009 PUT
Program.

The Department required the submission of the Loan Detail Schedule in PDF form with
the Bill of Sale to ensure that the Department would have a record of the transfer of
ownership of the loans, in a form that was stable and not readily malleable. However, the
PDF versions of the pre-sale Loan Detail Schedule (Loan Detail Schedule) created and
sent by Department servicers to the Sellers were often so large that some Sellers reported
difficulty in transmitting them by email back to the Department with the Bill of Sale, as
required under the Department’s PUT Program.

We reviewed the sale procedures and now believe that the sale procedure can be modified
to achieve the same objective without requiring the Seller to submit with the Bill of Sale
a PDF record of the Loan Detail Schedule.

The purpose of this Electronic Announcement is to provide Sellers with updated
instructions for the submission of the Bill of Sale documents for the 2009-2010 PUT
Program only. There are no changes to the process for submitting the Bill of Sale
documents for the Conduit Program.

In place of the PDF version of the Loan Detail Schedule, we have devised a new form,
the Certificate of Loan Detail File, for a Seller to submit with the Bill of Sale. The Sellers
will no longer be required to return a PDF of the Loan Detail Schedule with the Bill of
Sale and instead must execute the Certificate of Loan Detail File and must return this
document as a PDF attachment to the email sent with the Bill of Sale form (Exhibit F)
five business days before the sale date. The Certificate of Loan Detail File will constitute
the Loan Schedule for the sale.

The deadline for Sellers to begin using the revised document submission procedures for
the Bill of Sale, implementing the Certificate of Loan Detail File, will be for any Puts
with Bill of Sale packages submitted on or after June 22, 2010.

Revised Document Submission Procedures for the Bill of Sale

As under current procedures, the ED Servicer will send the Seller a Loan Detail Schedule
for the Put six business days prior to the scheduled Purchase Date. The Loan Detail
Schedule will be provided in both a PDF and Excel format.

To simplify the sale process, the Department will now assign a unique identifier to each
Loan Detail Schedule at the time the file is created. The Department currently assigns a
unique deal number to each proposed sale at the time the Department receives a 45-Day
Notice of Intent to Sell. The unique identifier will include that deal number. The date
the file is created will also be included in the unique identifier. Last, the Department will
total the number of loans included on the Loan Detail Schedule, and will include that
total number in the unique identifier. The Department will label the Loan Detail
Schedule it sends the Seller with the unique identifier, and will provide the Seller with a
Certificate of Loan Detail File that memorializes the Department’s agreement to purchase
the loans included in the pre-sale Loan Detail Schedule bearing the unique identifier
listed on the Certificate.

Six business days before the scheduled Purchase Date, the ED Servicer will provide to
the Seller the Certificate of Loan Detail File, bearing the unique identifier that has been
assigned, sent with the associated Loan Detail Schedule. The Seller continues to be
responsible for reviewing the Loan Detail Schedule to confirm the pre-sale totals. If the
Seller objects to exclusion of some loans it proposed to sell, it must present that objection
to the Department and the ED Servicer. Any exceptions must be resolved for the
scheduled sale to continue.

To complete the Bill of Sale, the Seller will not submit the PDF version of the Loan
Detail Schedule sent to it by the ED Servicer as the Loan Schedule for the Bill of Sale.
Instead, the Seller will now countersign and submit, for each PUT, the Certificate of
Loan Detail File bearing the unique identifier. The Seller recites there that by
submitting the Certificate, the Seller identifies the loans being sold under the
accompanying Bill of Sale as those loans listed on the Loan Detail Schedule to which that
unique identifier has been assigned.

To complete the Certificate of Loan Detail File, the Seller must provide in the places
indicated the information requested in the third paragraph of the form, under the heading
“The following to be completed when submitted with the Bill of Sale.” The Seller must
fill in the bill of sale date and provide the contact information and signature for the Seller
along with the Eligible Lender Trustee contact information and signatures, if applicable.

Five business days before the scheduled Purchase Date, the Seller must submit to the
Department the signed Bill of Sale, the Final Loan Schedule Summary, and the signed
Certificate of Loan Detail File. In addition, if there is a security interest on the loans
being sold, a Security Release Certification that has been signed by both the Seller and
the Secured Lender must be submitted. Finally, if the Seller chooses, the Notice of
Assignment and Designation of Payee (along with a copy of the instrument of assignment
between the Seller and the Creditor) may be submitted.

All these documents must be submitted as PDF attachments to an email sent to the
appropriate ED Servicer mailbox (mailbox associated with the ED Servicer handling the
Put). The subject line of the email must say “BOS, Deal ID, Seller LID, Seller Name,
PUT Date” (Example: BOS, X1234, 123456, ABC Bank, 7/15/2010). This will
expedite processing of the Bill of Sale package once received by the Department and the
ED Servicer.

If you have any questions on the revised document submission procedures for the Bill of
Sale, please email them to margaret.ayanian@ed.gov.

				
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