Texas Education Code - Section 57.48. Payments By The Comptroller To Defaulting Persons Prohibited
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§ 57.48. PAYMENTS BY THE COMPTROLLER TO DEFAULTING
PERSONS PROHIBITED. (a) Except as provided by Subsection (g), the
corporation shall report to the comptroller the name of any person
who is in default on a loan guaranteed under this chapter. The
report must contain the information and be submitted in the manner
and with the frequency required by rules of the comptroller.
(b) Except as provided by this section, the comptroller, as
a ministerial duty, may not issue a warrant or initiate an
electronic funds transfer to a person who has been reported
properly under Subsection (a).
(c) Except as provided by this section, the comptroller may
not issue a warrant or initiate an electronic funds transfer to the
assignee of a person who has been reported properly under
Subsection (a) if the assignment became effective after the person
defaulted.
(d) If this section prohibits the comptroller from issuing a
warrant or initiating an electronic funds transfer to a person, the
comptroller may issue a warrant or initiate an electronic funds
transfer only as provided by this section to:
(1) the person's estate;
(2) the distributees of the person's estate; or
(3) the person's surviving spouse.
(e) This section does not prohibit the comptroller from
issuing a warrant or initiating an electronic funds transfer to a
person reported properly under Subsection (a) or to the assignee of
the person if the corporation subsequently and properly reports to
the comptroller that:
(1) the person is complying with an installment
payment agreement or similar agreement to eliminate the default,
unless the corporation subsequently and properly reports to the
comptroller that the person no longer is complying with the
agreement;
(2) the default is being eliminated by deductions of
money from the person's compensation under the garnishment
provisions of 20 U.S.C. Section 1095a, unless the corporation
subsequently and properly reports to the comptroller that the
default is no longer being eliminated by the deductions;
(3) the default has been eliminated; or
(4) the report of default was prohibited by Subsection
(g) or was otherwise erroneous.
(f) This section does not prohibit the comptroller from
issuing a warrant or initiating an electronic funds transfer to
pay:
(1) the compensation of a state officer or employee;
or
(2) the remuneration of an individual if the
remuneration is being paid by a private person through a state
agency.
(g) The corporation may not report a person under Subsection
(a) unless the corporation first provides the person with an
opportunity to exercise any due process or other constitutional or
statutory protection that must be accommodated before the
corporation may begin a collection action or procedure. The
comptroller may not investigate or determine whether the
corporation has complied with this prohibition.
(h) This section does not prohibit the comptroller from
issuing a warrant or initiating an electronic funds transfer if:
(1) the warrant or transfer would result in a payment
being made in whole or in part with money paid to the state by the
United States; and
(2) the state agency that administers the money
certifies to the comptroller that federal law:
(A) requires the payment to be made; or
(B) conditions the state's receipt of the money
on the payment being made.
(i) This section does not prohibit the comptroller from
issuing a warrant or initiating an electronic funds transfer to a
person reported properly under Subsection (a) or to the person's
assignee, the person's estate, the distributees of the person's
estate, or the person's surviving spouse if the corporation
consents to issuance of the warrant or initiation of the transfer.
(j) The comptroller may adopt rules and establish
procedures to administer this section.
(k) In this section:
(1) "Compensation" means base salary or wages,
longevity pay, hazardous duty pay, benefit replacement pay, or an
emolument provided in lieu of base salary or wages.
(2) "State agency" means a board, commission, council,
committee, department, office, agency, or other governmental
entity in the executive, legislative, or judicial branch of state
government. The term includes an institution of higher education
as defined by Section 61.003, other than a public junior or
community college.
(3) "State officer or employee" means an officer or
employee of a state agency.
Added by Acts 1979, 66th Leg., p. 1711, ch. 706, § 1, eff. Aug.
27, 1979. Amended by Acts 1991, 72nd Leg., ch. 641, § 1, eff.
Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 449, § 20, eff. Sept. 1,
1993; Acts 1997, 75th Leg., ch. 1035, § 21, 22, eff. June 19,
1997; Acts 1999, 76th Leg., ch. 1467, § 1.01, eff. Jan. 1, 2000;
Acts 2001, 77th Leg., ch. 1158, § 5, eff. June 15, 2001.
Section: 57.43 57.44 57.45 57.46 57.461 57.47 57.471 57.48 57.481 57.482 57.49 57.491 57.50 57.71 57.75
Last modified: August 11, 2007
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