1. (1) A lender or school whose eligibility has been terminated may request reinstatement of its eligibility not less than 18 months after the effective date of termination.

2. (2) A request shall be in writing and shall demonstrate that both of the following provisions have been complied with:

   1. (a) The lender or the school has corrected any violation on which the termination was based.
   2. (b) The school meets all requirements for eligibility.

3. (3) Within 60 days after receiving a request for reinstatement, the executive director shall take 1 of the following actions:

   1. (a) Grant the request.
   2. (b) Deny the request.
   3. (c) Grant the request subject to limitations.
4. (4) If the executive director denies the school's request or allows reinstatement subject to limitation, the executive director shall give the lender or school, upon request, an opportunity to show why its eligibility should be reinstated and all limitations removed.
5. (5) A lender or a school whose eligibility is reinstated subject to limitations imposed by the executive director under the provisions of subrule (3)(c) of this rule shall be eligible to participate, subject to those limitations, pending a decision by the executive director on arequest made pursuant to the provisions of subrule (4) of this rule.

History: 1990 AACS.