This new Judge of Appeals in the 1st, Next, Seventh, and you will Ninth Circuits has came across different loan programs and, thus, reach some other results throughout the most other Routine Courts. The fresh new Court away from Appeals in the 1st, 2nd, Seventh, and you may Ninth Circuits stored one a low-earnings organization “funds” the borrowed funds program in the event it pledges the newest note and you can repays the newest loans into lender on new debtor’s standard. These Circuit Courts discovered that without the pledges from the non-profit agencies, individual lenders wouldn’t be involved in the borrowed funds software.
First Marblehead Educ. Res., Inc. (Into the re O’Brien), 419 F.3d 104 (2d Cir. 2005) especially kept you to definitely a low-profit entity are “obviously dedicating several of the money so you’re able to giving support to the system” from the promising all of the notes generated underneath the loan system. Bankruptcy Courts in the nation have reached equivalent findings. Get a hold of age.grams., Inside re also Duits, No. 14-05277-RLM-thirteen, 2020 Bankr. LEXIS 138, during the *5 (Bankr. S.D. Ind. ) (“brand new low-profit’s guarantee assists money a program whilst encourages a lender to increase credit that not if you don’t readily available”); pick as well as Educ.