The National Collegiate Student Loan Trusts - A Bit of Background

The family of National Collegiate Student Loan Trusts consist of a Master Student Loan Trust and more than a dozen statutory trusts that are distinguished by a suffix comprising the year of formation and a single digit sequence number, ranging from National Collegiate Student Loan Trust 2004-1 through 2007-4.

The trusts were formed under the Delaware Statutory Trust Act, 12 Del. Code §3801 et seq., by the First Marblehead Corporation, Inc. and the National Collegiate Funding, LLC, with TERI, The Educational Resource Institute, acting as non-profit guarantor, with the effect of making the student loans non-dischargeable in bankruptcy except in hardship cases. TERI was also designated as a trust owner upon formation of the trust, but did not make a capital contribution. 

National Collegiate Funding LLC made in initial capital contribution of $1.00.

Student loans were nominally originated by program lenders and subsequently transferred pursuant to a pre-existing student loan purchase agreement between the program lender and The First Marblehead Corporation to the National Collegiate Funding LLC, which in turn transferred the portfolios of packaged student loans from multiple program lenders, along with the TERI guaranty and the servicing rights, to a newly created trust.

Each trust is not an operating business, but mere a special legal entity created for securitization purposes, i.e. for selling bonds to investors, with the packages of student loans transferred to it – the trust assets -  constituting the collateral and yielding proceeds [or expected to yield proceeds] for distribution to the bond-holders once the student loans would enter the repayment period after the student-borrowers’ graduation.

As reflected in the formation documents, the owners of the trust are National Collegiate Funding LLC, and TERI. “TERI” is an acronym for The Education Resources Institute, Inc., a private non-profit corporation organized under Chapter 180 of the Massachusetts General Laws.

The trust itself formally acts through an Owner Trustee, but the actual administration of the bonds, distribution of proceeds, and servicing of the loans is performed by an Indenture Trustee and by Servicers.

The First Marblehead Corporation was the moving force in the origination, transfer, and securitization of the loans, and would receive a multi-million dollar up-front fee for its services as Structuring Advisor upon the closing of the transaction, as well as a share of subsequent income under its Structuring Advisory Agreement.

The parties to the Trust Agreement, which is the governing document for each Trust, appointed a related entity, The First Marblehead Data Services, Inc., as Administrator, with power of attorney to act for the Trust.

The individual trusts are very similar in structure and are based on the same business model. Definitive descriptive information however must be trust-specific because they are not completely alike. The next section provides such information for the last Trust in the series, which was created shortly before the 2008 financial crisis. 

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-4, THE LAST IN THE SEQUENCE

THE FORMATION OF THE TRUST

THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-4 was formed September 20, 2007 by execution of a governing instrument titled “Trust Agreement” by THE NATIONAL COLLEGIATE FUNDING LLC, and THE EDUCATION RESOURCES INSTITUTE, INC. (TERI), as OWNERS, and The WILMINGTON TRUST COMPANY as OWNER TRUSTEE. See NCSLT 2007-4 TRUST AGREEMENT. See: https://www.sec.gov/Archives/edgar/data/1223029/000088237707002305/d719487.htm

THE NATIONAL COLLEGIATE FUNDING LLC made an initial capital contribution of $1.00, TERI made none. The percentage interests and sharing ratios between the owners were set at 79.3003% for the LLC and 20.6997% for TERI.

The Trust Agreement was based on an Interim Trust Agreement, dated as of September 11, 2007 by and between the Depositor and the Owner Trustee. The First Marblehead Corporation was not a signatory, but played a key role behind the scenes. 

THE TRUST-RELATED AGREEMENT

The formation of the Trust was a central component of the private student loan securitization scheme, but implicated many other entities and related contracts, many executed at the same time and collectively labeled the “Trust Related Agreements.”

The Trust Agreement defines them as “any instruments or agreements signed by the Owner Trustee on behalf of the Trust, including without limitation, the Indenture, the Loan Purchase Agreements, the Administration Agreement, the Deposit and Sale Agreement, the Deposit and Security Agreement, the Servicer Consent Letters, the Structuring Advisory Agreement, the Assignments of Servicing Agreements, the Back-up Agreement, the Custodial Agreements, the Notes, the Indemnification Agreements, the Issuer Order, the Issuer Orders to Authenticate, the Auction Agreement, the Broker-Dealer Agreements and the Note Insurer Agreements.“

Many of these documents are on file with the Securities and Exchange Commission and can be view on its website. See INDEX page, with hotlinks to individual documents. 

THE CAST OF PLAYERS 

OWNER TRUSTEE: Wilmington Trust Company is a Delaware banking corporation with its principal place of business in the State of Delaware. It acts solely in the role of Trustee, not in its individual capacity. Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware, 19890, Attention: Corporate Trust Administration.

ADMINISTRATOR: Pursuant to the Trust Agreement and the related Administration Agreement dated September 20, 2007, the First Marblehead Data Services, Inc., a Massachusetts corporation, was designated as Administrator for the Trust, with power of attorney in fact to act on behalf of the Owners. The First Marblehead Data Services, Inc., The Prudential Tower, 800 Boylston Street - 34th Floor, Boston, MA 02199-8157. This corporation is related to and shares an address with The First Marblehead Corporation.

INDENTURE TRUSTEE:  U.S. Bank National Association was designated as Indenture Trustee.

STRUCTURING ADVISOR: The First Marblehead Corporation played a key role in the entire process of student loan origination, transfer, and collaterialization, and received a fee of $88,424,309 upon consummation of the transaction, pursuant to the contemporaneously executed Structuring AdvisoryAgreement between the Structuring Advisor and the Trust. It is not a signatory to the Trust Agreement itself, however, although it is mentioned in it.  

STUDENT LOAN GUARANTOR: The Education Resources Institute, Inc. (TERI)., a private non-profit corporation organized under Chapter 180 of the Massachusetts General Laws, guaranteed each student loan transferred to the Trust pursuant to its Guaranty Agreement with the Program Lender and The Marblehead Corporation. Upon formation of the Trust, TERI became a co-owner of the Trust, but also continued in the role of guaranty agency for each student loan. TERI later became insolvent because of excessive defaults that triggered its guaranty obligations, and filed for bankruptcy. See In re The Education Resources Institute, Inc., 442 B.R. 20 (Bankr. D. Mass. 2010).  In re The Education Resources Institute, Inc., 442 B.R. 20 (Bankr. D. Mass. 2010) (court opinion via Google Scholar). 

LOAN SERVICER: The Pennsylvania Higher Education Assistance Agency (which does business as AES) was designated as the servicer of the acquired student loans pursuant to pre-existing servicing Agreements between the Pennsylvania Higher Education Assistance Agency (PHEAA) and The First Marblehead Corporation.

PURPOSE OF THE TRUST AND BUSINESS ACTIVITIES

The Trust Agreement defines the purpose of the Trust as follows:

 (i)  To acquire a pool of Student Loans, to execute the Indenture and to issue the Notes;

 (ii)  To enter into the Trust Related Agreements and to provide for the administration of the Trust and the servicing of the Student Loans;

 (iii)  To engage in those activities and to enter into such agreements that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith; and

 (iv)  To engage in such other activities as may be required in connection with conservation of the Trust Property and Distributions to Owners. Until the Indenture is discharged, the Trust shall not engage in any business or activities other than in connection with, or relating to, the foregoing and other than as required or authorized by the terms of this Agreement and the Indenture, except as are incidental to and necessary to accomplish such activities, unless the Interested Noteholders consent to the Trust engaging in other activities.

WHICH STUDENT LOANS ENDED UP AS TRUST PROPERTY OF NCSLT 2007-4?

Schedule B of the Trust Agreement lists the loan originators (private student loan program lenders) as follows:

SCHEDULE B: ORIGINATING BANKS 

Bank of America, N.A., Charter One Bank, N.A., Citizens Bank of Rhode Island, Comerica Bank, HSBC Bank USA, National Association, The Huntington National Bank, InsurBanc, JPMorgan Chase Bank, N.A., KeyBank National Association, Manufacturers and Traders Trust Company, National City Bank, PNC Bank, N.A., Sovereign Bank, SunTrust Bank, TCF National Bank, Union Federal Savings Bank.

The student loans originated by these lenders were transferred through a Deposit and Sale Agreement, dated September 20, 2007, between the Depositor (National Collegiate Funding LLC) and the Trust, but the transfer was not directly from the original creditors to the Trust.

The loans were first acquired from the original lenders through “Loan Purchase Agreements” between each of the Loan Originators (listed above) and The First Marblehead Corporation, and are enumerated in Schedule C.

Because the Loan Purchase agreements in many instances pre-dated the origination of the loans to be transferred to the Trust for securitization by many years, a separate supplemental contract document was executed by The First Marblehead Corporation, the National Collegiate Funding, LLC, and the respective program lender to specifically encompass the later-originated loans to be transferred. These contract documents are labeled “Pool Supplements” and are listed on a Schedule attached to the Deposit and Sale Agreement, but are not attached to the Trust Agreement as an additional schedule.

The respective roles of program lenders, The First Marblehead Corporation, and The National Collegiate Funding LLC, and the absence of relevant documentation evidencing the transfer of specific loans, has recently led to complications in similarly structured trust’s efforts to prove ownership for purposes of obtaining court judgments against debtors who defaulted on their student loans, and in successfully defending judgments on appeal, or reversing take-nothing judgments in a defendant’s favor. See, e.g. Ramirez v. NationalCollegiate Student Trust 2006-2 (Texas). National Collegiate Student Loan Trust2005-1 v Owusu (Ohio).

Also see prior blawg post on National Collegiate Student Loan Trust Suits in Texas Courts.

SCHEDULE C: NOTE PURCHASE AGREEMENTS 

Bank of America, N.A., dated April 30, 2001, for loans that were originated under Bank of America’s Private Loan Program, TERI School Channel Loan Program and ISLP Loan Program.

Bank of America, N.A., dated June 30, 2006, for loans that were originated under Bank of America’s Private Loan Program, TERI School Channel Loan Program and ISLP Loan Program.      

Bank of America, N.A., dated April 1, 2006, for loans that were originated under Bank of America’s Direct to Consumer Loan Program.

Charter One Bank, N.A., dated as of December 29, 2003 for loans that were originated under Charter One’s AAA Southern New England Bank Loan Program.        

Charter One Bank, N.A., dated October 31, 2003, for loans that were originated under Charter One’s AES EducationGAIN Loan Program.  

Charter One Bank, N.A., dated June 30, 2003, for loans that were originated under Charter One’s Citibank Education Assistance Loan Program.

               

Charter One Bank, N.A., dated July 1, 2002, for loans that were originated under Charter One’s College Loan Corporation Loan Program.

               

Charter One Bank, N.A., dated November 17, 2003, for loans that were originated under Charter One’s National Education Loan Program.

               

Charter One Bank, N.A., dated May 15, 2002, for loans that were originated under Charter One’s NextStudent Alternative Loan Program.

               

Charter One Bank, N.A., dated March 25, 2004, for loans that were originated under Charter One’s Astrive and AstriveAlliance Education (f/k/a START) Loan Programs.

               

Charter One Bank, N.A., dated February 15, 2005, for loans that were originated under Charter One’s Referral Loan Program (including loans in the Charter One Bank Alternative Loan Program, E-Loan Private Loan Program, UPromise Alternative Loan Program, Collegiate Solutions Alternative Loan Program, College Board Alternative Loan Program, Axiom Alternative Loan Program, American Student Loan Services Private Loan Program, nBuy Private Loan Program, and ThinkFinancial Alternative Loan Program).

               

Citizens Bank of Rhode Island, dated April 30, 2004, for loans that were originated under Citizens Bank of Rhode Island’s Alternative Loan Program, ISLP Loan Program, Compass Bank Loan Program, FinanSure Alternative Loan Program, Navy Federal Alternative Loan Program, and Xanthus Alternative Loan Program.

               

Citizens Bank of Rhode Island, dated October 1, 2002, for loans that were originated under Citizens Bank of Rhode Island’s Penn State Undergraduate Loan Program.

Comerica Bank, dated June 30, 2006, for loans that were originated under Comerica Bank’s Private Loan Program.

HSBC Bank USA, National Association, dated April 17, 2002, as amended on June 2, 2003 and August 1, 2003, for loans that were originated under the HSBC Loan Program.

               

The Huntington National Bank, dated May 20, 2003, for loans that were originated under the Huntington Education Loan Program.

               

InsurBanc, dated July 1, 2006, for loans that were originated under the InsurBanc Loan Program.

               

JPMorgan Chase Bank, N.A,, (successor to Bank One, N.A.), dated May 1, 2002, for loans that were originated under Bank One’s CORPORATE ADVANTAGE Loan Program, EDUCATION ONE Loan Program, and Campus One Loan Program.

               

KeyBank National Association, dated May 12, 2006, for loans that were originated under KeyBank’s Private Education Loan Program.

               

Manufacturers and Traders Trust Company, dated April 29, 2004, for loans that were originated under the M&T Alternative Loan Program.

National City Bank, dated November 13, 2002, for loans that were originated under the National City Loan Program.

               

National City Bank, dated July 21, 2006, for loans that were originated under the National City Referral Loan Program, including the Astute Private Loan Program and Student Lending Works Private Loan Program.

               

PNC Bank, N.A., dated April 22, 2004, for loans that were originated under PNC Bank’s Alternative Loan Program, Brazos Alternative Loan Program, Edvisors Alternative Loan Program, Fondo Futuro Loan Program, GE Money Bank Student Loan Program, Old National Bank Private Loan Program, and Regions Bank Private Loan Program.

               

Sovereign Bank, dated April 30, 2004, for loans that were originated under Sovereign Bank’s Alternative Student Loan Program.

               

SunTrust Bank, dated March 1, 2002, for loans that were originated under the SunTrust Loan Program.

               

TCF National Bank, dated July 22, 2005, for loans that were originated under the TCF National Bank Alternative Loan Program.

               

Union Federal Savings Bank, dated March 26, 2007, for loans that were originated under the UFSB Astrive Loan Program.

SCHEDULE D: GUARANTY AGREEMENTS 

All transferred loans were guaranteed by The Education Resources Institute, Inc. (TERI), but through separate, lender-specific guaranty agreements, which are listed in Schedule D, in alphabetical order of program lenders.   

Bank of America, N.A., dated April 30, 2001, for loans that were originated under Bank of America’s Private Loan Program, TERI (School Channel) Loan Program and TERI ISLP Loan Program.          

Bank of America, N.A., dated June 30, 2006, for loans that were originated under Bank of America’s Private Loan Program, TERI (School Channel) Loan Program and TERI ISLP Loan Program.

Bank of America, N.A., dated June 30, 2003, for loans that were originated under Bank of America’s Direct to Consumer Loan Program.

Charter One Bank, N.A., dated as of December 29, 2003 for loans that were originated under Charter One’s AAA Southern New England Bank Loan Program.

Charter One Bank, N.A., dated October 31, 2003, for loans that were originated under Charter One’s AES EducationGAIN Loan Program.

Charter One Bank, N.A., dated June 30, 2003, for loans that were originated under Charter One’s Citibank Education Assistance Loan Program.

Charter One Bank, N.A., dated July 1, 2002, for loans that were originated under Charter One’s College Loan Corporation Loan Program.

Charter One Bank, N.A., dated November 17, 2003, for loans that were originated under Charter One’s National Education Loan Program.

Charter One Bank, N.A., dated May 15, 2002, for loans that were originated under Charter One’s NextStudent Alternative Loan Program.

Charter One Bank, N.A., dated March 25, 2004, for loans that were originated under Charter One’s Astrive and AstriveAlliance Education (f/k/a START) Loan Program.

Charter One Bank, N.A., dated February 15, 2005, for loans that were originated under Charter One’s Referral Loan Program (including loans in the Charter One Bank Alternative Loan Program, E-Loan Private Loan Program, UPromise Alternative Loan Program, Collegiate Solutions Alternative Loan Program, College Board Alternative Loan Program, Axiom Alternative Loan Program, American Student Loan Services Private Loan Program, nBuy Private Loan Program, and ThinkFinancial Alternative Loan Program).

Citizens Bank of Rhode Island, dated April 30, 2004, for loans that were originated under Citizens Bank of Rhode Island’s Alternative Loan Program, ISLP Loan Program, Compass Bank Alternative Loan Program, FinanSure Alternative Loan Program, Navy Federal Alternative Loan Program, and Xanthus Alternative Loan Program.

Citizens Bank of Rhode Island, dated October 1, 2002, for loans that were originated under Citizens Bank of Rhode Island’s Penn State Undergraduate Loan Program.

Comerica Bank, dated June 30, 2006, for loans that were originated under Comerica Bank’s Private Loan Program.

HSBC Bank USA, National Association, dated April 17, 2002, for loans that were originated under the HSBC Loan Program.

The Huntington National Bank, dated May 20, 2003, for loans that were originated under the Huntington Education Loan Program.

InsurBanc, dated July 1, 2006, for loans that were originated under the InsurBanc Loan Program.

JPMorgan Chase Bank, N.A., (successor to Bank One, N.A.,) dated May 13, 2002, for loans that were originated under Bank One’s CORPORATE ADVANTAGE Loan Program, EDUCATION ONE Loan Program, and Campus One Loan Program.

KeyBank National Association, dated May 12, 2006, for loans that were originated under KeyBank’s Private Education Loan Program.

Manufacturers and Traders Trust Company, dated April 29, 2004, for loans that were originated under the M&T Alternative Loan Program.

National City Bank, dated July 26, 2002, for loans that were originated under the National City Loan Program.

National City Bank, dated July 21, 2006, for loans that were originated under the National City Referral Loan Program, including the Astute Private Loan Program and the Student Lending Works Private Loan Program.

PNC Bank, N.A., dated April 22, 2004, for loans that were originated under PNC Bank’s Alternative Loan Program, Brazos Alternative Loan Program, Edvisors Alternative Loan Program, Fondo Futuro Loan Program, GE Money Bank Student Loan Program, Old National Bank Private Loan Program, and Regions Bank Private Loan Program

Sovereign Bank, dated April 30, 2004, for loans that were originated under Sovereign Bank’s Alternative Student Loan Program.

SunTrust Bank, dated March 1, 2002, for loans that were originated under the SunTrust Loan Program.

TCF National Bank, dated July 22, 2005, for loans that were originated under the TCF National Bank Alternative Loan Program.

Union Federal Savings Bank, dated March 26, 2007, for loans that were originated under the USFB Astrive Loan Program.

POOL SUPPLEMENTS FOR NCSLT 2007-4 

24	POOL SUPPLEMENT (JPMORGAN CHASE BANK, N.A.)	d720157.htm	EX-99.28	32288
25	POOL SUPPLEMENT (BANK OF AMERICA, N.A.)	d719723.htm	EX-99.29	58223
26	POOL SUPPLEMENT (BANK OF AMERICA, N.A.)	d719715.htm	EX-99.30	69025
27	POOL SUPPLEMENT (CHARTER ONE BANK, N.A.)	d720160.htm	EX-99.31	45102
28	POOL SUPPLEMENT (UNION FEDERAL SAVINGS BANK)	d720152.htm	EX-99.32	27140

LIST OF NATIONAL COLLEGIATE STUDENT LOAN TRUSTS 

NATIONAL COLLEGIATE MASTER STUDENT LOAN TRUST

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2003-1

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004-1

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2004-2

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2005-1

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2005-2

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2005-3

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2006-1

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2006-2

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2006-3

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2006-4

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-1

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-2

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-3

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-4 

EXAMPLE OF COLLECTION SUIT IN WHICH 

COURT FOUND PROOF OF LOAN TRANSFER TO NATIONAL COLLEGIATE STUDENT LOAN TRUST INSUFFICIENT AND DISMISSED CASE FOR LACK OF STANDING 

2016 NY Slip Op 51890(U)

NATIONAL COLLEGIATE STUDENT LOAN TRUST 2007-4, A DELAWARE STATUTORY TRUST(S), Plaintiff,
v.
SAMANTHA WATSON, SOPHIA DETRY, Defendants.

Cv-009265-14/bx.

Civil Court of the City of New York, Bronx County.

Decided January 7, 2016.

Forster and Garbus, Counsel for Plaintiff.

Samantha Watson and Sophia Detry appeared pro se, Defendants.

EDDIE J. McSHAN, J.

After trial, the decision in the above action is as follows:

Plaintiff commenced this action seeking a judgment in the amount of $7,336.00 against the defendants for an alleged breach of a promissory note and on an account stated. Plaintiff called Mr. Jonathan Boyd to testify on its behalf. Mr. Boyd testified that he is employed by Transworld System, Inc. (TSI) as a Legal Case Manager. He stated that TSI is the designated custodian of records for the Plaintiff. He stated that his job responsibilities include reviewing, maintaining, and analyzing the business records. He noted that the Plaintiff's business records are student loan records. He suggested that he is familiar with the Plaintiff's records and is able to identify them.

Plaintiff moved into evidence a document entitled "Loan Request/Credit Agreement-Signature Page" (Agreement) dated April 30, 2007. Mr. Boyd testified that the Agreement was received by fax and that it went to underwriting. He indicated that the loan was approved and the funds were disbursed. Plaintiff moved into evidence the "Note Disclosure Statement" (Disclosure) dated May 14, 2007. He stated that the Disclosure was created once the loan was approved. He insisted that the Disclosure was sent to the defendants. He noted that Charter One Bank, N.A. was the original lender. He also noted that AES was the original servicer of the defendant's loan. Mr. Boyd asserted that the Plaintiff received the loan by assignment.

Plaintiff moved into evidence the "Pool Supplement RBS Citizens, N.A. (Successor to Charter One Bank, N.A.) (RBS Citizens Assignment) dated September 20, 2007. Mr. Boyd stated that the assignment was between the original lender and National Collegiate Funding, LLC. He also stated that First Marblehead Corporation is a servicing company and is the servicing company for National Collegiate Funding, LLC. He suggested that the schedule at the end of the RBS Citizens Assignment identifies the defendants' loan.

Mr. Boyd further testified that the defendants' loan was subsequently assigned by National Collegiate Funding, LLC to the Plaintiff also on September 20, 2007. Plaintiff moved into evidence the Deposit and Sale Agreement between The National Collegiate Funding LLC and Plaintiff. Mr. Boyd suggested that the defendants' loan was transferred to the Plaintiff prior to the time any payments were due from the defendants.

Plaintiff moved into evidence the Loan Financial Activity (Activity) for the subject loan. Mr. Boyd stated that the repayment records are kept electronically. He suggested that this document shows the financial activity from the loan from the date of disbursement through the charge-off. He stated that the transaction code on page three of the Activity indicates that $5760.73 was the transfer The National Collegiate Funding LLC to the Plaintiff.

Mr. Boyd stated that the defendants made a payment on February 11, 2011. He acknowledged that he did not know how the payment was made. He suggested the defendants did not make any other payments and were declared in default. He indicated that the loan was charged-off in the amount of $6,764.68 on August 1, 2011. He indicated that the sum requested in the complaint includes interest that continued to accrue. Mr. Boyd asserted that the Plaintiff has not received any payments since the charge-off and a balance remains due and owing. Plaintiff did not call any other witnesses.

Defendant, Samantha Watson, testified that she does not believe that she owes any money for this loan. She asserted that the Plaintiff was unable to show how the alleged payment was made on the loan. She stated that the Plaintiff is relying on the payment to establish that she owes the money. Ms. Watson insisted that the documents submitted into evidence do no establish that AES was the original servicer of the loan. She also insisted that the Deposit and Sale Agreement does not show that the Plaintiff owns the loan. She stated that she never received any documents that informed her that she was in default on the loan. She also stated that she did not receive any notice that the original lender was changed. She insisted that she never received any notices or statements regarding this loan. She also insisted that her cosigner never received any notices.

Ms. Watson noted that the Disclosure indicates that the loan was made out only to her. She stated that Mr. Boyd testified earlier that the loan is made out to both parties. Ms. Watson insists that the Plaintiff does not own this loan and that it cannot sue her because she never did business with Trust.She noted that the Plaintiff claimed that it is the original owner of the loan which is not supported by the Agreement. She insists that Charter One Bank is the original lender.

Defendant, Sophia Detry, testified that they do not owe the Plaintiff the money. She stated that she does not recall her daughter ever making payments on the loan. She asserted that if her daughter did make any payments on the loan they were not to the Plaintiff. Ms. Detry asserted that the Plaintiff does not have the right to sue them. She stated that the Plaintiff has not provided any proof. She noted that she never received the documents and she is seeing them for the first time. She insisted that the documents were never sent to her address.

Defendants challenge the Plaintiff's standing and capacity to sue in this matter. It is unquestioned on this record that Charter One Bank is the original lender of the loan. Although the defendants challenged Mr. Boyd's authority to testify on behalf of the Plaintiff, the Court admitted into evidence the electronic records relied upon by the Plaintiff pursuant to CPLR § 4518. It is well settled that the relationship between two businesses and the nature of the records in question, including the circumstances of their preparation, may give the recipient sufficient familiarity with the other party's records to justify admissibility through the foundation testimony of the recipient (People v Cratsley, 86 NY2d 81 [1995]). Moreover, where a company routinely relies upon the records of another business in the conduct of its own business, that company will be permitted to admit into evidence through one of its employees the records of the other company (Merrill Lynch Business Financial Services, Inc. v Trataros Constructin, Inc., 30 AD3d 336 [1st Dept. 2006]; People v DiSalvo, 284 AD2d 547 [2nd Dept. 2001]). This Court determined that Mr. Boyd has the necessary familiarity and knowledge of the Plaintiff's records based upon his testimony and the relationship between his employer as the designated custodian of records and the Plaintiff (see for example Merrill Lynch Business Financial Services, Inc., 30 AD3d 336; Portfolio Recovery Associates, LLC, v Lall, 127 AD3d 576 [1st Dept 2015], affg 41 Misc 3d 128[A][App Term 1st Dept 2013]).

Generally, an assignee of a consumer credit agreement must establish its standing at the time the action was commenced (See Portfolio Recovery Assoc. v Lall, 41 Misc 3d 128[A]). The Court finds that Plaintiff failed to establish the chain of title from the original lender to Plaintiff. Mr. Boyd credibly established that the RBS Citizens Assignment dated September 20, 2007, shows that the defendants' loan was transferred to The National Collegiate Funding LLC. The Court finds the Deposit and Sale Agreement also dated September 20, 2007, insufficient to establish that The National Collegiate Funding LLC assigned the defendants' loan to the Plaintiff.

The Agreement indicates that the defendants applied for a loan in the amount of $5000. The Loan Program Information indicates that the loan defendants applied for was part of the "Charter One Continuing Education Loan." This Court's review of the Deposit and Sale Agreement finds that assignment does not specifically identify the Charter One Continuing Education Loan as part of Schedule A relied upon by the Plaintiff. Section 3.02 of the Deposit and Sale Agreement provides that "[t]he Seller hereby assigns to the Purchaser and the Purchaser hereby accepts all of the Seller's rights and interests under each of the Pool Supplements listed on Schedule A attached hereto and the related Student Loan Purchase Agreements listed on Schedule B attached hereto." Schedule A of the Deposit and Sale Agreement list the "Pool Supplements" that were transferred from RBS Citizens, N.A., successor by merger to Charter One Bank, N.A., as well as other original lenders. There are several loan programs sponsored by RBS Citizens, N.A., successor by merger to Charter One Bank, N.A. included in Schedule A of the Deposit and Sale Agreement. The Court finds nothing in Schedule A of the Deposit and Sale Agreement that references the defendant's Charter One Continuing Education Loan that originated from Charter One Bank, N.A. Mr. Boyd's unsupported testimony that the defendants' loan was part of the assignment from The National Collegiate Funding LLC assigned to the Plaintiff is insufficient based upon the pool supplements listed in Schedule A. Mr. Boyd did not provide any testimony that identified defendants' Charter One Continuing Education Loan as part of Schedule A of the Deposit and Sale Agreement.

Based upon the foregoing, the Court is unable to determine whether the defendants' loan disbursed on or about May 14, 2007 in accordance with the Disclosure was included in the assignment between the National Collegiate Funding LLC and the Plaintiff. Accordingly, the Court finds that Plaintiff failed to establish its standing in this proceeding.

In light of the foregoing, it is hereby:

ORDERED AND ADJUDGED that the Clerk shall dismiss this action in its entirety based upon the Plaintiff's failure to establish its standing to bring this action.

This shall constitute the decision and order of the Court.