(a) “Candidate” means a corporation seeking approval from the Authority to apply for an allocation of the State Ceiling for the purpose of issuing Qualified Scholarship Funding Bonds.

(b) “Eligible Candidate” means a Candidate that (A) is incorporated, authorized to operate, and operating as a nonprofit corporation under California law, (B) is exempt from taxation under Section 501(c)(3) of Title 26 of the United States Code and Section 23701d of the Revenue and Taxation Code, (C) has its principal place of business or one of its significant branch offices in California, (D) as required by its articles of incorporation and bylaws, is established and must be operated exclusively for the purpose of acquiring student loan notes incurred under the Higher Education Act of 1965, as amended and as set forth in Sections 1070 through 1089 of Title 20 of the United States Code, or any successor provisions thereto and must devote any income (after payment of expenses, debt service, and the creation of reserves for the same) to the purchase of additional student loan notes or to pay over any income to the United States, and (E) has served Proper Notice.

(c) “Proper Notice” means a written notice of intent to seek CEFA board approval under these regulations addressed to the Executive Director of CEFA that is received between July 1 and August 31 of any calendar year, unless no qualified scholarship funding corporation eligible to receive a transfer of the State Ceiling exists, then such written notice of intent may be received on any date.

(d) “Qualified Scholarship Funding Bond” means a bond issued by a corporation in compliance with subsection (d) of Section 150 of Title 26 of the United States Code, including any amendments thereto or any successor provision thereof.

(e) “State Ceiling” means the amount specified by subsection (d) of Section 146 of Title 26 of the United States Code and as determined by the California Debt Limit Allocation Committee for each calendar year.

(f) “Student Loan” means a loan made, insured, or guaranteed under the Higher Education Act of 1965, as amended and as set forth in Sections 1070 through 1089 of Title 20 of the United States Code, or any successor provisions thereto.