fenwaysouth,
Transfer 101 (the new title of the Transfer Guide) is an excellent publication, but it isn't the actual rules, and doesn't cover all situations. The Division Manuals are the rules, and that would be a better place to search when looking for rules to cover unusual situations.
Section 14 deals with eligibility, and it starts with definitions. 14.02.05 describes the meaning of the term "exception", and 14.02.15 covers "waiver".
14.02.5 Exception. An exception is the granting of relief from the application of a specific regulation (e.g., the residence requirement for a transfer student to become eligible for competition). The action granting the exception may be taken solely by the certifying institution, based on evidence that the conditions on which the exception is authorized have been met.14.02.15 Waiver. A waiver is an action exempting an individual or institution from the application of a specific regulation. A waiver requires formal approval (e.g., an NCAA committee or a conference, as specified in the legislation) based on evidence of compliance with the specified conditions or criteria under which the waiver is authorized or extenuating circumstances. Exceptions are written into the rules. For example, it's common knowedge that a D1 player has a 5 year clock in which to complete eligibility. If a student becomes pregnant, she gets an extra year. It's an unusual situation, but it is spelled out in the rules, and her college can grant the extra year.
A
waiver can be granted for any "extenuating circumstance", but only an institution can apply for one. Most waivers are decided on an individual basis, but sometimes blanket waivers are issued. A blanket waiver will probably be eventually converted to a rule or exception.
So, in the situation you describe, the new college may succeed in obtaining a waiver. Generally, actions and circumstances surrounding waivers are not made public. For example, consider a player who has been attending a private college with high tuition, and whose family income drops significantly. He may be granted a waiver to play immediately at a new school, but the details of the family's financial situation won't be disclosed to the general public, nor the fact that the waiver was financially motivated.