§ 23-3.1-107 — Student loan guarantee fund - created

Colorado § 23-3.1-107

• Jurisdiction: Colorado
• Title 23: Postsecondary Education
• Art.: Student Loan Program

Text

(1) (a) There is hereby
created in the state treasury a fund to be known as the student loan guarantee fund
that shall contain:

(I) A reserve account for guaranteed student loans that is established to
fulfill the functions of the federal student loan reserve fund established by section
422A of the federal Higher Education Act of 1965, as amended;

(II) An operating account that is established to fulfill the functions of the
agency operating fund established by section 422B of the federal Higher
Education Act of 1965, as amended;

(III) A loan servicing account; and

(IV) Such other accounts as the division may require.

(b) The reserve account shall be used only for those purposes permitted by
section 422A of the federal Higher Education Act of 1965, as amended. All
moneys required to be deposited by the division in the federal student loan reserve
fund created by said act shall be deposited in the reserve account. The division
shall maintain at all times a minimum reserve requirement that is equal to, and
calculated in the same manner as, that which is required for the federal student
loan reserve fund established by said act. Such minimum reserve requirement may
be maintained in cash in such account or in federal reinsurance receivables held by
the division.

(c) The operating account shall be used only for those purposes permitted by
section 422B of the federal Higher Education Act of 1965, as amended. All
moneys required to be deposited by the division in the agency operating fund
created by said act shall be deposited in the operating account.

(d) The loan servicing account shall be used for the deposit of revenues
generated by the division's loan servicing activities and for the payment of
expenses related to those activities. Until such time as the division has reached
agreement with the federal department of education as to the monetary amount of
any federal interest in the loan servicing account, and has made arrangements to
satisfy that interest, moneys in the loan servicing account shall be considered the
property of the United States. After any federal interest in the loan servicing
account has been satisfied pursuant to the agreement, all revenues remaining in
the loan servicing account, after payment of expenses attributable to the account,
may be transferred to either the operating account or the reserve account for such
uses as are permitted for those accounts.

(e) Other income earned or received by the division that is not required to be
deposited in the reserve account or the loan servicing account may be deposited in
the operating account, which shall be used to pay staff compensation and other
expenses of the division.

(f) Repealed.

(2) All moneys deposited or paid into the student loan guarantee fund,
including any interest earned from the investment of this fund and income earned
or received by the division, shall be continuously available and are hereby
appropriated to the division to be expended in accordance with the provisions of
this article. Any income or interest earned from the investment of this fund shall be
credited to the student loan guarantee fund. Such investment income or interest,
together with any other income earned or received by the division, shall be
apportioned to each account as required by applicable law and may be used only
for the purposes permitted thereby.

Legislative History

Source: L. 79: Entire article added, p. 811, � 1, effective July 1. L. 84: Entire section R&RE, p. 621, � 11, effective April 10. L. 85: (1)(b) amended, p. 775, � 9, effective April 5. L. 91: (1)(b) amended, p. 590, � 1, effective March 28. L. 2001: (1) R&RE and (2) amended, pp. 165, 166, �� 1, 2, effective March 28. L. 2004: (1)(f) repealed, p. 202, � 18, effective August 4.