§ 23-3.1-205.4 — Collegeinvest fund - creation - control - use

Colorado § 23-3.1-205.4

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

Text

(1) (a) There is
hereby created in the state treasury the Colorado student obligation bond authority
fund, to be known and referred to on and after July 1, 2004, as the collegeinvest
fund, which shall be under the control of the authority in accordance with the
provisions of this part 2 and part 3 of this article. The moneys in the collegeinvest
fund shall be invested by the state treasurer. Except as otherwise allowed by
section 24-36-103 (2), C.R.S., and except for amounts received in connection with
the prepaid expense program and the savings programs in part 3 of this article, all
moneys received or acquired by the authority, whether by appropriation, grant,
contract, gift, sale or lease of surplus real or personal property, or any other means,
whose disposition is not otherwise provided for by law or by a trust indenture, and
all interest derived from the deposit and investment of moneys in the fund shall be
credited to said fund, including moneys received pursuant to sections 23-3.1-206
(1)(k) and 23-3.1-304 (1)(h). Except as provided in paragraph (b) of this subsection (1),
the moneys in the fund are hereby continuously appropriated to the authority and
shall remain in the fund and shall not be transferred or revert to the general fund of
the state at the end of any fiscal year.

(b) Notwithstanding the provisions of paragraph (a) of this subsection (1), if
the authority sells, transfers, or enters into a contract with another entity
concerning all or a substantial portion of the authority's power to make, originate,
disburse, or service loans, the proceeds of the sale, transfer, or contract shall not
be used by the authority without further appropriation by the general assembly.

(c) Notwithstanding any provision of paragraph (a) of this subsection (1) to
the contrary, if the authority or any other division of the department sells, transfers,
or enters into a contract with another entity concerning all or any portion of the
authority's or division's interest in any student loans or student obligations, the
authority or the division shall deposit the net proceeds of the sale, transfer, or
contract as follows:

(I) Up to five million dollars shall remain in the reserve account in the
collegeinvest fund, which account is hereby created, and may be used: To fund the
repurchase of student loans sold by the authority if a guarantee agency refuses to
honor a claim filed with respect to any such loans on account of an event that
occurred prior to the sale; and to pay all liabilities, costs, and expenses with respect
to the authority's programs to undertake forgiveness of indebtedness under such
student loans sold by the authority.

(II) After the retention of the amount required in subparagraph (I) of this
paragraph (c), up to five million dollars of the remaining proceeds shall remain in
the transition account in the collegeinvest fund, which account is hereby created to
pay costs and expenses associated with the transition and wind-down of the
authority's student loan program. Any expenditure from the transition account in
excess of one hundred thousand dollars shall require the approval of the executive
director.

(III) to (IV) Repealed.

(2) The moneys in the collegeinvest fund may be used by the authority for
the payment of salaries and operating and administrative expenses of the authority
and for the payment of any other expenses incurred by the authority in carrying out
its statutory powers and duties.

(3) The moneys in the collegeinvest fund that are not needed for immediate
use by the authority may be invested by the state treasurer in investments
authorized by sections 24-36-109, 24-36-112, and 24-36-113, C.R.S. The authority
shall determine the amount of moneys in the fund that may be invested and shall
notify the state treasurer in writing of such amount.

(4) The authority may request authorization to transfer or loan moneys from
the collegeinvest fund to the prepaid expense trust fund, created in section 23-3.1-206.7, or to any fund created for the implementation of the savings programs,
established pursuant to part 3 of this article, as necessary to carry out the
authority's powers and duties under this part 2 and part 3 of this article. The
authority shall submit any such transfer or loan request to the executive director
for approval. The authority shall not transfer or loan moneys from the collegeinvest
fund to the prepaid expense trust fund or to any fund created for the
implementation of the savings programs unless such transfer or loan is approved by
the executive director.

Legislative History

Source: L. 2000: Entire section added, p. 1274, � 6, effective May 26. L. 2003: (4) added, p. 552, � 1, effective August 6. L. 2004: Entire section amended, p. 564, � 11, effective July 1. L. 2006: (1) amended, p. 514, � 13, effective July 1. L. 2008: (2) amended, p. 203, � 1, effective August 5. L. 2010: (1)(c) and (1)(c)(III.5) added and (1)(c)(IV) amended, (HB 10-1428), ch. 390, p. 1828, 1831, �� 2, 10, effective June 9. L. 2014: (1)(c)(III.5) repealed and (1)(c)(IV) amended, (HB 14-1363), ch. 302, p. 1266, � 18, effective May 31; (1)(c)(I) and (1)(c)(II) amended and (1)(c)(III) and (1)(c)(IV) repealed, (HB 14-1384), ch. 347, p. 1559, � 4, effective August 6. L. 2015: (1)(a) and (4) amended, (HB 15-1359), ch. 269, p. 1054, � 14, effective June 3.