Indiana § 21-16-5-3 Powers of corporation; report to the budget committee

Indiana Statutes

§ 21-16-5-3 — Powers of corporation; report to the budget committee

Indiana·Title 21 HIGHER EDUCATION·Art. 16 EARN INDIANA PROGRAM; STUDENT LOANS;·Ch. 5 Secondary Market for Guaranteed Student Loans

(a)The corporation must, under its articles of incorporation, limit its powers to those described in subsection (b).

(b)The corporation may:

(1)borrow money, only after consulting with the Indiana finance authority not less than three (3) months prior to the date the corporation begins the process of borrowing money;

(2)purchase, sell, and retire education loans, if the loans are not in default status;

(3)provide incentive services and payments, including the payment of premiums for the purchase of education loans and the payment of an origination fee, to assist lending institutions that provide education loans;

(4)loan funds to lending institutions if:

(A)the lending institution agrees to use the funds to originate education loans of an amount equal to the loan made by the corporat

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(a) The corporation must, under its articles of
incorporation, limit its powers to those described in subsection (b).
(b) The corporation may:
(1) borrow money, only after consulting with the Indiana finance
authority not less than three (3) months prior to the date the
corporation begins the process of borrowing money;
(2) purchase, sell, and retire education loans, if the loans are not
in default status;
(3) provide incentive services and payments, including the
payment of premiums for the purchase of education loans and the
payment of an origination fee, to assist lending institutions that
provide education loans;
(4) loan funds to lending institutions if:
(A) the lending institution agrees to use the funds to originate
education loans of an amount equal to the loan made by the
corporation over a period agreeable to the corporation and to
grant the corporation the right of first refusal to purchase those
education loans;
(B) the lending institution agrees to use education loans or
government securities as collateral for the loan; and
(C) the corporation has, in response to its written request,
received written authorization from the governor to exercise the
power described in this subdivision;
(5) make direct loans to or for the benefit of an education loan
borrower or to consolidate all or a part of the borrower's
outstanding education loans into one (1) loan;
(6) operate a secondary market for postsecondary education
finance instruments, including tuition certificates and education
savings certificates sold by or offered through lending institutions
or postsecondary educational institutions;
(7) provide financial literacy and educational tools to students,
their families, and Indiana colleges and universities with respect
to responsibly financing the costs of higher education; and
(8) do all other things that are necessary or incidental to
performing the functions listed in subdivisions (1) through (7).
(c) The corporation, and any entity doing business as the
corporation, including:
(1) the Indiana Secondary Market for Educational Loans, Inc.;
(2) INvestED; or
(3) any other entity doing business as the corporation;
shall, at least thirty (30) days prior to the issuance or placement of any
bond, note, or other instrument by the corporation under this chapter,
report to the budget committee the estimated amount of the bonds.
[Pre-2007 Higher Education Recodification Citations:
20-12-21.2-3(b); 20-12-21.2-3(a).]

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