§ 653 — Powers and duties of the board

§ 653. Powers and duties of the board. In furtherance of the purposes\nset forth in this article, the board of trustees shall have the\nfollowing powers and duties:\n 1. To take, hold and preserve, on behalf of the corporation all moneys\nappropriated to the corporation or otherwise available to it.\n 2. a. To submit to the governor, the temporary president of the\nsenate, the speaker of the assembly, the senate finance committee, the\nassembly ways and means committee and the standing committees of the\nlegislature having jurisdiction of higher education, at such times as\nthe director of the budget may prescribe a student aid and loan budget\nrequest for the following state fiscal year. The budget request shall\ninclude, but not be limited to estimates of the number and\ncharacteristics of students eligible for aid and loans, other than\neducation loans made under the New York higher education loan program\npursuant to part V of this article which budget request shall be\ndeveloped by the president after consultation with the board of regents\nin order to implement the student financial aid and loan programs, other\nthan education loans made under the New York higher education loan\nprogram pursuant to part V of this article provided for in this article.\nNotwithstanding, the budget request shall also include an estimate of\nthe amounts needed for state operations within the New York higher\neducation loan program account for purposes of the New York higher\neducation loan program established pursuant to part V of this article. A\ncopy of the budget request shall be transmitted to the commissioner for\nhis information. The budget request submitted by the board shall be\nsubject to approval annually as part of the executive budget.\n b. At the time and in the format prescribed by the Director of the\nBudget, the Board shall submit to the Division of the Budget an\nadministrative and operating budget request. This budget request shall\nbe subject to approval annually as part of the executive budget.\n c. In order further to assure the payment by the corporation to\nlending institutions for defaulted loans, other than education loans\nmade under the New York higher education loan program pursuant to part V\nof this article in the respective amounts as guaranteed by the\ncorporation pursuant to contract, there shall be annually apportioned\nand paid to the corporation such estimated amount, if any, as shall be\ncertified by the board to the governor and director of the budget as\nnecessary to provide for the payment of all such defaults for the next\nensuing state fiscal year. The board shall, as part of its annual budget\nrequest, make and deliver to the governor and director of the budget,\nits certificate stating the estimated amount, if any, required to pay\nsuch defaults for the ensuing state fiscal year, if any, and said sums\nshall be apportioned and paid to the corporation during such fiscal\nyear.\n 3. To submit on or before November first of each calendar year an\nannual report to the board of regents, the governor, the temporary\npresident of the senate, the speaker of the assembly, the senate finance\ncommittee, the assembly ways and means committee and the standing\ncommittees of the legislature having jurisdiction of higher education.\n 4. To sue and be sued in the name of the corporation provided,\nhowever, a claim for money damages against the corporation, except where\nsuch claim is based on an alleged guarantee made by the corporation\nunder the federal guaranteed student loan programs or is for interest or\nother subsidies payable by the federal government under such programs,\nshall be made solely under and pursuant to the provisions of the court\nof claims act including but not limited to service thereunder upon the\nattorney general. Except in the case where the provisions of the court\nof claims act apply, process in any action or proceeding may be served\nupon the secretary of state as agent for the corporation, in the manner\nprovided by section three hundred six of the business corporation law.\nProvided, however, notwithstanding any inconsistent provision of law,\nthe venue of an action brought by or on behalf of the corporation on any\nloan made or guaranteed by it which is in default, may be laid in Albany\ncounty or any other county otherwise permitted by law and in any action\nbrought against the corporation the venue shall be laid in the county of\nAlbany. Provided further however, that in an action brought by or on\nbehalf of the corporation on any loan made or guaranteed by it which is\nin default, a defendant shall be entitled, upon motion made in the\ncounty in which venue has been laid and upon a showing of facts\nsufficient to require a trial of any issue of fact, to a change of venue\nto any other county permitted by law.\n 5. To procure a policy or policies of group life insurance to insure\nthe repayment of loans made or guaranteed by the corporation in the\nevent of the death of an individual to whom a loan is made or guaranteed\nhereunder.\n 6. To appoint an advisory council to consist of three student\nfinancial aid officers from public institutions of higher education,\nthree student financial aid officers from private institutions of higher\neducation, three representatives of banking institutions within the\nstate, and four students, one of whom shall be a student registered in a\nfull time course of study at an institution of the state university, one\nof whom shall be a student registered in a full time course of study at\nan institution of the city university of the city of New York, one of\nwhom shall be a student registered in a full time course of study at an\nindependent institution of higher education within the state, and one of\nwhom shall be a student registered in a full time course of study at a\ncommunity college located outside of the city of New York, to assist the\ncorporation on a regular basis in carrying out its purposes. The four\nstudent members shall be appointed after consultation with and\nrecommendations from appropriate student organizations. Appointments\nshall be for a period of three years, except that of the student members\nwhich shall be for one year, and except that of the members first\nappointed from public institutions of higher education and of the\nmembers first appointed from private institutions of higher learning and\nof the members first appointed from banking institutions, respectively,\none shall be appointed for a term of one year beginning July first,\nnineteen hundred seventy-five and ending June thirtieth, nineteen\nhundred seventy-six, one shall be appointed for a term of two years\nbeginning July first, nineteen hundred seventy-five and ending June\nthirtieth, nineteen hundred seventy-seven and one shall be appointed for\na term of three years beginning July first, nineteen hundred\nseventy-five and ending June thirtieth, nineteen hundred seventy-eight.\nAny members whose employment or student status ceases to conform to the\nabove requirements shall be required to resign. Vacancies shall be\nfilled for the unexpired term in the same manner as original\nappointments.\n 7. To prescribe, with the approval of the comptroller, a system of\naccounts.\n 8. To take, hold and administer, on behalf of the corporation and for\nany of its purposes, real property, personal property and moneys, or any\ninterest therein, and the income therefrom, either absolutely or in\ntrust, for any purpose of the corporation. The board may acquire\nproperty or moneys for such purpose by purchase or lease in accordance\nwith the requirements of article eleven of the state finance law and by\nthe acceptance of gifts, grants, bequests, devises or loans; provided,\nhowever, that no obligation of the corporation shall be a debt of the\nstate.\n 9. To perform such other acts as may be necessary or appropriate to\ncarry out the objects and purposes of the corporation as specified in\nthis article including promulgation of rules and regulations, which\nshall be filed in accordance with section one hundred one-a of the\nexecutive law.\n