§ 45-38.1-5.1. Powers relative to education loan financing programs.
(a) The corporation has all the powers necessary or convenient to carry out and effectuate
the purposes and provisions of this chapter, including the following powers in addition
to others granted by this chapter:
(1) To determine criteria and guidelines encompassing the type of, and qualifications
for, education loan financing programs and issuance of bonds or notes by the corporation,
including eligibility standards for borrowers that the corporation determines are
necessary or desirable in order to effectuate the purposes of this chapter;
(2) To establish specific criteria governing the eligibility of educational institutions
to participate in its programs and for the making of corporation loans and education
loans, the issuance of bonds or notes by the corporation, provisions for default,
the establishment of default reserve funds, the purchase of default insurance, the
provision by the institutions of prudent debt service reserves, and the furnishing,
by participating educational institutions and others, of additional guarantees of
the education loans, corporation loans, or bonds as the corporation determines;
(3) To establish rules and regulations with respect to corporation loans, education loans,
and education loan series portfolios;
(4) To receive and accept from any source, loans, contributions, or grants for or in aid
of a corporation education loan financing program, or any portion of it, and, when
desirable, to use the funds, property, or labor only for the purposes for which it
was loaned, contributed, or granted;
(5) To contract with guarantors, financial institutions, or other qualified loan origination
and servicing organizations, which shall assist in prequalifying borrowers for education
loans and service and administer each education loan. The corporation may require
that each borrower be charged a fee to defray the costs of origination, servicing,
and administration of education loans. The amount and method of collection of the
fee shall be determined by the corporation. Participating educational institutions
may perform these acts if authorized by the corporation;
(6) To contract with a guarantor to provide security for the payment of education loans
through the issuance of insurance against default, or to provide a guarantee of payment
covering all or a portion of each education loan made by or on behalf of the corporation
or by or on behalf of an educational institution from the proceeds of a corporation
loan;
(7) To make corporation loans to participating educational institutions and require that
the proceeds be used for making education loans and paying costs and fees in connection
with the loans;
(8) To charge and equitably apportion, among participating educational institutions, its
administrative costs and expenses incurred in the exercise of the powers and duties
granted by this section;
(9) Notwithstanding any other provisions in this chapter, to commingle and pledge as security
for a series or issue of bonds, only with the consent of all of the educational institutions
which are participating in the series or issue:
(i) The education loan series portfolios and some or all future education loan series
portfolios of the educational institutions; and
(ii) The loan funding deposits of the institutions; provided, that education loan series
portfolios and other security and monies set aside in any fund or funds pledged for
any series of bonds or issue of bonds are held for the sole benefit of the series
or issues, separate and apart from education loan series portfolios and other security
and monies pledged for any other series or issue of bonds of the corporation. Bonds
may be issued in series under one or more resolutions or trust agreements in the discretion
of the corporation;
(10) To examine records and financial reports of participating educational institutions,
and to examine records and financial reports of any person, organization, or institution
retained under subsections (a)(5) or (a)(6);
(11) To do all things necessary or convenient to carry out the purposes of this chapter.
(b) In carrying out the purposes of this chapter, the corporation may issue bonds, the
proceeds of which are loaned to two (2) or more participating educational institutions
or for any combination of participating educational institutions and, thereupon, all
other provisions of this chapter apply to and for the benefit of the corporation and
the participants in the joint program or programs. Any joint participation requires
the express approval of all participants.
(c) The corporation shall require that corporation loans be used solely for the purpose
of education loans and in an amount not to exceed the total cost of attendance, as
defined by the corporation, less other forms of student assistance that the corporation
may determine. The corporation shall require that educational institutions insist
that each borrower under an education loan use the proceeds solely for educational
purposes and purposes reasonably related to education, and that each borrower shall
so certify.
(d) Whenever refunding bonds are issued to refund bonds, the proceeds of which were used
to make corporation loans, the corporation may reduce or increase the amount it is
owed by the educational institution which had received corporation loans from the
proceeds of the refunded bonds. The educational institutions may reduce or increase
the amount of interest being paid on education loans which the institution has made
pursuant to the corporation loans from the proceeds of the refunded bonds.