(1) (a) There is hereby created in the state treasury a fund to be known as the student loan guarantee fund that shall contain:
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;
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;
A loan servicing account; and
Such other accounts as the division may require.
The reserve account shall be used only for those purposes permitted by section 422Aof 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.
The operating account shall be used only for those purposes permitted by section422B 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.
The loan servicing account shall be used for the deposit of revenues generated by thedivision'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.
Other income earned or received by the division that is not required to be depositedin 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.
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.
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.