The foundation may from time to time issue negotiable bonds in conformity with the applicable provisions of the Uniform Commercial Code [Chapter 55 NMSA 1978]. The foundation shall have all the powers necessary and convenient to carry out its purposes under the Educational Assistance Act or other purpose identified by the foundation, including the following powers:
A. to make or participate in the making of educational loans, to purchase or participate in the purchase of educational loans and to contract in advance for any such purchase or to purchase and retain rights to make any such purchase and to pay any amounts payable in respect of such rights;
B. to sell or participate in the sale of educational loans to the student loan marketing association or to other purchasers, in conformity with the federal Higher Education Act of 1965, as amended, any such sale to be public or private and on such terms as the foundation may authorize, and to contract in advance for any such sale or to purchase and retain rights to make any such sale and to pay commitment fees or any other amounts payable in respect of such rights;
C. to collect and pay reasonable fees and charges in connection with the making, purchasing, selling and servicing or the causing to be made, purchased, sold or serviced of educational loans held by the foundation;
D. to enter into an agreement with insurance carriers to insure against any loss in connection with its operations, including without limitation the repayment of any educational loan, in such amounts and from such insurers as it deems necessary or desirable and pay the premiums for that insurance;
E. to consent, when it deems appropriate, to the modification of the rate of interest, the time of payment of any installment of principal or interest or any other terms of any educational loan held by the foundation; provided that no such consent shall be made or given if the effect would be to lessen or invalidate any insurance coverage or reinsurance in respect of any such educational loan;
F. to employ an executive director and such other officers and employees as it deems necessary and set their compensation and prescribe their duties;
G. to make, execute and effectuate any and all agreements or other documents with any federal or state agency or other person, corporation, association, partnership, organization or entity necessary to accomplish its purposes under the Educational Assistance Act;
H. to authorize a retirement program for salaried officers and employees of the foundation;
I. to authorize reimbursement of expenses of salaried officers and employees of the foundation;
J. to purchase liability insurance for officers and directors and such other insurance as may be reasonable and necessary;
K. to accept loans, public or private grants, devises, gifts, bequests and any other aid from any source whatsoever and to agree to and comply with conditions incident thereto;
L. to sue and be sued in its own name and to plead and interplead;
M. to adopt an official seal and alter it at pleasure;
N. to adopt bylaws and policies for the regulation of its affairs and the conduct of its business;
O. to employ fiscal consultants, attorneys, counselors and such other consultants and employees as may be required in its judgment and to fix and pay their compensation;
P. to invest any funds held in reserves, held in sinking fund accounts or not required for immediate disbursement;
Q. to fix, revise from time to time, charge and collect fees and other charges for services rendered by the foundation in connection with educational loan, scholarship, grant, work study and other educational assistance programs; and
R. to do any and all things necessary or convenient to carry out its purpose and powers under the Educational Assistance Act or other purpose identified by the foundation.
History: Laws 1981, ch. 319, § 7; 1989, ch. 19, § 5; 2005, ch. 201, § 5; 2011, ch. 168, § 2.
ANNOTATIONSCross references. — For the federal Higher Education Act of 1965, see 20 U.S.C. § 1001 et seq.
The 2011 amendment, effective June 17, 2011, broadened the power of the foundation by eliminating the limitations on the compensation and reimbursement of expenses paid to officers and employees in Subsections F and I, and by authorizing the foundation to carry out purposes identified by the foundation in addition to the purposes of the Educational Assistance Act in Subsection R; and eliminated the foundation's authority to adopt rules respecting the foundation's educational loan program and its functions and duties.
The 2005 amendment, effective June 17, 2005, deleted the requirement that loans be insured in Subsections A through E and G and deleted in Subsection G reference to regulations
Loans to nonresidents. — This article does not prohibit the foundation from making insured student loans to otherwise eligible nonresidents enrolled in eligible New Mexico educational institution. 1988 Op. Att'y Gen. No. 88-60.