(a) The Corporation shall establish and maintain an allowance for loans not covered by a federal or other guaranty or insurance, using historical loan delinquency and default rates and other relevant information. To the extent the reserve fund contains any monies appropriated by the State, such reserve funds shall be held and administered in accordance with 32 V.S.A. § 432 and 433. Any such allowance may not be funded from monies appropriated by the General Assembly to the Corporation unless specifically appropriated for such purposes.

(b) The Corporation is authorized to negotiate and enter into agreement with the United States Secretary of Education to reinsure its guarantee of any loans made under this chapter, and to amend such agreements, consistent with this chapter. (Added 1965, No. 198, § 7(d); amended 1969, No. 83, § 2, eff. April 18, 1969; 1981, No. 174 (Adj. Sess.), § 4, eff. April 20, 1982; 1993, No. 147 (Adj. Sess.), § 5; 2003, No. 86 (Adj. Sess.), § 26.)