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164.748 Powers and duties of board.
The board shall have the following powers, functions, and duties:
(1) To provide loan guarantees, upon terms and conditions the board may
prescribe within the limitations provided by KRS 164.740 to 164.770, and the
federal act in respect of loans to eligible borrowers. The board may require
additional security, including endorsers it deems necessary and desirable and
is not in contravention of the federal act. The purpose of the loans shall be to
assist individuals in meeting the expense of their education.
(2) To enter into agreements and undertakings with the secretary as may be
required and necessary pursuant to the federal act in order to constitute the
authority as a state agency qualified and empowered to insure student loans
within the meaning of the federal act and to qualify insured student loans for
interest payments, reimbursement, reinsurance, and other benefits available
under the federal act to the authority.
(3) To issue loan guarantees in respect of loans made to eligible borrowers by
participating lenders, including the authority. No loan guarantee shall be
issued, executed, and delivered by the authority unless any insured student
loan resulting shall be the subject of agreements pursuant to the federal act by
which the insured student loan is made the subject of interest payments,
reimbursements, reinsurance, and other benefits to the extent provided by the
federal act.
(4) To promulgate administrative regulations pursuant to KRS Chapter 13A
pertaining to insured student loans, loan guarantees, loans, and work-study
payments and the awarding of grants, scholarships, and honorary
scholarships, as provided in KRS 164.740 to 164.7891.
(5) To enter into contracts with eligible lenders, approved by the state to lend
moneys, upon terms and conditions agreed upon between the authority and
the eligible lender, to provide for the administration of student financial
assistance programs, including, but not by way of limitation, the authority's
program of insured student loans.
(6) To enter into contracts with eligible institutions, upon terms and conditions
agreed upon between the authority and the eligible institution, to provide for the
administration of student financial assistance programs, including, but not by
way of limitation, the authority's program of insured student loans.
(7) To receive funds from any source, public or private, by gift, grant, bequest,
loan, or otherwise, either absolutely or in trust, and to expend them, on behalf
of the authority and for any of its purposes; and to acquire from any source,
public or private, by purchase, lease, gift, bequest, or devise, any property,
real, personal, or mixed, absolutely or in trust, and to hold, administer, and
dispose of it, on behalf of the authority and for any of its purposes. The
authority shall not make its debts payable out of any funds except those of the
authority.
(8) To administer federal funds allotted to the state in respect of insured student
loans, loan guarantees, loans, work-study, grants, scholarships, administrative
costs, and related matters.
(9) To sue and be sued in the name of the authority and to plead and be
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impleaded, and to purchase, on behalf of members of the board or officers and
employees of the authority, liability insurance for individual protection from
liability for acts and omissions committed in the course and scope of the
individual's employment or service.
To collect from individual borrowers loans made by the authority and insured
student loans on which the authority has been compelled to meet its loan
guarantee obligations following the inability of the participating lender involved
to collect the insured student loans.
To gather information on all loans, scholarships, honorary scholarships, grants,
and work-study opportunities available to Kentucky residents attending or
planning to attend an eligible institution and to disseminate the information
through the methods of mass communication necessary to ensure that
Kentucky residents are aware of financial resources available to those
attending or desiring to attend an eligible institution.
To request reports from each eligible institution or eligible lender necessary for
the effective performance of its duties and to publish the information it deems
necessary.
To approve, disapprove, limit, suspend, or terminate the participation of, or
take emergency action to withhold authority funds and insured student loans
from eligible institutions or eligible lenders in programs administered by the
board, subject to the provisions of the federal act and this chapter.
To perform other acts necessary or appropriate to carry out effectively the
purposes of the authority as provided by KRS 164.740 to 164.7891 and KRS
164A.010 to 164A.380.
If any conflict exists between KRS 164.740 to 164.770 and the federal act,
which conflict would result in a loss by the authority of any federal funds,
including, but not by way of limitation, federal funds made available to the
authority under the federal act, including interest payments and reimbursement
for insured student loans in default, to promulgate regulations and policies
consistent with the federal act not in derogation of the Constitution and general
laws of the Commonwealth.
Except where specifically prohibited by law, to secure data from any other
Commonwealth of Kentucky agency or instrumentality or from any other source
in furtherance of any purposes of the authority related to any program or
function administered by the authority.
To enter into contracts with public or private nonprofit agencies, eligible to hold
or insure student loans under the federal act, to provide for the exchange of
information, not in contravention of any federal or state law, or the provision of
services necessary to the administration of the authority's insured student loan
programs.
To enter into contracts with the Kentucky Higher Education Student Loan
Corporation, the Kentucky Educational Savings Plan Trust, and the
Commonwealth postsecondary education prepaid tuition trust fund as
necessary or appropriate to facilitate their common administration, operation,
and management, as required pursuant to KRS Chapter 164A.
To act as the board of directors of the Commonwealth postsecondary
education prepaid tuition trust fund under KRS 164A.700 to 164A.709.
(20) To conduct, in accordance with KRS Chapter 13B, administrative hearings
pertaining to any adverse action by the authority affecting participating
institutions and lenders, eligible students, and borrowers of loans made by the
authority and insured student loans guaranteed by the authority. Wage
garnishment hearings and administrative review procedures pertaining to
disputes concerning setoff of federal tax refunds shall be exempt under KRS
13B.020 and shall be conducted in accordance with applicable federal law. In
an exempt hearing, the board or a hearing officer designated by the board may
issue administrative subpoenas for the attendance of witnesses and the
production of documents relevant to the issues in dispute. Compliance with the
subpoenas shall be enforceable by a court of competent jurisdiction.
(21) To provide upon termination of the retirement plan authorized by Executive
Order 75-964 to active and retired employees of the authority who participated
in that plan, health insurance premiums and disability insurance benefits as
provided to employees who participate in a state-administered retirement
system pursuant to KRS 18A.225 to 18A.229, 61.600, and 61.702.
(22) To delegate to the executive director general supervision and direction over the
administrative function of the authority and its employees in carrying out the
policies, programs, administrative regulations, and directives of the board.
Effective:July 1, 2005
History: Amended 2005 Ky. Acts ch. 162, sec. 2, effective July 1, 2005. -Amended 2004 Ky. Acts ch. 111, sec. 2, effective July 13, 2004. -- Amended
2003 Ky. Acts ch. 180, sec. 7, effective June 24, 2003. -- Amended 1996 Ky.
Acts ch. 318, sec. 55, effective July 15, 1996. -- Amended 1994 Ky. Acts
ch. 447, sec. 2, effective April 11, 1994. -- Amended 1982 Ky. Acts ch. 403,
sec. 4, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 339, sec. 5,
effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 135, sec. 4. -- Created
1966 Ky. Acts ch. 93, sec. 5.
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