2023 Indiana Code
Title 21. Higher Education
Article 16. Earn Indiana Program; Student Loans; Legal Capacity to Contract for Student Loans
Chapter 5. Secondary Market for Guaranteed Student Loans
21-16-5-3. Powers of Corporation; Report to the Budget Committee

Sec. 3. (a) The corporation must, under its articles of incorporation, limit its powers to those described in subsection (b).

(b) The corporation may:

(1) borrow money, only after consulting with the Indiana finance authority not less than three (3) months prior to the date the corporation begins the process of borrowing money;

(2) purchase, sell, and retire education loans, if the loans are not in default status;

(3) provide incentive services and payments, including the payment of premiums for the purchase of education loans and the payment of an origination fee, to assist lending institutions that provide education loans;

(4) loan funds to lending institutions if:

(A) the lending institution agrees to use the funds to originate education loans of an amount equal to the loan made by the corporation over a period agreeable to the corporation and to grant the corporation the right of first refusal to purchase those education loans;

(B) the lending institution agrees to use education loans or government securities as collateral for the loan; and

(C) the corporation has, in response to its written request, received written authorization from the governor to exercise the power described in this subdivision;

(5) make direct loans to or for the benefit of an education loan borrower or to consolidate all or a part of the borrower's outstanding education loans into one (1) loan;

(6) operate a secondary market for postsecondary education finance instruments, including tuition certificates and education savings certificates sold by or offered through lending institutions or postsecondary educational institutions;

(7) provide financial literacy and educational tools to students, their families, and Indiana colleges and universities with respect to responsibly financing the costs of higher education; and

(8) do all other things that are necessary or incidental to performing the functions listed in subdivisions (1) through (7).

(c) The corporation, and any entity doing business as the corporation, including:

(1) the Indiana Secondary Market for Educational Loans, Inc.;

(2) INvestED; or

(3) any other entity doing business as the corporation;

shall, at least thirty (30) days prior to the issuance or placement of any bond, note, or other instrument by the corporation under this chapter, report to the budget committee the estimated amount of the bonds.

[Pre-2007 Higher Education Recodification Citations: 20-12-21.2-3(b); 20-12-21.2-3(a).]

As added by P.L.2-2007, SEC.257. Amended by P.L.132-2013, SEC.4; P.L.224-2023, SEC.9.