Section 45-38.1-5.1 - Powers relative to education loan financing programs(a) The corporation has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others granted by this chapter:(1) To determine criteria and guidelines encompassing the type of, and qualifications for, education loan financing programs and issuance of bonds or notes by the corporation, including eligibility standards for borrowers that the corporation determines are necessary or desirable in order to effectuate the purposes of this chapter;(2) To establish specific criteria governing the eligibility of institutions for higher education to participate in its programs and for the making of corporation loans and education loans, the issuance of bonds or notes by the corporation, provisions for default, the establishment of default reserve funds, the purchase of default insurance, the provision by the institutions of prudent debt service reserves, and the furnishing, by participating institutions for higher education and others, of additional guarantees of the education loans, corporation loans, or bonds as the corporation determines;(3) To establish rules and regulations with respect to corporation loans, education loans, and education loan series portfolios;(4) To receive and accept from any source, loans, contributions, or grants for or in aid of a corporation education loan financing program, or any portion of it, and, when desirable, to use the funds, property, or labor only for the purposes for which it was loaned, contributed, or granted;(5) To contract with guarantors, financial institutions, or other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for education loans and service and administer each education loan. The corporation may require that each borrower be charged a fee to defray the costs of origination, servicing, and administration of education loans. The amount and method of collection of the fee shall be determined by the corporation. Participating institutions for higher education may perform these acts if authorized by the corporation;(6) To contract with a guarantor to provide security for the payment of education loans through the issuance of insurance against default, or to provide a guarantee of payment covering all or a portion of each education loan made by or on behalf of the corporation or by or on behalf of an institution for higher education from the proceeds of a corporation loan;(7) To make corporation loans to participating institutions for higher education and require that the proceeds be used for making education loans and paying costs and fees in connection with the loans;(8) To charge and equitably apportion, among participating institutions for higher education, its administrative costs and expenses incurred in the exercise of the powers and duties granted by this section;(9) Notwithstanding any other provisions in this chapter, to commingle and pledge as security for a series or issue of bonds, only with the consent of all of the institutions for higher education which are participating in the series or issue: (i) The education loan series portfolios and some or all future education loan series portfolios of the institutions for higher education; and(ii) The loan funding deposits of the institutions; provided, that education loan series portfolios and other security and monies set aside in any fund or funds pledged for any series of bonds or issue of bonds are held for the sole benefit of the series or issues, separate and apart from education loan series portfolios and other security and monies pledged for any other series or issue of bonds of the corporation. Bonds may be issued in series under one or more resolutions or trust agreements in the discretion of the corporation;(10) To examine records and financial reports of participating institutions for higher education, and to examine records and financial reports of any person, organization, or institution retained under subsections (a)(5) or (a)(6);(11) To do all things necessary or convenient to carry out the purposes of this chapter.(b) In carrying out the purposes of this chapter, the corporation may issue bonds, the proceeds of which are loaned to two (2) or more participating institutions for higher education or for any combination of participating institutions for higher education and, thereupon, all other provisions of this chapter apply to and for the benefit of the corporation and the participants in the joint program or programs. Any joint participation requires the express approval of all participants.(c) The corporation shall require that corporation loans be used solely for the purpose of education loans and in an amount not to exceed the total cost of attendance, as defined by the corporation, less other forms of student assistance that the corporation may determine. The corporation shall require that institutions for higher education insist that each borrower under an education loan use the proceeds solely for educational purposes and purposes reasonably related to education, and that each borrower shall so certify.(d) Whenever refunding bonds are issued to refund bonds, the proceeds of which were used to make corporation loans, the corporation may reduce or increase the amount it is owed by the institution for higher education which had received corporation loans from the proceeds of the refunded bonds. The institutions for higher education may reduce or increase the amount of interest being paid on education loans which the institution has made pursuant to the corporation loans from the proceeds of the refunded bonds.R.I. Gen. Laws § 45-38.1-5.1
P.L. 1982, ch. 301, § 3; P.L. 1991, ch. 292, §1; P.L. 2000 , ch. 184, § 1.