(a) There is established the Arkansas Student Loan Authority.
(b) The authority shall exercise the powers and duties provided under this section.
(c) The authority shall be a public body politic and corporate, with corporate succession, and shall be the instrumentality of the state charged with a portion of the responsibility of the state to provide educational opportunities in keeping with all applicable state and federal laws.
(d) (1) The authority shall be composed of a seven-member board of directors to be appointed by the Governor.
(2) At least one (1) member of the authority shall be a representative of a bank or other private lending institution, and at least one (1) member shall be a financial aid officer from an eligible institution. At least one (1) member of the authority shall be a female, and at least one (1) member shall be a member of a racial minority.
(e) All appointments shall be for a term of four (4) years each or until a successor is appointed.
(f) All vacancies in membership on the authority occurring during a term shall be filled by appointment of the Governor for the unexpired portion of the term.
(g) The authority shall meet at such times and at such places and shall remain in session for such periods of time as the authority shall deem necessary to properly carry out its responsibilities under this subchapter.
(h) The members of the board of directors of the authority may receive a stipend and expense reimbursement in accordance with § 25-16-901 et seq.
(i) The authority shall select from its membership a chair and secretary.
(j) The authority shall employ a director and such other professional and clerical assistance, including legal assistance, as it shall deem necessary or appropriate to properly carry out its responsibilities.
(k) The authority may adopt such rules to be followed by the authority in conducting its business as necessary to carry out the purposes of this subchapter, including rules governing:
(1) Compliance statutes or regulations governing the guaranty, insurance, purchase, or other dealing in guaranteed educational loans or education loans by corporations or federal agencies; and
(2) Standards of eligibility for educational institutions, students, and lenders.
(l) Except as otherwise limited by this subchapter, the authority has the power to:
(1) Sue;
(2) Be sued;
(3) Seal and alter the seal;
(4) Make and alter bylaws for organization and internal management of the authority;
(5) Acquire, hold, and dispose of real and personal property;
(6) Appoint officers, agents, and employees;
(7) Prescribe duties, qualifications, and compensation for officers, agents, and employees;
(8) Borrow money and issue notes, bonds, and other obligations, whether or not the interest is subject to federal income taxation and whether or not on a pooled or consolidated basis;
(9) (A) Issue bonds to provide financing for:
(i) A specific activity or project; or
(ii) Activities or projects secured by and payable solely from the bonds, loan payments, lease payments, or other obligations issued by or payable to the authority and the security and sources of payments.
(B) The authority may request proposals for services before selecting a financial institution to serve as trustee or paying agent, or in any fiduciary capacity in connection with any program, indenture, or general resolution of the authority;
(10) Make, acquire, take, or purchase guaranteed education loans and education loans with the proceeds of bonds, notes, or any other funds of the authority available or any interest or participation in it:
(A) In any amount;
(B) At any price; and
(C) Upon any terms and conditions the authority determines necessary;
(11) Sell guaranteed educational loans or education loans held by the authority to governmental or private financial institutions;
(12) Borrow from governmental or private financial institutions against the security of the guaranteed educational loans or education loans:
(A) In any amount;
(B) At any price; and
(C) Upon any terms and conditions the authority determines necessary;
(13) Consent to the modification with respect to security, rate of interest, time of payment of interest or principal, or any other terms of an obligation, bond, note, contract, or agreement between the authority and the recipient or maker of the loan, obligation, bond, note holder, agency, or institution guaranteeing the repayment, purchasing, or selling of a guaranteed educational loan, when the authority determines it is necessary, subject to a contract with the holders of the bond holders, note holders, or contractees;
(14) Collect fees and charges in connection with loans, commitments, and servicing, including without limitation the reimbursement of the cost of financing, as determined reasonable and approved by the authority;
(15) Service student loan programs administered by the authority or in which the authority participates or make and execute contracts with an agency, financial institution, or corporation organized under the laws of any state, where the agency, financial institution, or corporation shall service student loan programs administered by the authority or in which the authority participates;
(16) Enter into contracts with schools, lenders, individuals, corporations, other agencies of the state, other states, the United States Department of Education, and other agencies of the federal government to service education loans or guaranteed educational loans, regardless of where the loans originated;
(17) Accept gifts, grants, loans, and other aid from the federal government, the state, a state agency, political subdivisions of the state, a person, a corporation, a foundation, or a legal entity and comply with all conditions attached to the gift, grant, loan, or other aid consistent with this subchapter;
(18) Procure insurance against any loss in connection with the programs, property, and assets of the authority;
(19) Invest moneys of the authority, including proceeds from the sale of bonds, as agreed upon with bondholders, stated in the authorizing resolutions providing for the issuance of bonds and determined by the directors;
(20) Enter into contract with and provide technical assistance and advice to the state, political subdivisions of the state, and local governing authorities;
(21) Conduct studies and analyses of the student loan funding needs within the state and options for meeting student loan funding needs;
(22) Establish accounts in one (1) or more depositories;
(23) Lease, acquire, construct, sell, and deal in contracts concerning facilities;
(24) Participate in federal and other governmental programs established for the purpose of the promotion and development of higher education, student loans, and related matters;
(25) (A) Create one (1) or more nonprofit special purpose corporations for accomplishing the purposes under this subchapter.
(B) Directors and officers of the authority may serve as directors of nonprofit corporations established under this subdivision (l)(25).
(C) Obligations issued by a nonprofit corporation are subject to §§ 6-81-107 and 6-81-108.
(D) The authority may contract with a nonprofit corporation;
(26) Enter into contracts to guaranty education loans, establish reserve accounts related to guaranty agreements, and adopt rules and criteria for guaranties;
(27) Enter into interest rate exchange agreements or similar agreements or contracts; and
(28) Perform the functions necessary to fulfill the purposes of this subchapter.
Section: 6-81-102 6-81-104 6-81-106 6-81-107 6-81-108 6-81-109 6-81-110 6-81-111 6-81-112 6-81-113 6-81-114 6-81-115 6-81-116 6-81-118 NextLast modified: November 15, 2016