J. MILLARD TAWES, Governor                       119

time basis [shall] may be eligible for loans hereunder. The board
[shall] may, by rule, establish minimum qualifications for a person to
be deemed a part-time student for the purposes hereof. The board shall
have the power to procure a policy or policies of group life insurance
to insure the repayment of loans made or guaranteed by the corpora-
tion in the event of the death of an individual to whom a loan is
made or guaranteed hereunder.

(b)  To take, hold and administer, on behalf of the corporation and
for any of its purposes, real property, personal property and moneys,
or any interest therein, and the income therefrom, either absolutely
or in trust, for any purpose of the corporation from any source
whatever. The board of directors may acquire property or moneys
for such purpose by purchase or lease and by the acceptance of
governmental appropriations, gifts, grants, bequests, devises or loans
including, but not by way of limitation, such funds as may from time
to time be appropriated by the General Assembly, the same to be used,
applied or invested as the General Assembly may direct in making any
such appropriation, or, in absence of specific direction, as the board
may determine; provided, however, that no obligation of the corpora-
tion shall be a debt of the state, and the corporation shall have no
power to make its debts payable out of any moneys except those of the
corporation.

(c)  To enter into contracts [with institutions of higher education,
upon such terms as may be agreed upon between the corporation and
any such institution,] upon such terms as to the board may seem
reasonable to provide for the creation or administration [by such
institutions] of any loan, or the guarantee of [a] any loan, made or
undertaken by the corporation, including applications therefor and
repayment thereof or otherwise facilitating the loan program estab-
lished under this article.

6.

No loan made or guaranteed by the corporation shall bear interest
at a rate in excess of six per cent per annum; [nor shall the corpora-
tion guarantee any loan which bears interest at a rate higher than
the then prevailing rate of interest up to a maximum of six per cent
per annum which the lender charges to other persons for similar type
loans which are not guaranteed by the corporation] and no interest
upon any loan made or guaranteed by the corporation shall be com-
pounded; however, interest upon any such loan may be accumulated.

7.

(a) Unless the board shall by rule or regulation otherwise provide,
t [T]he terms and conditions of any loan made or guaranteed by the
corporation shall not require the borrower thereof [to]:

(1)  To commence the repayment of his loan earlier than one year
following his completion or other termination of the college program
for which such loan was made or three months after he becomes
regularly employed or self-employed following such completion or
other termination of his college program or upon the expiration of
six years from the granting of the loan, whichever occurs first [.
Such a borrower shall not be required to]; or

(2)  To repay in full any such loan earlier than within four years