HARRY HUGHES, Governor

3085

PURPOSES OF THIS SUBTITLE AND WHICH SHALL INCLUDE PROVISIONS
THAT EACH STUDENT HAVE A CERTIFICATE OF ADMISSION OR
ENROLLMENT AT A SPECIFIC PARTICIPATING INSTITUTION, THAT
EACH STUDENT OR STUDENT'S PARENTS SATISFY THE FINANCIAL
QUALIFICATIONS THAT THE AUTHORITY ESTABLISHES AND THAT EACH
STUDENT AND EACH STUDENT'S PARENTS SUBMIT TO THE
PARTICIPATING INSTITUTION INFORMATION THAT MAY BE REQUIRED
BY THE AUTHORITY.

(D)  THE AUTHORITY MAY CONTRACT WITH FINANCIAL
INSTITUTIONS AND OTHER QUALIFIED LOAN ORIGINATION AND
SERVICING ORGANIZATIONS TO PROVIDE ASSISTANCE IN
PREQUALIFYING BORROWERS FOR EDUCATION LOANS AND FOR
SERVICING AND ADMINISTERING EDUCATION LOANS AND ANY
PARTICIPATING INSTITUTION'S RESPECTIVE LOAN SERIES
PORTFOLIO. ANY EDUCATION LOAN FEE MAY INCLUDE A PORTION TO
COVER THE COST OF ANY SERVICING ORGANIZATION'S ASSISTANCE
PRORATED ON A BASIS DEEMED FAIR BY THE AUTHORITY.

(E)  TO INSURE THE MARKETABILITY OF ITS BONDS AND THE
ADEQUACY OF THE SECURITY FOR THE PAYMENT OF THE PRINCIPAL OF
AND INTEREST ON ITS BONDS, THE AUTHORITY MAY ESTABLISH
CRITERIA GOVERNING:

(1) THE ELIGIBILITY OF INSTITUTIONS TO
PARTICIPATE IN ITS PROGRAM;

LOANS;

(2)  THE MAKING OF AUTHORITY LOANS AND EDUCATION

(3)  PROVISIONS FOR DEFAULT;

(4)  THE ESTABLISHMENT OF DEFAULT RESERVE FUNDS;

(5)  THE PURCHASE OF DEFAULT INSURANCE; AND

(6)  PROVISION FOR THE ESTABLISHMENT OF PRUDENT
DEBT SERVICE RESERVES AND FOR THE FURNISHING BY
PARTICIPATING INSTITUTIONS OF SUCH ADDITIONAL GUARANTEES OF
OR OTHER SECURITY FOR EDUCATION LOANS, AUTHORITY LOANS, OR
THE AUTHORITY'S BONDS.

(F)  THE AUTHORITY MAY ESTABLISH LIMITATIONS ON THE
PRINCIPAL AMOUNTS AND THE TERMS OF EDUCATION LOANS, CRITERIA
REGARDING THE QUALIFICATIONS AND CHARACTERISTICS OF
BORROWERS AND PROCEDURES FOR ALLOCATING AUTHORITY LOANS
AMONG PARTICIPATING INSTITUTIONS.

(G)  THE AUTHORITY MAY:

(1) ISSUE BONDS FOR ANY OF ITS CORPORATE
PURPOSES AND BORROW FUNDS AS WORKING CAPITAL FOR ITS
OPERATIONS;