HARRY HUGHES, Governor

3087

(I) THE AUTHORITY MAY:

(1)  EXAMINE RECORDS AND FINANCIAL REPORTS OF
PARTICIPATING INSTITUTIONS; AND

(2)  EXAMINE RECORDS AND FINANCIAL REPORTS OF ANY
CONTRACTOR ORGANIZATION OR FINANCIAL INSTITUTION RETAINED BY
THE AUTHORITY.

(J) THE AUTHORITY SHALL REQUIRE THAT:

(1)  AUTHORITY LOANS BE USED SOLELY TO MAKE
EDUCATION LOANS;

(2)  INSTITUTIONS REQUIRE EACH BORROWER UNDER AN
EDUCATION LOAN USE THE PROCEEDS SOLELY FOR THE COST OF
ATTENDANCE; AND

(3)  EACH BORROWER CERTIFY THAT PROCEEDS SHALL BE
USED SOLELY FOR THE COST OF ATTENDANCE.

18-1307. REFUNDING BOND PROCEEDS AND EXPENSES.

(A)  WHENEVER REFUNDING BONDS ARE ISSUED TO REFUND
BONDS, THE PROCEEDS OF WHICH WERE USED TO MAKE AUTHORITY
LOANS, THE AUTHORITY MAY REDUCE THE AMOUNT IT IS OWED BY THE
INSTITUTIONS WHICH HAD RECEIVED AUTHORITY LOANS FROM THE
PROCEEDS OF THE REFUNDED BONDS.

(B)  THE INSTITUTIONS MAY USE THIS REDUCED AMOUNT TO
REDUCE THE AMOUNT OF INTEREST BEING PAID ON EDUCATION LOANS
WHICH THE INSTITUTIONS HAD MADE PURSUANT TO THE AUTHORITY
LOANS FROM THE PROCEEDS OF THE REFUNDED BONDS.

(C)  ALL EXPENSES INCURRED IN CARRYING OUT THE
PROVISIONS OF THIS SECTION SHALL BE PAYABLE SOLELY FROM
FUNDS PROVIDED UNDER THE AUTHORITY OF THIS SECTION AND,
EXCEPT AS OTHERWISE PROVIDED, NO LIABILITY SHALL BE INCURRED
BY THE AUTHORITY BEYOND THE EXTENT TO WHICH MONEYS SHALL
HAVE BEEN PROVIDED UNDER THIS SECTION.

18-1308. LOAN FUNDING DEPOSITS.

(A) (1) THE AUTHORITY MAY ESTABLISH GUIDELINES
RELATING TO:

(I)  THE DEPOSITS OF CERTAIN MONEYS,
ENDOWMENTS, OR PROPERTIES BY INSTITUTIONS SO AS TO PROVIDE
REASONABLE SECURITY FOR EDUCATION LOANS LOAN FUNDING
PROGRAMS, AUTHORITY LOANS, EDUCATION LOANS, OR FOR BONDS;
AND

(II)  GUARANTEES OF OR CONTRACTS TO
PURCHASE EDUCATION LOANS OR BONDS BY THE INSTITUTIONS OR BY
FINANCIAL INSTITUTIONS OR OTHERS.