HARRY HUGHES, Governor

2647

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

(F) (1) 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 AND EDUCATION LOANS
AMONG PARTICIPATING INSTITUTIONS AND LENDING INSTITUTIONS.

(2) ANY PERSON WHO KNOWINGLY AND WILLFULLY FALSIFIES
OR CONCEALS A MATERIAL FACT IN CONNECTION WITH AN APPLICATION FOR
FUNDS FROM THE AUTHORITY IS GUILTY OF A MISDEMEANOR.

(3) EACH APPLICANT FOR FUNDS FROM THE AUTHORITY SHALL
RECEIVE NOTICE FROM THE AUTHORITY OF THE CONDUCT THAT CONSTITUTES
A VIOLATION OF THIS SECTION PRIOR TO THE AWARDING OF ANY LOAN.

(4) A PERSON CONVICTED UNDER THIS SECTION IS SUBJECT
TO A FINE OF NOT MORE THAN $5,000 OR IMPRISONMENT FOR NOT MORE
THAN 1 YEAR, OR BOTH.

(G)  THE AUTHORITY MAY:

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

(2)  FIX, REVISE, CHARGE AND COLLECT RATES, FEES AND
CHARGES FOR THE SERVICES FURNISHED OR TO BE FURNISHED BY THE
AUTHORITY AND CONTRACT WITH ANY PERSON, INCLUDING FINANCIAL
INSTITUTIONS, LOAN ORIGINATORS, SERVICERS, ADMINISTRATORS,
ISSUERS OF LETTERS OF CREDIT, AND INSURERS;

(3)  EMPLOY CONSULTANTS, ATTORNEYS, ACCOUNTANTS,
FINANCIAL EXPERTS, LOAN PROCESSORS, BANKERS, MANAGERS, AND OTHER
EMPLOYEES AND AGENTS AS MAY BE NECESSARY IN ITS JUDGMENT, AND FIX
THEIR COMPENSATION;

(4)  ESTABLISH REGULATIONS, CRITERIA OR GUIDELINES
WITH RESPECT TO AUTHORITY LOANS, EDUCATION LOANS AND EDUCATION
LOANS SERIES PORTFOLIOS;

(5)  RECEIVE AND ACCEPT FROM ANY SOURCE AND IN ANY
FORM, LOANS, APPROPRIATIONS, CONTRIBUTIONS, GIFTS, OR GRANTS FOR
OR IN AID OF ANY AUTHORITY PURPOSE OR EDUCATION LOAN FINANCING
PROGRAM AND, WHEN REQUIRED, USE THE FUNDS, PROPERTY OR LABOR ONLY
FOR THE PURPOSES FOR WHICH IT WAS PROVIDED;

(6)  MAKE AUTHORITY LOANS TO LENDING INSTITUTIONS AND
REQUIRE THAT THE PROCEEDS OF THE LOANS BE USED FOR MAKING
EDUCATION LOANS AND PAYING RELATED LOAN COSTS AND FEES;