2648

LAWS OF MARYLAND

Ch. 704

(7)  MAKE EDUCATION LOANS TO BORROWERS AND REQUIRE
THAT THE PROCEEDS OF THE LOANS BE USED FOR THE PAYMENT OF THE
COST OF ATTENDANCE AT A PARTICIPATING INSTITUTION;

(8)  CHARGE TO AND APPORTION AMONG BORROWERS, LENDING
INSTITUTIONS AND PARTICIPATING INSTITUTIONS ITS ADMINISTRATIVE
AND OPERATING COSTS AND EXPENSES INCURRED IN THE EXERCISE OF ITS
POWERS AND DUTIES; AND

(9)  DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO
CARRY OUT ITS CORPORATE PURPOSES AND IN SUCH MANNER AND UPON SUCH
PROCEDURES AS THE AUTHORITY MAY IN ITS DISCRETION FROM TIME TO
TIME DETERMINE OR PRESCRIBE.

(H) NOTWITHSTANDING ANY OTHER PROVISION CONTAINED IN THIS
SUBTITLE, THE AUTHORITY MAY COMINGLE AND PLEDGE AS SECURITY FOR A
SERIES OR ISSUE OF BONDS:

(1)  THE EDUCATION LOANS TO BE MADE FROM THE PROCEEDS
OF SUCH ISSUE, INCLUDING THE EDUCATION LOAN SERIES PORTFOLIOS AND
SOME OR ALL FUTURE EDUCATION LOAN SERIES PORTFOLIOS OF THE
LENDING INSTITUTIONS; AND

(2)  THE LOAN FUNDING DEPOSITS OF LENDING INSTITUTIONS
OR PARTICIPATING INSTITUTIONS IF EDUCATION LOAN SERIES PORTFOLIOS
AND OTHER SECURITY AND MONEYS SET ASIDE IN ANY FUND OR FUNDS
PLEDGED FOR ANY SERIES OR ISSUE OF BONDS ARE HELD FOR THE SOLE
BENEFIT OF THE SERIES OR ISSUE SEPARATE AND APART FROM EDUCATION
LOAN SERIES PORTFOLIOS AND OTHER SECURITY AND MONEYS PLEDGED FOR
ANY OTHER SERIES OR ISSUE OF BONDS OF THE AUTHORITY.

(I) THE AUTHORITY MAY:

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

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

(J) THE AUTHORITY SHALL REQUIRE THAT:

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

(2)  PARTICIPATING 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.

31-107.

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