261.38 - LOAN RESERVE AND AGENCY OPERATING ACCOUNTS.
261.38 LOAN RESERVE AND AGENCY OPERATING ACCOUNTS.
1. The commission shall establish a loan reserve account and an
agency operating account as authorized by the federal Higher
Education Act of 1965. The commission shall credit to these accounts
all moneys provided for the state student loan program by the United
States, the state of Iowa, or any of their agencies, departments or
instrumentalities, as well as any funds accruing to the program which
are not required for current administrative expenses. The commission
may expend moneys in the loan reserve and agency operating accounts
as authorized by the federal Higher Education Act of 1965.
2. The payment of any funds for the default on a guaranteed
student loan shall be solely from the loan reserve and agency
operating accounts. The general assembly shall not be obligated to
appropriate any moneys to pay for any defaults or to appropriate any
moneys to be credited to the loan reserve account. The commission
shall not give or lend the credit of the state of Iowa.
3. Notwithstanding section 8.33, funds on deposit in the loan
reserve and operating accounts shall not revert to the state general
fund at the close of any fiscal year.
4. The treasurer of state shall invest any funds, including those
in the loan reserve and operating accounts, and, notwithstanding
section 12C.7, the interest income earned shall be credited back to
the appropriate account.
5. The commission may enter into agreements with the Iowa student
loan liquidity corporation in order to increase access for students
to education loan programs that the commission determines meet the
education needs of Iowa residents. The agreements shall permit the
establishment, funding, and operation of alternative education loan
programs, as described in section 144(b)(1)(B) of the Internal
Revenue Code of 1986 as amended, as defined in section 422.3, in
addition to programs permitted under the federal Higher Education Act
of 1965. In accordance with those agreements, the Iowa student loan
liquidity corporation may issue bonds, notes, or other obligations to
the public and others for the purpose of funding the alternative
education loan programs. This authority to issue bonds, notes, or
other obligations shall be in addition to the authority established
in the articles of incorporation and bylaws of the Iowa student loan
liquidity corporation.
Bonds, notes, or other obligations issued by the Iowa student loan
liquidity corporation are not an obligation of this state or any
political subdivision of this state within the meaning of any
constitutional or statutory debt limitations, but are special
obligations of the Iowa student loan liquidity corporation, and the
corporation shall not pledge the credit or taxing power of this state
or any political subdivision of this state, or make its debts payable
out of any of the moneys except those of the corporation. Section History: Early Form
[C71, 73, 75, 77, § 261.5, 261.8; C79, 81, § 261.38] Section History: Recent Form
86 Acts, ch 1246, § 26, 27; 89 Acts, ch 300, § 7; 90 Acts, ch
1253, § 122; 91 Acts, ch 180, §4, 5; 92 Acts, ch 1246, §31; 99 Acts,
ch 205, §33--37
Referred to in § 261.37