261A.7 - DUTIES OF AUTHORITY.
261A.7 DUTIES OF AUTHORITY.
The authority shall:
1. Adopt rules for the regulation of its affairs and the conduct
of its business.
2. Adopt an official seal and alter the seal at pleasure.
3. Maintain an office at a place or places it designates.
4. a. Establish criteria for and guidelines encompassing the
types of and qualifications for education loan financing programs.
The authority may issue obligations for the purpose of making
authority loans to institutions participating in a program of the
authority for the purpose of providing education loans. The criteria
and guidelines established by the authority for its education loan
financing programs include eligibility standards for borrowers the
authority determines are necessary or desirable in order to
effectuate the purposes of this chapter, including the following:
(1) Each student shall have a certificate of admission or
enrollment at a specific participating institution.
(2) Each student or the student's parents shall satisfy financial
qualifications the authority establishes to effectuate the purposes
of this chapter.
(3) Each student and the student's parents shall submit
information required by the authority to the applicable institution.
b. The authority may contract with financial institutions and
other qualified loan origination and servicing organizations, which
shall assist in prequalifying borrowers for education loans and which
shall service and administer each education loan and each
institution's respective loan series portfolio. Each education
loan's fees shall include a portion, if necessary, to cover the
applicable pro rata cost of a servicing organization.
c. The authority may establish criteria governing the
eligibility of institutions to participate in its programs, the
making of authority loans and education loans, provisions for
default, the establishment of default reserve funds, the purchase of
default insurance, the provision of prudent debt service reserves,
and the furnishing by participating institutions of higher education
of additional guarantees of the education loans, authority loans, or
obligations that the authority determines necessary. Criteria shall
be established to assure the marketability of the obligations and the
adequacy of the security for the obligations.
d. The authority shall establish limitations upon the
principal amounts and the terms of education loans, criteria
regarding the qualifications and characteristics of borrowers and
procedures for allocating authority loans among institutions eligible
for its program in order to effectuate the purposes of this chapter.
5. Issue obligations for its corporate purposes and fund or
refund the obligations as provided in this chapter.
6. Fix and revise from time to time and charge and collect rates,
fees, and charges for the services furnished or to be furnished by
the authority, and contract with persons in respect to the services,
including financial institutions, loan originators, servicers,
administrators, issuers of letters of credit, and insurers.
7. Establish rules under chapter 17A with respect to authority
loans, education loans, and education loan series portfolios.
8. Receive and accept from any source, loans, contributions or
grants for or in aid of an authority education loan financing program
or any portion of a program and, when required, use the funds,
property, or labor only for the purposes for which it was loaned,
contributed, or granted.
9. Make authority loans to institutions and require that the
proceeds of the authority loans be used for making education loans
and paying costs and fees in connection with the education loans.
10. Charge to and apportion among participating institutions its
administrative and operating costs and expenses incurred in the
exercise of its powers and duties.
11. Borrow working capital funds and other funds as necessary for
start-up and continuing operations, provided that the funds are
borrowed in the name of the authority only. Borrowings are limited
obligations of the character described in section 261A.12 and are
payable solely from revenues of the authority or the proceeds of
obligations pledged for that purpose.
12. Notwithstanding other provisions in this chapter, commingle
and pledge as security for a series or issue of obligations, with the
consent of all of the institutions which are participating in the
series or issue, the education loan series portfolios and some or all
future education loan series portfolios of the institutions, and the
loan funding deposits of the institutions. However, the education
loan series portfolios and other security and moneys set aside in a
fund or funds pledged for a series or issue of obligations shall be
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 obligations. Obligations
may be issued in series under one or more resolutions or trust
agreements in the discretion of the authority.
13. Examine records and financial reports of participating
institutions, and examine records and financial reports of a
contractor organization or institution retained by the authority.
14. Require that authority loans be used solely to make education
loans. The authority shall require that institutions require that
each borrower under an education loan use the proceeds solely for the
cost of attendance and that each borrower certify as to the use of
the proceeds.
15. Authorize its officers, agents, and employees to take any
other action and do all things necessary or desirable in order to
carry out the purposes of this chapter. Section History: Early Form
[82 Acts, ch 1031, § 7] Section History: Recent Form
2009 Acts, ch 41, §263
Referred to in § 261A.24