§ 16-62-4 - Creation.
SECTION 16-62-4
§ 16-62-4 Creation. – (a) There is authorized, created, and established a public corporation of thestate having a legal existence distinct from the state and not constituting adepartment of state government, which is a governmental agency and publicinstrumentality of the state, to be known as the "Rhode Island student loanauthority," with the powers that are set forth in this chapter, for thepurposes of financing education through the making, purchasing, taking,acquiring, or lending against the security of, eligible loans and educationloans and of selling eligible loans and education loans made, taken, endorsed,acquired, or purchased by it to governmental or private financial institutions.
(b) The exercise by the authority of the powers conferred bythis chapter shall be deemed and held to be the performance of an essentialgovernmental function of the state for public purposes. It is the intent of thegeneral assembly by the passage of this chapter to vest in the authority allpowers, authority, rights, privileges, and titles which may be necessary toenable it to accomplish the purposes set forth in this chapter, and thischapter and the powers granted by it shall be liberally construed in conformitywith those purposes.
(c) The authority and its corporate existence shall continueuntil terminated by law or until the authority shall cease entirely andcontinuously to conduct or be involved in any business in furtherance of itspurposes, provided that no termination shall take effect so long as theauthority shall have bonds, notes, or other obligations outstanding, unlessadequate provision shall have been made for their payment pursuant to thedocuments securing the bonds, notes, or other obligations or to the law. Upontermination of the existence of the authority, all its rights and propertiesshall pass to and be vested in the state. At no time shall the assets or otherproperty of the authority inure to the benefit of any person or othercorporation or entity.