There shall be established and maintained by the authority a fund which shall be designated the "State Education Assistance Authority Loan Fund". There shall be deposited to the credit of the loan fund the proceeds, exclusive of accrued interest, derived from the sale of the revenue bonds of the authority and any other moneys made available to the authority for making student loans.
There also may be deposited in the loan fund the "spread" or difference between the average rate of interest paid by the authority on its revenue bonds and the interest received by the authority on student loans as well as any state appropriated funds or other funds made available for administration of the loan program authorized herein.
Moneys in the loan fund shall be used only for the following purposes:
(a) To make direct loans to students.
(b) To make loans to any not-for-profit corporate entity approved by the authority for the purpose of enabling the entity to make student loans on terms and under conditions approved by the authority.
(c) To defray the expenses of operation and administration of the authority and its programs for which other funds are not available to the authority.
(d) To remedy any deficiency in the loan guarantee reserve fund.
(e) To remedy any deficiency in the sinking fund.
Pending the use of moneys in the loan fund for any of its authorized purposes the moneys shall be invested and reinvested by the State Treasurer. All earnings from the investments shall be added to and become a part of the loan fund.
HISTORY: 1962 Code Section 22-96.5; 1971 (57) 775; 1978 Act No. 474, Section 5.
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