HOUSE BILL No. 4543


     April 8, 1997, Introduced by Reps. Baird, Wallace, Cherry, Mans, Dobronski, Wetters, Profit, McBryde, Johnson, McManus, Gire, Gilmer, Anthony, Gubow, Martinez, Freeman, Wojno, Prusi, Bogardus, DeHart, Goschka, Scott, Varga, LaForge, Willard, Brater and Hale and referred to the Committee on Colleges and Universities.


        A bill to amend 1975 PA 222, entitled

   "Higher education loan authority act,"

   by amending sections 2 and 4a (MCL 390.1152 and 390.1154a),

   section 2 as amended by 1987 PA 206 and section 4 as added by

   1989 PA 96.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2.  As used in this act:

 2         (a) "Authority" means the Michigan higher education student

 3    loan authority created by section 3.

 4         (b) "Bonds" means the bonds authorized to be issued by the

 5    authority under this act, which may consist of bonds, notes, term

 6    loans, commercial paper, or other debt obligations evidencing an

 7    obligation to repay borrowed money and payable solely from

 8    revenues and other money pledged by the authority.




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 1         (c) "Bond resolution" or "resolution", when used in relation

 2    to the issuance of bonds, means either the resolution or trust

 3    agreement securing the bonds.

 4         (d) "Eligible institution" means ANY OF THE FOLLOWING:  an 

 5         (i) AN institution of higher education  ; a  THAT IS IN COM-

 6    PLIANCE WITH THE MICHIGAN CAMPUS SEXUAL ASSAULT INFORMATION ACT.

 7         (ii) A vocational school.  ; or, with 

 8         (iii) WITH respect to students or their parents who are cit-

 9    izens or nationals of the United States, an institution outside

10    the United States comparable to an institution of higher educa-

11    tion or to a vocational school  which  THAT is approved by the

12    state board of education and by the United States secretary of

13    education for purposes of the guaranteed loan program.

14         (e) "National of the United States" means a person who,

15    though not a citizen of the United States, owes permanent alle-

16    giance to the United States, as defined in section  101(a)(22) 

17    101 of CHAPTER 477, 66 STAT. 163, POPULARLY KNOWN AS the immigra-

18    tion and nationality act, 8 U.S.C. 1101.

19         (f) "Obligations" or "borrower obligations" means loan notes

20    and other debt obligations evidencing loans to students or par-

21    ents of students  which  THAT the authority may take, acquire,

22    buy, sell, or indorse under this act and may include a direct or

23    indirect interest in whole or part of the notes or obligations.

24         (g) "Parent" means a biological or adoptive parent or legal

25    guardian.







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 1         (h) "Standard rating service" means a service recognized in

 2    the investment profession  which  THAT evaluates and measures

 3    securities investment and credit risk.

 4         (i) "Student" means a person who is enrolled or accepted for

 5    enrollment at an eligible institution and who is making suitable

 6    progress in his or her education toward obtaining a degree or

 7    other appropriate certification in accordance with standards

 8    acceptable to the authority.

 9         Sec. 4a.  In addition to the powers enumerated in section 4,

10    the authority may loan money to students or parents of students

11    who are residents of this state to assist them to pay for the

12    cost of the student's attendance at AN ELIGIBLE INSTITUTION THAT

13    IS a degree-granting college or university located in this

14    state.  The authority shall promulgate rules under the adminis-

15    trative procedures act of 1969,  Act No. 306 of the Public Acts

16     of 1969, being sections 24.201 to 24.328 of the Michigan Compiled

17     Laws  1969 PA 306, MCL 24.201 TO 24.328, to establish payment and

18    repayment terms for the loans authorized under this section.

19         Enacting section 1.  This amendatory act does not take

20    effect unless Senate Bill No. ________ or House Bill No. ________

21    (request no. 00715'97) of the 89th Legislature is enacted into

22    law.













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