May 24, 2007, Introduced by Rep. Meisner and referred to the Committee on Appropriations.
A bill to amend 1975 PA 222, entitled
"Higher education loan authority act,"
by amending section 4 (MCL 390.1154), as amended by 1989 PA 127,
and by adding section 4b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. The authority shall have the powers necessary to carry
out and effectuate the purposes of this act, including, but not
limited to, the following powers:
(a) The power to sue and be sued; to have a seal and alter the
seal at pleasure; to have perpetual succession; to make, execute,
and deliver contracts, conveyances, bonds, and other instruments
necessary in the exercise of its powers; and to make and amend
bylaws.
(b) The power to accept gifts, grants, loans, and other aids
or amounts from a person, corporation, or governmental agency.
(c) The power to loan money to students and parents of
students for the purpose of assisting students in obtaining an
education beyond or in addition to obtaining a high school
education by attending an eligible institution, including
refinancing or consolidating borrower obligations previously
incurred by a student or parent of a student with other lending
sources for this purpose and participating in loans to students and
parents of students for this purpose with other lending sources.
(d) The power to enforce its rights under a contract or
agreement including the commencement of a court action.
(e) The power to acquire, hold, and dispose of real and
personal property necessary for the accomplishment of the purposes
of this act.
(f) The power to procure insurance against losses that may be
incurred in connection with its property, assets, activities, or
the exercise of the powers granted under this act.
(g) The power to borrow money and to issue its bonds and
provide for the rights of the holders of the bonds and to secure
the bonds by assignment, pledge, or granting a security interest in
its property including all or a part of a borrower obligation. The
state shall not be liable for the repayment of bonds issued by the
authority, the bonds issued by the authority shall not be a debt of
the state, and each bond shall contain on its face a statement to
this effect. The authority may, at its option, authorize the
issuance of bonds for the purposes described in section 5 that are
subject to federal income taxation, notwithstanding any
intergovernmental immunity from federal taxation under the
constitution of the United States for bonds of the authority, but
any waiver of intergovernmental immunity, expressed or implied in
this act, shall extend only to bonds specifically authorized by the
authority as bonds that are subject to federal income taxation.
(h) The power to invest funds not required for immediate use
or disbursement in obligations of the state or the United States,
in obligations the principal and interest of which are guaranteed
by the state or the United States, in United States government or
federal agency obligation repurchase agreements, in mutual funds
and common trust funds composed of investment vehicles that are
legal for direct investment by the authority, in bankers'
acceptances of United States banks, in certificates of deposit,
savings accounts, deposit accounts, or depository receipts of a
bank that is a member of the federal deposit insurance corporation
or a savings and loan association that is a member of the federal
savings and loan insurance corporation or a credit union that is
insured by the national credit union administration, or up to 50%
of the funds in commercial paper rated at the time of purchase
within the 3 highest rating classifications established by not less
than 2 standard rating services and that matures not more than 270
days after the date of purchase.
(i) Subject to a contract with the holders of its bonds, an
applicable bond resolution, or a contract with the recipient of a
loan, when the authority considers it necessary or desirable, the
power to consent to the modification, with respect to security,
rate of interest, time of payment of interest or principal, or
other term of a bond contract or agreement between the authority
and a recipient of a loan, bondholder, or agency or institution
guaranteeing the repayment of a borrower obligation.
(j) The power to engage the services of private consultants to
render professional and technical assistance and advice in carrying
out the purposes of this act.
(k) The power to appoint officers, agents, and employees,
describe their duties, and fix their compensation subject to rules
promulgated
by the state department of civil service.
(l) The power to solicit grants and contributions from a
government, or an agency of government, or from the public, and, at
its discretion, to arrange for the guaranteeing of the repayment of
borrower obligations by other agencies of the state or agencies of
the United States.
(m) The power to promulgate rules consistent with this act and
necessary to carry out the purpose of this act pursuant to the
administrative
procedures act of 1969, Act No. 306 of the Public
Acts
of 1969, as amended, being sections 24.201 to 24.328 of the
Michigan
Compiled Laws 1969 PA 306,
MCL 24.201 to 24.328.
(n) The power to collect fees and charges in connection with
its loans, commitments, and servicing, including reimbursement of
the costs of financing by the authority, service charges, and
insurance premiums the authority determines are reasonable and as
approved by the authority.
(o) The power to sell borrower obligations held by the
authority for a price and at a time and pursuant to other terms,
including undertakings or options to repurchase borrower
obligations, as the authority may determine, if the sale will not
impair the rights or interests of holders of bonds issued by the
authority.
(p) The power to participate in federal programs supporting
loans to eligible students and parents of students, and to agree to
and comply with the conditions of those programs.
(q) The power to purchase or otherwise acquire notes or debt
obligations evidencing loans to students or parents of students.
(r) The power to purchase, sell, or exchange borrower
obligations securing a series of bonds of the authority with, or
for the proceeds of, or the borrower obligations securing a
separate series of bonds of the authority, but only to the extent
permitted by the respective bond resolutions for the affected
series of bonds.
(s) The power to grant and pay money to the Michigan higher
education
assistance authority established by
Act No. 77 of the
Public
Acts of 1960, being sections 390.951 to 390.961 of the
Michigan
Compiled Laws 1960 PA 77, MCL
390.951 to 390.961, for its
loan guaranty fund whenever the authority determines the grant and
payment is necessary or beneficial in order to effectuate and carry
out the powers, duties, and functions of the authority under this
act.
(t) The power to enter into contracts with other authorities,
governmental agencies, private persons, firms, or corporations in
connection with any transaction relating to any indebtedness
incurred by the authority in the providing of funds for the
achievement of its purposes under this act.
(u)
Competitively The power to
competitively contract for
services including consulting services as needed to carry out the
purposes of this act.
(v) The power to grant and pay money to the Michigan merit
award trust fund established under section 9 of the Michigan trust
fund act, 2000 PA 489, MCL 12.259, for any scholarship or tuition
incentive program funded under section 10 of the Michigan trust
fund act, 2000 PA 489, MCL 12.260, whenever the authority
determines that the grant and payment are necessary or beneficial
in order to effectuate and carry out the powers, duties, and
functions of the authority under this act.
Sec. 4b. In addition to the powers enumerated in sections 4
and 4a, the authority has the power to transfer money to the
Michigan merit award trust fund established under section 9 of the
Michigan trust fund act, 2000 PA 489, MCL 12.259, for any
scholarship or tuition incentive program funded under section 10 of
the Michigan trust fund act, 2000 PA 489, MCL 12.260, at the times
and in the amounts the chairperson of the authority determines are
available for transfer. The authority shall make a transfer under
this section for the state fiscal year ending September 30, 2007 in
the amount the chairperson of the authority determines is
available.