(1) The division is hereby authorized to enter into contracts or other agreements
or both contracts and other agreements with private or public entities to make, originate,
disburse, or service guaranteed student loans, educational loans, and student loans. Such authorization includes but shall not be limited to the power to enter into
agreements with collegeinvest, established by part 2 of this article, to make, originate,
disburse, or service “institutional loans” and “student obligations” as those terms
are defined in section 23-3.1-202, whether or not such “institutional loans” and “student obligations” are eligible
for federal reinsurance as authorized by Title IV, Part B of the federal “Higher Education
Act of 1965”, as amended. 1
(2) The division may enter into contracts or other agreements or both contracts and
other agreements with private or public entities to guarantee or reinsure student
loans or educational loans which may include but not be limited to guaranteeing or
reinsuring the “institutional loans” or “student obligations” as those terms are defined
in section 23-3.1-202.
(3) No guarantee or reinsurance agreement made by the division pursuant to subsection
(2) of this section shall constitute or become an indebtedness, a debt, or a liability
of the state, nor shall such loan guarantee constitute the giving, pledging, or loaning
of the full faith and credit of the state.
(4) All income and interest thereon earned pursuant to the exercise of the power established
in subsections (1) and (2) of this section are continuously available and are hereby
appropriated to the division and may be used to pay the operating expenses thereof,
or a portion of such income or interest may be deposited into any applicable reserve
or guarantee account.
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