(1) The corporation may provide for the issuance, at one (1) time or from time to time, of not exceeding five billion dollars ($5,000,000,000) in bonds of the corporation to carry out and effectuate its corporate purposes and powers. In anticipation of the issuance of bonds, the corporation may provide for the issuance, at one (1) time or from time to time, of bond anticipation notes. The principal of and the interest on bonds or notes shall be payable solely from the funds provided for payment. Any notes may be made payable from the proceeds of bonds or renewal notes or, if bond or renewal note proceeds are not available, notes may be paid from any available revenues or assets of the corporation. The bonds or notes of each issue shall be dated and may be made redeemable before maturity at the option of the corporation at the price or prices and under the terms and conditions determined by the corporation. Any bonds or notes shall bear interest at a rate or rates determined by the corporation. Notes shall mature at a time or times not exceeding five (5) years from their date or dates and bonds shall mature at a time or times not exceeding thirty (30) years from their date or dates, as determined by the corporation. The corporation shall determine the form and manner of execution of the bonds or notes, including any interest coupons to be attached, and shall fix the denomination or denominations and the place or places of payment of principal and interest, which may be any bank or trust company within or without the state. If any officer whose signature or a facsimile of whose signature appears on any bonds or notes or coupons attached to them shall cease to be an officer before the delivery of the bonds or notes, the signature or facsimile shall be valid and sufficient for all purposes as if he had remained in office until the delivery. The corporation may also provide for the authentication of the bonds or notes by a trustee or fiscal agent. The bonds or notes may be issued in coupon or in registered form, or both, as the corporation may determine, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes. Upon the approval of a resolution of the corporation authorizing the sale of its bonds or notes, the bonds or notes may be sold in a manner, either at public or private sale, and for a price the corporation shall determine to be for the best interest of the corporation and best effectuate the purposes of this chapter if the sale is approved by the corporation.
(2) The proceeds of any bonds or notes shall be used solely for the purposes for which they are issued and shall be disbursed in a manner and under restrictions, if any, the corporation may provide in the resolution authorizing the issuance of bonds or notes or in the trust agreement securing the bonds or notes. The principal of and interest on any bonds issued by the corporation shall be payable only from the proceeds derived by the corporation from insured student loans made and purchased from the proceeds of the bonds.
(3) (a) Prior to the issuance of any bonds or notes that are not secured by the
repayment of student loans at least ninety-five percent (95%) insured by the guarantee agency and reinsured by the United States of America, the corporation shall obtain approval of the issuance from the General Assembly in accordance with the provisions of KRS § 56.870(1). This requirement shall not apply to refunding bond or note issues which are for the purpose of achieving debt service savings and which do not extend the term of the refunded bond or note.
(b) Notwithstanding paragraph (a) of this subsection, if during the interim of sessions of the General Assembly, the federal act is amended to reduce to less than ninety-five percent (95%) the maximum rate of insurance payable by the guarantee agency or reinsurance payable by the Secretary of Education of the United States on insured student loans, upon notification by the corporation to the Legislative Research Commission of the change in the federal act, the corporation may, until the adjournment of the next even-numbered-year regular session of the General Assembly, issue bonds or notes for student loans insured by the guarantee agency and reinsured by the Secretary of Education of the United States to the maximum extent permitted by the federal act.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 161, sec. 1, effective June 20, 2005. — Amended
2002 Ky. Acts ch. 6, sec. 1, effective July 15, 2002. — Amended 2001 Ky. Acts ch.
58, sec. 30, effective June 21, 2001. — Amended 2000 Ky. Acts ch. 52, sec. 1, effective July 14, 2000. — Amended 1996 Ky. Acts ch. 350, sec. 8, effective July 15,
1996. — Amended 1994 Ky. Acts ch. 35, sec. 2, effective March 8, 1994; and ch. 53, sec. 3, effective July 15, 1994. — Amended 1984 Ky. Acts ch. 314, sec. 1, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 179, sec. 1, effective April 1, 1982. — Amended 1980 Ky. Acts ch. 124, sec. 1, effective April 3, 1980. — Created 1978 Ky. Acts ch. 387, sec. 8, effective June 17, 1978.
Legislative Research Commission Note (7/15/94). This section was amended by 1994
Ky. Acts chs. 35 and 53. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 53, which was last enacted by the General Assembly, prevails under KRS § 446.250.