The Florida Senate

1009.9994  State Board of Administration authority to borrow and lend funds to finance student loans; conditions and limitations.--

(1)  The State of Florida, acting through the State Board of Administration, is authorized to borrow funds to finance student loans and to lend such funds to eligible lenders described under the provisions of the Higher Education Act of 1965 (20 U.S.C. ss. 1071 et seq.), as amended or as may be amended, or other federal laws providing for the guarantee of loans to students and the partial payment of interest on such loans by the United States Government.

(2)  In order to obtain such funds, the State of Florida, acting through the State Board of Administration, is authorized to enter into loan agreements and interlocal agreements with any county, municipality, special district, or other local governmental body. Such agreements shall be for such periods and under such terms and conditions as may be mutually agreed upon by the parties thereto in order to carry out the purposes of s. 15, Art. VII of the State Constitution. The loans shall be repaid only from the proceeds received under loan agreements with eligible lenders or from the proceeds received from the repayment of the student loans. Such agreements shall provide that the loans to the state will not constitute a general or moral obligation or a pledge of the faith and credit or the taxing power of the state.

(3)  The State of Florida, acting through the State Board of Administration, is further authorized to enter into loan agreements or other contracts under which the state will loan the funds obtained from the local governments to eligible lenders as defined in s. 435(g)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. ss. 1071 et seq.), as amended or as may be amended, or other federal laws providing for the guarantee of loans to students and the partial payment of interest on such loans by the United States Government. Such agreements or contracts shall be for such periods and under such terms and conditions as may be mutually agreed upon by the parties thereto in order to carry out the purposes of s. 15, Art. VII of the State Constitution. Higher Education Loan Program of Florida, Inc., a Florida nonprofit corporation, is hereby designated an eligible lender hereunder, and any other lender, to the extent permitted under s. 435(g)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. ss. 1071 et seq.), as amended or as may be amended, or other federal laws providing for the guarantee of loans to students and the partial payment of interest on such loans by the United States Government, may be designated by the Governor, with the concurrence of the State Board of Administration, as an eligible lender hereunder.

(4)  The State of Florida, acting through the State Board of Administration, is further authorized to enter into such further contracts and to take such further actions as may be necessary or convenient in order to carry out the purposes of this section.

(5)  Notice shall be published in a newspaper of general circulation within the territorial jurisdiction of the governmental body following adoption by the local governmental body of a resolution authorizing a loan agreement or interlocal agreement under this section. An action or proceeding to contest the validity of any such loan agreement or interlocal agreement must be commenced within 30 days after publication of such notice.

(6)  The provisions of this section shall be liberally construed in order to effectively carry out its purposes. This section shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.

History.--s. 522, ch. 2002-387.