The Florida Senate

¹240.474  Functions and powers of authority.--Each authority shall have the following functions and powers:

(1)  To adopt rules for the regulation of its affairs and the conduct of its business.

(2)  To adopt an official seal.

(3)  To maintain an office at a place it designates.

(4)  To sue and be sued in its own name and to plead and be impleaded.

(5)  To establish rules for the use of education loan financing programs and to designate a participating institution as its agent to establish rules for the use of a program undertaken by such participating institution.

(6)  To issue obligations for the purpose of making authority loans to participating institutions for the purpose of providing education loans utilizing such eligibility standards for borrowers as the authority determines to be necessary, but such standards shall include the following:

(a)  Each student shall have a certificate of admission or enrollment at a participating institution;

(b)  Each student or his or her parents shall satisfy such financial qualifications as the authority shall establish; and

(c)  Each student and his or her parents shall submit such information to the applicable institution as may be required by the authority.

(7)  To contract with financial institutions and other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for education loans and which shall service and administer each education loan and the respective loan series portfolio of each institution, and to establish sufficient fees for each educational loan to cover the applicable pro rata cost of such servicing and originating organizations.

(8)  To establish criteria governing the eligibility of institutions to participate in its programs, the making and allocation of authority loans and education loans, provisions for default, the establishment of default reserve funds, the purchase of default insurance, the provision of prudent debt service reserves, and the furnishing by participating institutions of such additional guarantees of the education loans, authority loans, or obligations as the authority shall determine necessary to assure the marketability of the obligations and the adequacy of the security therefor; however, the provisions applicable to participation by Florida public participating institutions in the financing programs of the authority shall be subject to approval and authorization by the budgetary and other state agencies having jurisdiction over those institutions.

(9)  To fix, revise, charge, and collect rates, fees, and charges for services furnished by the authority and to contract with any person in respect thereto, including any financial institution, loan originator, servicer, administrator, issuer of letters of credit, or insurer.

(10)  To employ consultants, attorneys, accountants, financial experts, loan processors, bankers, managers, and such other employees and agents as may be necessary and to fix their compensation.

(11)  To receive and accept, from any source, loans, contributions, or grants for or in aid of an authority education loan financing program or any portion thereof and, when required, to use such funds, property, or labor only for the purposes for which it was loaned, contributed, or granted.

(12)  To make authority loans to institutions and require that the proceeds thereof be used solely for making education loans or for costs and fees in connection therewith and to require institutions to obtain certification from each borrower that proceeds from any education loan are used solely for the purpose intended by this act.

(13)  To charge to and apportion among participating institutions administrative and operating costs and expenses incurred in the exercise of the powers and duties conferred by this act.

(14)  To borrow working capital funds and other funds as may be necessary for startup and continuing operations, provided that such funds are borrowed solely in the name of the authority. Such borrowings shall be limited obligations of the character described in s. 240.479 and shall be payable solely from revenues of the authority or proceeds of obligations pledged for that purpose.

(15)  Notwithstanding any other provisions of this act, to commingle and pledge as security for a series or issue of obligations, with the consent of all of the institutions which are participating in such series or issue:

(a)  The education loan series portfolios and some or all future education loan series portfolios of such institutions; and

(b)  The loan funding deposits of such institutions, except that education loan series portfolios and other security and moneys set aside in any fund pledged for any series or issue of obligations shall be held for the sole benefit of such series or issue separate and apart from education loan series portfolios and other security and moneys pledged for any other series of issue of obligations of the authority. Obligations may be issued in series under one or more resolutions or trust agreements in the discretion of the authority.

(16)  To examine records and financial reports of participating institutions and to examine records and financial reports of any contractor organization or institution retained by the authority under the provisions of this act.

(17)  To make loans to a participating institution to refund outstanding obligations, mortgages, or advances issued, made, or given by such institution for authority loans; and whenever such refunding obligations are issued to refund obligations, the proceeds of which were used to make authority loans, the authority may reduce the amount of interest owed to it by the institution which had received authority loans from the proceeds of the refunded obligations. Such institution may use this reduced amount to reduce the amount of interest being paid on education loans which the institution had made pursuant to the authority loans from the proceeds of the refunded obligations.

(18)  To authorize its officers, agents, and employees to take any other action which is necessary in order to carry out the purposes of this act.

History.--s. 5, ch. 82-241; s. 67, ch. 95-148; s. 3(7), ch. 2000-321.

¹Note.--Repealed January 7, 2003, by s. 3(7), ch. 2000-321, and shall be reviewed by the Legislature prior to that date.