2004 Minnesota Statutes

     136A.16 Powers and duties of office. 

    Subdivision 1.    Designation.  Notwithstanding chapter 
 16C, the Minnesota Higher Education Services Office is 
 designated as the administrative agency for carrying out the 
 purposes and terms of sections 136A.15 to 136A.1702.  The office 
 may establish one or more loan programs. 

    Subd. 2.    Rules.  The office shall adopt policies and 
 prescribe appropriate rules to carry out the purposes of 
 sections 136A.15 to 136A.1702.  The policies and rules except as 
 they relate to loans under section 136A.1701 must be compatible 
 with the provisions of the National Vocational Student Loan 
 Insurance Act of 1965 and the provisions of title IV of the 
 Higher Education Act of 1965, and any amendments thereof. 

    Subd. 3.    Loan amounts.  The office may make loans in 
 amounts not to exceed the maximum amount provided in the Higher 
 Education Act of 1965 and any amendments thereof except that the 
 limitation shall not apply to loans under section 136A.1701.  
 The office may establish procedures determining the loan amounts 
 for which students are eligible. 

    Subd. 4.    Lenders.  The office may contract with or 
 enter into agreements with eligible lenders for the purpose of 
 making loans to eligible students in accordance with the 
 policies and rules of the office. 

    Subd. 5.    Agencies.  The office may contract with 
 guarantee agencies, insurance agencies, collection agencies, or 
 any other person, to carry out the purposes of sections 136A.15 
 to 136A.1702. 

    Subd. 6.    Insurance.  The office shall be empowered to 
 charge for insurance on each loan a premium, payable each year 
 in advance. The premiums shall not be in an amount in excess of 
 the premium in the federal regulations which govern the 
 vocational and higher education loan program except that the 
 limitation shall not apply to loans under section 136A.1701.  
 Premium fees shall be available to the office without fiscal 
 year limitation for the purposes of making loans and meeting 
 expenses of administering the loan programs. 

    Subd. 7.    Funds.  The office may apply for, receive, 
 accept, and disburse federal funds, as well as funds from other 
 public and private sources, made available to the state for 
 loans or as administrative moneys to operate student loan 
 programs.  In making application for funds, it may comply with 
 all requirements of state and federal law and rules and 
 regulations, and enter into the contracts necessary to enable it 
 to receive, accept, and administer such funds. 

    Subd. 8.    Investment.  Money made available to the 
 office that is not immediately needed for the purposes of 
 sections 136A.15 to 136A.1702 may be invested by the office.  
 The money must be invested in bonds, certificates of 
 indebtedness, and other fixed income securities, except 
 preferred stocks, which are legal investments for the permanent 
 school fund.  The money may also be invested in prime quality 
 commercial paper that is eligible for investment in the state 
 employees retirement fund.  All interest and profits from such 
 investments inure to the benefit of the office or may be pledged 
 for security of bonds issued by the office or its predecessor, 
 the Minnesota Higher Education Coordinating Board. 

    Subd. 9.    Staff.  The office may employ the 
 professional and clerical staff the director deems necessary for 
 the proper administration of the loan programs established and 
 defined by sections 136A.15 to 136A.1702. 

    Subd. 10.    Director.  Subject to its directives and 
 review, the office may delegate to the director the 
 responsibility for issuance of public information concerning 
 provisions of sections 136A.15 to 136A.1702, for design of loan 
 application forms, and for prescribing procedures for submission 
 of applications for loans. 

    Subd. 11. Repealed, 1995 c 212 art 2 s 22 

    Subd. 12.    Records.  The office shall establish and 
 maintain appropriate accounting and related records. 

    Subd. 13.    Subject to suit.  The office may sue and be 
 sued. 

    Subd. 14.    Notes.  The office may sell at public or 
 private sale, at the price or prices determined by the office, 
 any note or other instrument or obligation evidencing or 
 securing a loan made by the office or its predecessor, the 
 Minnesota Higher Education Coordinating Board. 

    Subd. 15.    Letters of credit; surety.  The office may 
 obtain municipal bond insurance, letters of credit, surety 
 obligations, or similar agreements from financial institutions. 

    HIST: 1967 c 615 s 1; 1967 c 894 s 3; 1969 c 6 s 23; 1973 c 
 605 s 5,6; 1975 c 271 s 6; 1977 c 384 s 4-7; 1981 c 300 s 3-5; 
 1983 c 258 s 47; 1985 c 248 s 70; 1989 c 293 s 36-41; 1995 c 212 
 art 3 s 34,59; 1997 c 183 art 3 s 12-15; 1998 c 386 art 2 s 43