KRS § 164.748 — KY Code / Title XIII / Chapter 164 / Section 164.748
164.748 Powers and duties of board
Status: in_force

164.748 Powers and duties of board.

The board shall have the following powers, functions, and duties:

(1) To provide loan guarantees, upon terms and conditions the board may prescribe

within the limitations provided by KRS 164.740 to 164.770, and the federal act in

respect of loans to eligible borrowers. The board may require additional security,

including endorsers it deems necessary and desirable and is not in contravention of

the federal act. The purpose of the loans shall be to assist individuals in meeting the

expense of their education.

(2) To enter into agreements and undertakings with the secretary as may be required

and necessary pursuant to the federal act in order to constitute the authority as a

state agency qualified and empowered to insure student loans within the meaning of

the federal act and to qualify insured student loans for interest payments,

reimbursement, reinsurance, and other benefits available under the federal act to the

authority.

(3) To issue loan guarantees in respect of loans made to eligible borrowers by

participating lenders, including the authority. No loan guarantee shall be issued,

executed, and delivered by the authority unless any insured student loan resulting

shall be the subject of agreements pursuant to the federal act by which the insured

student loan is made the subject of interest payments, reimbursements, reinsurance,

and other benefits to the extent provided by the federal act.

(4) To promulgate administrative regulations pursuant to KRS Chapter 13A pertaining

to insured student loans, loan guarantees, loans, and work-study payments and the

awarding of grants, scholarships, and honorary scholarships, as provided in KRS

164.740 to 164.7891.

(5) To enter into contracts with eligible lenders, approved by the state to lend moneys,

upon terms and conditions agreed upon between the authority and the eligible

lender, to provide for the administration of student financial assistance programs,

including, but not by way of limitation, the authority's program of insured student

loans.

(6) To enter into contracts with eligible institutions, upon terms and conditions agreed

upon between the authority and the eligible institution, to provide for the

administration of student financial assistance programs, including, but not by way

of limitation, the authority's program of insured student loans.

(7) To receive funds from any source, public or private, by gift, grant, bequest, loan, or

otherwise, either absolutely or in trust, and to expend them, on behalf of the

authority and for any of its purposes; and to acquire from any source, public or

private, by purchase, lease, gift, bequest, or devise, any property, real, personal, or

mixed, absolutely or in trust, and to hold, administer, and dispose of it, on behalf of

the authority and for any of its purposes. The authority shall not make its debts

payable out of any funds except those of the authority.

(8) To administer federal funds allotted to the state in respect of insured student loans,

loan guarantees, loans, work-study, grants, scholarships, administrative costs, and

related matters.

(9) To sue and be sued in the name of the authority and to plead and be impleaded, and

to purchase, on behalf of members of the board or officers and employees of the

authority, liability insurance for individual protection from liability for acts and

omissions committed in the course and scope of the individual's employment or

service.

(10) To collect from individual borrowers loans made by the authority and insured

student loans on which the authority has been compelled to meet its loan guarantee

obligations following the inability of the participating lender involved to collect the

insured student loans.

(11) To gather information on all loans, scholarships, honorary scholarships, grants, and

work-study opportunities available to Kentucky residents attending or planning to

attend an eligible institution and to disseminate the information through the

methods of mass communication necessary to ensure that Kentucky residents are

aware of financial resources available to those attending or desiring to attend an

eligible institution.

(12) To request reports from each eligible institution or eligible lender necessary for the

effective performance of its duties and to publish the information it deems

necessary.

(13) To approve, disapprove, limit, suspend, or terminate the participation of, or take

emergency action to withhold authority funds and insured student loans from

eligible institutions or eligible lenders in programs administered by the board,

subject to the provisions of the federal act and this chapter.

(14) To perform other acts necessary or appropriate to carry out effectively the purposes

of the authority as provided by KRS 164.740 to 164.7891 and KRS 164A.010 to

164A.380.

(15) If any conflict exists between KRS 164.740 to 164.770 and the federal act, which

conflict would result in a loss by the authority of any federal funds, including, but

not by way of limitation, federal funds made available to the authority under the

federal act, including interest payments and reimbursement for insured student

loans in default, to promulgate regulations and policies consistent with the federal

act not in derogation of the Constitution and general laws of the Commonwealth.

(16) Except where specifically prohibited by law, to secure data from any other

Commonwealth of Kentucky agency or instrumentality or from any other source in

furtherance of any purposes of the authority related to any program or function

administered by the authority.

(17) To enter into contracts with public or private nonprofit agencies, eligible to hold or

insure student loans under the federal act, to provide for the exchange of

information, not in contravention of any federal or state law, or the provision of

services necessary to the administration of the authority's insured student loan

programs.

(18) To enter into contracts with the Kentucky Higher Education Student Loan

Corporation, the Kentucky Educational Savings Plan Trust, and the Commonwealth

postsecondary education prepaid tuition trust fund as necessary or appropriate to

facilitate their common administration, operation, and management, as required

pursuant to KRS Chapter 164A.

(19) To act as the board of directors of the Commonwealth postsecondary education

prepaid tuition trust fund under KRS 164A.700 to 164A.709.

(20) To conduct, in accordance with KRS Chapter 13B, administrative hearings

pertaining to any adverse action by the authority affecting participating institutions

and lenders, eligible students, and borrowers of loans made by the authority and

insured student loans guaranteed by the authority. Wage garnishment hearings and

administrative review procedures pertaining to disputes concerning setoff of federal

tax refunds shall be exempt under KRS 13B.020 and shall be conducted in

accordance with applicable federal law. In an exempt hearing, the board or a

hearing officer designated by the board may issue administrative subpoenas for the

attendance of witnesses and the production of documents relevant to the issues in

dispute. Compliance with the subpoenas shall be enforceable by a court of

competent jurisdiction.

(21) To provide upon termination of the retirement plan authorized by Executive Order

75-964 to active and retired employees of the authority who participated in that

plan, health insurance premiums and disability insurance benefits as provided to

employees who participate in a state-administered retirement system pursuant to

KRS 18A.225 to 18A.229, 61.600, and 61.702.

(22) To delegate to the executive director general supervision and direction over the

administrative function of the authority and its employees in carrying out the

policies, programs, administrative regulations, and directives of the board.