An Act To Ensure the Availability of Supplemental Educational Loans
Maine Legislature, Session 124, LD 0856
Committee Amendment CA_A_S62 (Senate)
Amends: 20-A MRSA §11424

COMMITTEE AMENDMENT "A " 
to S.P. 325, L.D. 856, Bill, "An Act To Ensure 
the Availability of Supplemental Educational Loans" 
Amend the bill by striking out all of section 2 (page 1, lines 30 and 31 in L.D.) and 
inserting the following: 
'Sec. 2. 20-A MRSA §11424, sub-§6, as enacted by PL 1987, c. 807, §3, is 
amended to read: 
6. 
Bonds outstanding. 
The authority sfl.at.l. may not have at anyone time 
outstanding bonds to which subsection 5 is stated in the trust agreement or other 
document to apply in principal amount exceeding $50,000,000 $300,000,000. 
The 
amount of bonds issued to refund bonds previously issued shall may not be taken into 
account in determining the principal amount of the bonds outstanding, provided that as 
long as the proceeds of the refunding bonds are applied as promptly as possible to the 
refund ing of the previously issued bonds. In computing the total amount of bonds of the 
authority whlefl. that may at any time be outstanding for any purpose, the amount of the 
outstanding bonds that have been issued as capital appreciation bonds or as similar 
. instruments shall must be valued as of any date of calculation at their cu~ent accreted 
value rather than their face value. 
Sec. 3. 
Report of bond and loan activity. 
The Maine Educational Loan 
Authority shall submit a report to the Joint Standing Committee on Education and 
Cultural Affairs no later than April 2, 2010 summarizing the authority'S bond and loan 
activity from the effective date of this Act through March 15, 2010. The report must 
include an account of tax exempt bonds issued during this period with amounts and rates 
for each issue. The report must include an account of bonds issued prior to the effective 
date of this Act that have been refinanced, the change in interest rates for these bonds and 
the bond cap available as of March 15,2010. 
. 
The Maine Educational Loan Authority shall also report the rates on alternative loans 
originating after the effective date of this Act and changes in rates for loans outstanding 
on the effective date of this Act. The report must also include an account of any fees in 
excess of $50,000 paid to entities outside the authority.' 
COMMITTEE AMENDMENT 
~~~ 
COMMITIEE AMENDMENT .. A " 
to S.P. 325, L.D. 856 
SUMMARY 
This amendment increases the limit on the principal amount for certain types of 
bonds issued by the Maine Educational Loan Authority to $300,000,000. It requires the 
authority to report to the Joint Standing Committee on Education and Cultural Affairs no 
later than April 2, 2010 with an account of tax exempt bonds issued and student loan 
rates. 
FISCAL NOTE REQUIRED 
(See attacbed) 
COMMITTEE AMENDMENT 
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Approved: 04/07/09 Mac:.. 
LD856 
LR 1279(02) 
An Act To Ensure the Availability of Supplemental Educational Loans 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Potential contingent liability - General Fund 
Increasing the cap placed on the principal amount of a certain type of bond that the Maine Educational Loan Authority 
may have outstanding at one time expands the pledge of the moral obligation of the State for student loan bonds. 
LR1279(02) - Fiscal Note - Page 1 of 1