An Act To Further Facilitate the Provision of Educational Loans for Maine Students and Families
Maine Legislature, Session 124, LD 0118
Committee: Education and Cultural Affairs
Sponsors: BOWMAN, SUTHERLAND, STRANG BURGESS
Amends: 20-A MRSA §11496-A

MAINE STATE LEGISLATURE 
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124th MAINE LEGIS 
SJATE LAW UEl1AFrr 
AHGVSTA, MAINE 
ATURE 
FIRST PJ:GUL).,..R SESSION-2009 
Legislative Document 
No.lI8 
S.P.40 
January 13,2009' 
An Act To Further Facilitate the Provision of Educational Loans for 
Maine Students and Families 
(EMERGENCy) 
Submitted by the Finance Authority of Maine pursuant to Joint Rule 204. 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
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Presented by Senator BOWMAN of York. 
Cosponsored by Representative SUTHERLAND of Chapman and 
Representative: STRANG BURGESS of Cumberland. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, there has been unprecedented turbulence in the capital markets that has 
made it necessary to replace existing auction rate bond financing for federally guaranteed 
student loans with financing supported by a capital reserve fund; and 
Whereas, if financing supported by a capital reserve fund cannot be made available, 
the availability, rates and terms of federally guaranteed student loans to Maine borrowers 
may be adversely affected, resulting in increased costs to students and families or even 
unavailability of federally guaranteed student loans; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People ofthe State of Maine as follows: 
Sec. 1. 20-A MRSA §11496-A, sub-§l, as enacted by PL 2007, c. 665, §l, is 
amended to read: 
1. Capital reserve fund. The authority may create and establish one or more capital 
reserve funds and may pay into any capital reserve fund any money appropriated and 
made available by the State for the purposes of any such fund, any proceeds of the sale by 
the authority of bonds to the extent determined by the authority and any other money 
available to the authority. The authority may not create or establish any capital reserve 
fund under this subsection after June 30, ;wQ9 2010. 
Sec. 2. 20-A MRSA §11496-A, sub-§3, ~A, as enacted by PL 2007, c. 665, §1, 
is amended to read: 
A. The amount stated in the applicable trust agreement or other document used to 
establish the capital reserve fund, with respect to any capital reserve fund established 
before June 30,;wQ9 2010; or 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SU~Y 
This bill extends the date after which the Finance Authority of Maine may not create 
or establish any capital reserve fund for the provision of educational loans for Maine 
students and families from June 30, 2009 to June 30, 2010. 
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