An Act To Amend the Laws Governing the Capital Reserve Funds of the Maine Educational Loan 1 Authority
Maine Legislature, Session 125, LD 0066
Committee Amendment CA_A_H149 (House)
Amends: 20-A MRSA §11424

COMMITTEE AMENDMENT" A" to H.P. 54, L.D. 66, Bill, "An Act To Amend 
the Laws Governing the Capital Reserve Funds of the Maine Educational Loan 
1 
Authority" 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 20-A MRSA §11424, sub-§l, as amended by PL 2009, c. 40, §1, is 
further amended to read: 
1. Capital reserve fund. The authority may create and establish one or more capital 
reserve funds and may pay into any such 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 section after June 30, ~ 
2017. 
Sec. 2. 20-A MRS A §11424, sub-§6, as amended by PL 2009, c. 40, §3, is 
further amended to read: 
6. Bonds outstanding. The authority 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 $300,000,000 $225,000,000. The amount of bonds issued to 
refund bonds previously issued may not be taken into account in determining the 
principal amount of the bonds outstanding, as long as the proceeds of the refunding bonds 
are applied as promptly as possible to the refunding of the previously issued bonds. In 
computing the total amount of bonds of the authority 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 must be valued as of any date of calculation 
at their current accreted value rather than their face value.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A ,. to H.P. 54, L.D. 66 
SUMMARY 
This amendment strikes the bill and replaces it to extend the termination date for the 
Maine Educational Loan Authority's authority to create or establish capital reserve funds 
to June 30, 2017. The amendment also decreases the limit on the principal amount for 
certain types of bonds issued by the Maine Educational Loan Authority to $225,000,000. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/08111 
;:tf;Yac. 
LD66 
LR 795(02) 
An Act To Amend the Laws Governing the Capital Reserve Funds of the Maine Educational Loan 
Authority 
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 
Decreasing the cap placed on the principal amount of bonds that the Maine Educational Loan Authority may have 
outstanding at one time reduces the pledge of the moral obligation of the state for student loan bonds. However, 
extending the timeframe that the Authority has to create or establish a capital reserve fund from June 30, 2011 to June 
30, 2017 will extend the State's moral obligation for student loan bonds beyond June 30, 2011. 
LR0795(02) - Fiscal Note - Page 1 of 1