164A.050 Kentucky Higher Education Student Loan Corporation -- Establishment
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/ky/164a-050A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
-- Organization -- Terms -- Duties -- Removal -- Expenses -- Relationship with
other educational entities.
(1)There is hereby created and established an independent de jure municipal
corporation and political subdivision of the Commonwealth of Kentucky which
shall be a body corporate and politic to be known and identified as the Kentucky
Higher Education Student Loan Corporation.
(2)The Kentucky Higher Education Student Loan Corporation is created and
established as an independent de jure municipal corporation and political
subdivision of the Commonwealth of Kentucky to perform essential governmental
and public functions and purposes in improving and otherwise promoting the
educational opportunities of the citizens and inhabitants of the Commonwealth of
Kentucky and other qualified students by a program of financing, making, and
purchasing of student loans.
(a)The corporation shall be governed by a board of directors consisting of:
1. Ten
(10)voting members of the board of directors of the Kentucky
Higher Education Assistance Authority appointed by the Governor
pursuant to KRS 164.746(1)(a), who shall serve terms of office on the
corporation board coextensive with their respective terms of office on
the Kentucky Higher Education Assistance Authority board; and
2. The secretary of the Finance and Administration Cabinet, or a designee
who shall be another official of the same cabinet, who shall serve as an
ex officio voting member.
(b)The president of the Council on Postsecondary Education, the president of the
Association of Independent Kentucky Colleges and Universities, the State
Treasurer, and the commissioner of education, or their designees who shall be
another official of the same cabinet or agency, shall serve as ex officio
nonvoting advisors to the board.
(4)The Governor shall appoint directors according to subsection (3)(a)1. of this section
from nominees submitted by the Governor's Postsecondary Education Nominating
Committee under KRS 164.005 to take office and to exercise all powers thereof
immediately. The terms shall be staggered and shall be for a period of four
(4)years
each. Each director shall serve for the appointed term and shall serve until a
successor has been appointed and has duly qualified.
(5)In the event of a vacancy, the Governor may appoint a replacement director from
nominees submitted by the Governor's Postsecondary Education Nominating
Committee under KRS 164.005 who shall hold office during the remainder of the
term so vacated.
(6)The Governor may remove any director from the general public in case of
incompetency, neglect of duties, gross immorality, or malfeasance in office; and
may thereupon declare such office vacant and may appoint a person to fill such
vacancy as provided in other cases of vacancy.
(7)The board shall elect from its voting membership a chair, chair-elect, and secretary-
treasurer. The executive director of the Kentucky Higher Education Assistance
Authority shall serve as executive director of the corporation.
(8)The executive director shall administer, manage, and direct the affairs and business
of the corporation, subject to the policies, control, and direction of the board of the
corporation. The secretary-treasurer of the corporation shall keep a record of the
proceedings of the corporation and shall be custodian of all books, documents, and
papers filed with the corporation, the minute book or journal of the corporation, and
its official seal. The secretary-treasurer may copy all minutes and other records and
documents of the corporation and give certificates under the official seal of the
corporation to the effect that such copies are true copies and all persons dealing
with the corporation may rely upon such certificates.
(9)A majority of the board of the corporation shall constitute a quorum for the purpose
of conducting its business and exercising its powers and for all other purposes
notwithstanding the existence of any vacancies on the board.
(10)Official actions may be taken by the corporation at meetings duly called by the
chair upon three
(3)days' written notice to each director or upon the concurrence of
at least a majority of the directors. In lieu of personal attendance by members of the
board at the same location, the board may conduct meetings by teleconference or
other available technological means suitable for conducting its business. Meetings
of the board shall be open and accessible to the public in accordance with KRS
61.805 to 61.850, and any alternate method of conducting a meeting in lieu of
personal attendance shall ensure public access.
(11)Directors, except officers or employees of the state, shall receive one hundred
dollars ($100) compensation per day for their services and shall be entitled to
payment of any reasonable and necessary expense actually incurred in discharging
their duties under this chapter.
(12)Recognizing that the corporation and the Kentucky Higher Education Assistance
Authority are governed by the same board members appointed by the Governor and
managed by a common executive director and otherwise share staff functions, the
two
(2)organizations shall provide technical, clerical, and administrative assistance
to each other and for the Asset Resolution Corporation, the Kentucky Educational
Savings Plan Trust, and the Commonwealth postsecondary education prepaid
tuition trust fund, together with necessary office space and personnel, and shall
assist each other in all ways by the performance of any and all actions which may
be useful or beneficial in the performance of their public functions.
(13)The corporation shall enter into contracts with the Kentucky Higher Education
Assistance Authority, the Asset Resolution Corporation, the Kentucky Educational
Savings Plan Trust, and the Commonwealth postsecondary education prepaid
tuition trust fund as may be proper and appropriate in respect to services which may
include but not be limited to the servicing and collection of student loans or to
facilitate the common administration, operation, and management of the contracting
entities.