KRS 164.754: Education loan funds -- Administration account -- Creation.

There are hereby created, but not by way of limitation, for the purpose of carrying out the

purposes of KRS 164.740 to 164.764 the following special funds:

(1) A "scholarship fund" to which shall be credited all funds appropriated by the

General Assembly to the authority for scholarships, and all funds received from all

other sources for such purposes. All general funds appropriated to this account shall

become a part of this account, and shall not lapse.

(2) A "loan guarantee fund" account to which shall b e credited all funds legally

available to the authority and determined by the authority to be applied for the

purpose of guaranteeing loans to eligible students together with all funds obtained

from all other sources for such purposes. Such fund may be inv ested as provided by

law for the investment of Kentucky Public Employee Retirement System funds and

shall be assigned in trust to a corporate trustee for the security of the holders of

insured student loans; provided, however, that income derived from inve stment of

such fund shall be returned to the authority for deposit to the "administration"

account of the authority.

(3) An "administration" account to which shall be credited all funds appropriated by the

General Assembly to the authority for administrati on and all other funds authorized

for administrative costs. The authority may transfer from this account to the loan

fund, grant fund or work -study fund any amounts accruing in this account not

needed to cover the reasonable and necessary administrative ex penses of the

authority.

(4) A "loan fund" to which shall be credited all funds appropriated by the General

Assembly for loans and all funds received from all other sources for such purposes.

All general funds appropriated to this account shall become a pa rt of this revolving

account and shall not lapse. These funds may be invested as provided for the

investment of Kentucky Public Employee Retirement System funds or transferred

to the loan guarantee fund. Interest income and other income from loans or other

investments shall be transferred to the "administration" account of the authority.

(5) A "grant fund" to which shall be credited all funds appropriated by the General

Assembly for grants and all funds received from all other sources for such purposes.

(6) A "work -study fund" to which shall be credited all funds appropriated by the

General Assembly for work -study payments and all funds received from all other

sources for such purposes.