KRS 164A.040: Purpose.

(1) The General Assembly of the Commonwealth of Kentucky hereby finds and

determines that as a result of the adoption of the education amendments of 1976 by

the Congress of the United States, being Public Law 94 -482, it is essential, in order

that the Commonwealth of Kentucky may continue to provide adequate educational

opportunities to all of its citizens and residents, that the corporation be created and

empowered to finance student loan operations in Kentucky by the issuance of its

bonds and notes for the purpose of making and purchasing student loans.

(2) The General Assembly hereby finds and declares further that in the performance of

its duties, powers and responsibilities, the corporation will be performing essential

public and governmental functions and shall be and constitute an independent de

jure municipal corporation and political subdivision of the Commonwealth of

Kentucky for the purpose of promoting higher educational opportunities through a

program of financing, making, and purchasing of student loans.