KRS 164A.050: Kentucky Higher Education Student Loan Corporation -- Establishment

-- 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 Loa n 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.

(3) (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 offici al 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 Nominat ing

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 G overnor 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 d uly 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 tel econference 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 expe nse 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 exec utive 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 Comm onwealth 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.