N.Y. Education Law § 653: Powers and duties of the board

§ 653. Powers and duties of the board. In furtherance of the purposes

set forth in this article, the board of trustees shall have the

following powers and duties:

1. To take, hold and preserve, on behalf of the corporation all moneys

appropriated to the corporation or otherwise available to it.

2. a. To submit to the governor, the temporary president of the

senate, the speaker of the assembly, the senate finance committee, the

assembly ways and means committee and the standing committees of the

legislature having jurisdiction of higher education, at such times as

the director of the budget may prescribe a student aid and loan budget

request for the following state fiscal year. The budget request shall

include, but not be limited to estimates of the number and

characteristics of students eligible for aid and loans, other than

education loans made under the New York higher education loan program

pursuant to part V of this article which budget request shall be

developed by the president after consultation with the board of regents

in order to implement the student financial aid and loan programs, other

than education loans made under the New York higher education loan

program pursuant to part V of this article provided for in this article.

Notwithstanding, the budget request shall also include an estimate of

the amounts needed for state operations within the New York higher

education loan program account for purposes of the New York higher

education loan program established pursuant to part V of this article. A

copy of the budget request shall be transmitted to the commissioner for

his information. The budget request submitted by the board shall be

subject to approval annually as part of the executive budget.

b. At the time and in the format prescribed by the Director of the

Budget, the Board shall submit to the Division of the Budget an

administrative and operating budget request. This budget request shall

be subject to approval annually as part of the executive budget.

c. In order further to assure the payment by the corporation to

lending institutions for defaulted loans, other than education loans

made under the New York higher education loan program pursuant to part V

of this article in the respective amounts as guaranteed by the

corporation pursuant to contract, there shall be annually apportioned

and paid to the corporation such estimated amount, if any, as shall be

certified by the board to the governor and director of the budget as

necessary to provide for the payment of all such defaults for the next

ensuing state fiscal year. The board shall, as part of its annual budget

request, make and deliver to the governor and director of the budget,

its certificate stating the estimated amount, if any, required to pay

such defaults for the ensuing state fiscal year, if any, and said sums

shall be apportioned and paid to the corporation during such fiscal

year.

3. To submit on or before November first of each calendar year an

annual report to the board of regents, the governor, the temporary

president of the senate, the speaker of the assembly, the senate finance

committee, the assembly ways and means committee and the standing

committees of the legislature having jurisdiction of higher education.

4. To sue and be sued in the name of the corporation provided,

however, a claim for money damages against the corporation, except where

such claim is based on an alleged guarantee made by the corporation

under the federal guaranteed student loan programs or is for interest or

other subsidies payable by the federal government under such programs,

shall be made solely under and pursuant to the provisions of the court

of claims act including but not limited to service thereunder upon the

attorney general. Except in the case where the provisions of the court

of claims act apply, process in any action or proceeding may be served

upon the secretary of state as agent for the corporation, in the manner

provided by section three hundred six of the business corporation law.

Provided, however, notwithstanding any inconsistent provision of law,

the venue of an action brought by or on behalf of the corporation on any

loan made or guaranteed by it which is in default, may be laid in Albany

county or any other county otherwise permitted by law and in any action

brought against the corporation the venue shall be laid in the county of

Albany. Provided further however, that in an action brought by or on

behalf of the corporation on any loan made or guaranteed by it which is

in default, a defendant shall be entitled, upon motion made in the

county in which venue has been laid and upon a showing of facts

sufficient to require a trial of any issue of fact, to a change of venue

to any other county permitted by law.

5. To procure a policy or policies of group life insurance to insure

the repayment of loans made or guaranteed by the corporation in the

event of the death of an individual to whom a loan is made or guaranteed

hereunder.

6. To appoint an advisory council to consist of three student

financial aid officers from public institutions of higher education,

three student financial aid officers from private institutions of higher

education, three representatives of banking institutions within the

state, and four students, one of whom shall be a student registered in a

full time course of study at an institution of the state university, one

of whom shall be a student registered in a full time course of study at

an institution of the city university of the city of New York, one of

whom shall be a student registered in a full time course of study at an

independent institution of higher education within the state, and one of

whom shall be a student registered in a full time course of study at a

community college located outside of the city of New York, to assist the

corporation on a regular basis in carrying out its purposes. The four

student members shall be appointed after consultation with and

recommendations from appropriate student organizations. Appointments

shall be for a period of three years, except that of the student members

which shall be for one year, and except that of the members first

appointed from public institutions of higher education and of the

members first appointed from private institutions of higher learning and

of the members first appointed from banking institutions, respectively,

one shall be appointed for a term of one year beginning July first,

nineteen hundred seventy-five and ending June thirtieth, nineteen

hundred seventy-six, one shall be appointed for a term of two years

beginning July first, nineteen hundred seventy-five and ending June

thirtieth, nineteen hundred seventy-seven and one shall be appointed for

a term of three years beginning July first, nineteen hundred

seventy-five and ending June thirtieth, nineteen hundred seventy-eight.

Any members whose employment or student status ceases to conform to the

above requirements shall be required to resign. Vacancies shall be

filled for the unexpired term in the same manner as original

appointments.

7. To prescribe, with the approval of the comptroller, a system of

accounts.

8. To take, hold and administer, on behalf of the corporation and for

any of its purposes, real property, personal property and moneys, or any

interest therein, and the income therefrom, either absolutely or in

trust, for any purpose of the corporation. The board may acquire

property or moneys for such purpose by purchase or lease in accordance

with the requirements of article eleven of the state finance law and by

the acceptance of gifts, grants, bequests, devises or loans; provided,

however, that no obligation of the corporation shall be a debt of the

state.

9. To perform such other acts as may be necessary or appropriate to

carry out the objects and purposes of the corporation as specified in

this article including promulgation of rules and regulations, which

shall be filed in accordance with section one hundred one-a of the

executive law.