{"data":{"id":"us-ky/krs-164.748","jurisdiction":"us-ky","citation":"KRS 164.748","heading":"Powers and duties of board.","body":"The board shall have the following powers, functions, and duties:\n(1) To provide loan guarantees, upon terms and conditions the board may prescribe\nwithin the limitations provided by KRS 164.740 to 164.770, and the federal act in\nrespect of loans to eligib le borrowers. The board may require additional security,\nincluding endorsers it deems necessary and desirable and is not in contravention of\nthe federal act. The purpose of the loans shall be to assist individuals in meeting the\nexpense of their education.\n(2) To enter into agreements and undertakings with the secretary as may be required\nand necessary pursuant to the federal act in order to constitute the authority as a\nstate agency qualified and empowered to insure student loans within the meaning of\nthe federal act and to qualify insured student loans for interest payments,\nreimbursement, reinsurance, and other benefits available under the federal act to the\nauthority.\n(3) To issue loan guarantees in respect of loans made to eligible borrowers by\nparticipating lenders, including the authority. No loan guarantee shall be issued,\nexecuted, and delivered by the authority unless any insured student loan resulting\nshall be the subject of agreements pursuant to the federal act by which the insured\nstudent loan is made the subject of interest payments, reimbursements, reinsurance,\nand other benefits to the extent provided by the federal act.\n(4) To promulgate administrative regulations pursuant to KRS Chapter 13A pertaining\nto insured student loans, loan guarantee s, loans, and work -study payments and the\nawarding of grants, scholarships, and honorary scholarships, as provided in KRS\n164.740 to 164.7891.\n(5) To enter into contracts with eligible lenders, approved by the state to lend moneys,\nupon terms and condition s agreed upon between the authority and the eligible\nlender, to provide for the administration of student financial assistance programs,\nincluding, but not by way of limitation, the authority's program of insured student\nloans.\n(6) To enter into contracts with eligible institutions, upon terms and conditions agreed\nupon between the authority and the eligible institution, to provide for the\nadministration of student financial assistance programs, including, but not by way\nof limitation, the authority's program of insured student loans.\n(7) To receive funds from any source, public or private, by gift, grant, bequest, loan, or\notherwise, either absolutely or in trust, and to expend them, on behalf of the\nauthority and for any of its purposes; and to acquire fro m any source, public or\nprivate, by purchase, lease, gift, bequest, or devise, any property, real, personal, or\nmixed, absolutely or in trust, and to hold, administer, and dispose of it, on behalf of\nthe authority and for any of its purposes. The authority  shall not make its debts\npayable out of any funds except those of the authority.\n(8) To administer federal funds allotted to the state in respect of insured student loans,\nloan guarantees, loans, work -study, grants, scholarships, administrative costs, and\nrelated matters.\n(9) To sue and be sued in the name of the authority and to plead and be impleaded, and\nto purchase, on behalf of members of the board or officers and employees of the\nauthority, liability insurance for individual protection from liability  for acts and\nomissions committed in the course and scope of the individual's employment or\nservice.\n(10) To collect from individual borrowers loans made by the authority and insured\nstudent loans on which the authority has been compelled to meet its loan guarantee\nobligations following the inability of the participating lender involved to collect the\ninsured student loans.\n(11) To gather information on all loans, scholarships, honorary scholarships, grants, and\nwork-study opportunities available to Kentucky residents attending or planning to\nattend an eligible institution and to disseminate the information thr ough the\nmethods of mass communication necessary to ensure that Kentucky residents are\naware of financial resources available to those attending or desiring to attend an\neligible institution.\n(12) To request reports from each eligible institution or eligib le lender necessary for the\neffective performance of its duties and to publish the information it deems\nnecessary.\n(13) To approve, disapprove, limit, suspend, or terminate the participation of, or take\nemergency action to withhold authority funds and insu red student loans from\neligible institutions or eligible lenders in programs administered by the board,\nsubject to the provisions of the federal act and this chapter.\n(14) To perform other acts necessary or appropriate to carry out effectively the purposes\nof the authority as provided by KRS 164.740 to 164.7891 and KRS 164A.010 to\n164A.380.\n(15) If any conflict exists between KRS 164.740 to 164.770 and the federal act, which\nconflict would result in a loss by the authority of any federal funds, including, b ut\nnot by way of limitation, federal funds made available to the authority under the\nfederal act, including interest payments and reimbursement for insured student\nloans in default, to promulgate regulations and policies consistent with the federal\nact not in derogation of the Constitution and general laws of the Commonwealth.\n(16) Except where specifically prohibited by law, to secure data from any other\nCommonwealth of Kentucky agency or instrumentality or from any other source in\nfurtherance of any purpo ses of the authority related to any program or function\nadministered by the authority.\n(17) To enter into contracts with public or private nonprofit agencies, eligible to hold or\ninsure student loans under the federal act, to provide for the exchange of\ninformation, not in contravention of any federal or state law, or the provision of\nservices necessary to the administration of the authority's insured student loan\nprograms.\n(18) To enter into contracts with the Kentucky Higher Education Student Loan\nCorporation, the Kentucky Educational Savings Plan Trust, and the Commonwealth\npostsecondary education prepaid tuition trust fund as necessary or appropriate to\nfacilitate their common administration, operation, and management, as required\npursuant to KRS Chapter 164A.\n(19) To act as the board of directors of the Commonwealth postsecondary education\nprepaid tuition trust fund under KRS 164A.700 to 164A.709.\n(20) To conduct, in accordance with KRS Chapter 13B, administrative hearings\npertaining to any adverse actio n by the authority affecting participating institutions\nand lenders, eligible students, and borrowers of loans made by the authority and\ninsured student loans guaranteed by the authority. Wage garnishment hearings and\nadministrative review procedures pertaining to disputes concerning setoff of federal\ntax refunds shall be exempt under KRS 13B.020 and shall be conducted in\naccordance with applicable federal law. In an exempt hearing, the board or a\nhearing officer designated by the board may issue administra tive subpoenas for the\nattendance of witnesses and the production of documents relevant to the issues in\ndispute. Compliance with the subpoenas shall be enforceable by a court of\ncompetent jurisdiction.\n(21) To provide upon termination of the retirement pl an authorized by Executive Order\n75-964 to active and retired employees of the authority who participated in that\nplan, health insurance premiums and disability insurance benefits as provided to\nemployees who participate in a state -administered retirement system pursuant to\nKRS 18A.225 to 18A.229, 61.600, and 61.702.\n(22) To delegate to the executive director general supervision and direction over the\nadministrative function of the authority and its employees in carrying out the\npolicies, programs, administrative regulations, and directives of the board.","path":["KRS Chapter 164"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=4417","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:17Z","sha256":"b4c4be727c84ec78585ce107f489f66a9dd9c1d116e94f849326b7efd080e167","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164.746","next":"us-ky/krs-164.749"},"notice":"GroundRules: Original legal text. Not legal advice."}