MASSACHUSETTS COLLEGE STUDENT LOAN AUTHORITY

M.G.L. pt. Part I, tit. Title II, ch. c. 15C

in effect

M.G.L. c. 15C, § 1 Policy and purpose

c. 15C, § 1. Policy and purpose Section 1. It is declared that for the benefit of the people of the commonwealth, the increase of their commerce, welfare and prosperity and the improvement of their health and living conditions, it is essential that this and future generations of youth be given the fullest opportunity to learn and to develop their intellectual capacity and skills. It is declared further that the people of the commonwealth have a direct interest in promoting the education of its citizens and in maintaining and strengthening its system of higher education and that such actions are likely to result in a higher standard of living and higher levels of employment for citizens of the commonwealth. It is recognized that costs connected with undergraduate and graduate higher education are increasingly burdensome and that it is essential that students attending institutions for higher education in the commonwealth and residents of the commonwealth attending institutions for higher education outside the commonwealth, as well as parents and others responsible for paying the costs thereof, be provided with lower cost financial assistance and with convenient and effective savings programs in order to provide for such costs. It is also recognized that educational institutions for higher education within the commonwealth should be provided with appropriate additional means to provide financial assistance to qualified students and to parents and others responsible for paying the costs of education. It is also recognized that, in order to achieve these objectives, it is desirable for the commonwealth to make such financial assistance and savings programs available on a reciprocal basis to students in and residents of other states. Accordingly, it is the purpose of this chapter and the policy of the commonwealth to provide financial assistance, including loans and savings programs, for the benefit of residents of and students in the commonwealth, their parents and others responsible for the costs of their education and alternative methods to enable institutions for higher education in the commonwealth to assist qualified students, and to make such benefits available on a reciprocal basis to students and institutions in and residents of other states, all to the public benefit and good, to the extent and in the manner provided herein.

M.G.L. c. 15C, § 2 Short title

c. 15C, § 2. Short title Section 2. This chapter may be referred to and cited as the ''Massachusetts Educational Financing Authority Act''.

M.G.L. c. 15C, § 3 Definitions

c. 15C, § 3. Definitions Section 3. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:— ''Authority'', the Educational Financing Authority established by section four. ''Authority loans'', loans made by the Authority to other parties from the proceeds of its bonds or from other sources for the purpose of funding education loans. ''Bonds'' or ''revenue bonds'', revenue bonds or notes of the Authority issued under the provisions of this chapter, including refunding bonds or notes. ''Bond resolution'', the resolution or resolutions of the Authority and the trust agreement or trust agreements, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds. ''Borrower'', a student or any person who has received or agreed to pay an education loan on behalf of a student. ''Commonwealth bonds'', any evidence of general obligation indebtedness issued by the commonwealth. ''Default insurance'', insurance, letters of credit, standby credit agreements, take-out commitments, agreements or other forms of credit insuring against default or guaranteeing timely payment with respect to education loans, Authority loans or bonds. ''Default reserve fund'', a fund established pursuant to a bond resolution for the purpose of securing education loans, Authority loans or bonds. ''Education loan'', a loan to a borrower to finance or refinance a student's attendance at an institution for higher education made by or on behalf of such an institution or by a financial institution, which loan is made from or in anticipation of an Authority loan or is purchased by the Authority, or such a loan made directly by the Authority. ''Education loan series portfolio'', all education loans made by or on behalf of a specific institution for higher education or participations therein by the Authority and one or more financial institutions which are funded in whole or in part from the proceeds of an Authority loan to such institution out of the proceeds of a related specific bond issue through the Authority. ''Financial index'', a number or percentage compiled or reported periodically by an independent party used to indicate change in cost, price or other magnitude at a specified time, or a rate of interest charged by a particular lender or type of lender from time to time for loans of a particular kind. ''Loan funding deposit'', monies or other property deposited by or on behalf of an institution for higher education with the Authority or its bond trustee or other agent for the purpose of (i) providing security for bonds, (ii) funding a default reserve fund, (iii) acquiring default insurance, or (iv) defraying costs of the Authority, such monies or properties to be in such amounts as deemed necessary by the Authority as a condition for such institution's participation in the Authority's programs. ''Institution for higher education'', a nonprofit degree-granting educational institution within the commonwealth, whether public or private, authorized by law to provide a program of education beyond the secondary school level or any like institution located in a state other than the commonwealth if, in the judgment of the Authority, participation of institutions in such state in one or more programs of the Authority will be beneficial to citizens of the commonwealth and if, to the Authority's satisfaction, such state has agreed to provide reciprocal opportunities to institutions located in the commonwealth. ''Participating institution for higher education'', an institution for higher education which, pursuant to the provisions of this chapter, undertakes or agrees to participate in an education loan program or a savings program of the Authority as provided in this chapter. ''Parent'', any parent, legal guardian or sponsor of a student at an institution for higher education. ''Savings program'', a program approved and administered by the Authority designed to facilitate and encourage savings by or on behalf of students, future students, and parents for the purpose of paying for the costs of attendance at institutions of higher education. ''Tuition agreement'', a contractual arrangement between the Authority and an institution of higher education fixing all or a portion of the direct cost of attendance at such institution in one or more future years at a specified amount subject to adjustment in accordance with one or more financial indices.

M.G.L. c. 15C, § 4 Massachusetts educational financing authority; members; terms; meetings; surety bond; conflict of interest

c. 15C, § 4. Massachusetts educational financing authority; members; terms; meetings; surety bond; conflict of interest Section 4. (a) There is hereby established a body politic and corporate to be known as the Massachusetts Educational Financing Authority, herein called the Authority. The Authority is constituted a public instrumentality and the exercise by the Authority of the powers granted by this chapter shall be deemed and held to be the performance of an essential public function. The Authority shall consist of nine members who shall be residents of the commonwealth, not more than five of whom shall be members of the same political party. Seven members shall be appointed by the governor. At least four of the members shall be trustees, directors, officers or employees of public or private institutions for higher education in the commonwealth. At least three of the members shall be persons having a favorable reputation for skill, knowledge and experience in the fields of state and municipal finance, banking, law or investment advice or management. The other two members of the Authority shall be the secretary of economic development and the secretary of administration and finance, or their designees. The members of the Authority first appointed shall serve for terms expiring on July first in the years nineteen hundred and eighty-three, nineteen hundred and eighty-four, nineteen hundred and eighty-five, nineteen hundred and eighty-six, nineteen hundred and eighty-seven, and nineteen hundred and eighty-eight, respectively, the term of each such member to be designated by the governor. The term of each ex officio member shall be concurrent with his tenure in that office. Upon the expiration of the term of any originally appointed member his successor shall be appointed for a term of six years. The governor shall fill any vacancy for the remainder of the unexpired term. Any member of the Authority may be removed by the governor for misfeasance, malfeasance or wilful neglect of duty or other cause after notice and a public hearing unless such notice and hearing shall be expressly waived in writing. Members of the Authority may serve for successive terms of office. (b) The Authority shall annually elect one of its members as chairman and one as vice-chairman. It may appoint an executive director and assistant executive director, who shall not be members of the Authority, who shall serve at the pleasure of the Authority. They shall receive such compensation as shall be fixed by the Authority. (c) The executive director or assistant executive director or other person designated by resolution of the Authority shall keep a record of the proceedings of the Authority and shall be custodian of all books, documents and papers filed with the Authority, the minute book or journal of the Authority, and its official seal. Said executive director or assistant executive director or other person may cause copies to be made of all minutes and other records and documents of the Authority and may give certificates under the official seal of the Authority to the effect that such copies are true copies, and all persons dealing with the Authority may rely upon such certificates. (d) Five members of the Authority shall constitute a quorum. The affirmative vote of a majority of all the members of the Authority shall be necessary for any action taken by the Authority. A vacancy in the membership of the Authority shall not impair the right of a quorum to exercise all the rights and perform all the duties of the Authority. Any action taken by the Authority under the provisions of this chapter may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted. (e) Before the issuance of any bonds or notes under the provisions of this chapter, the chairman, vice-chairman, executive director and assistant executive director and any other member of the Authority authorized by resolution of the Authority to handle funds or sign checks of the Authority shall execute a surety bond in the penal sum of fifty thousand dollars, or in lieu thereof the chairman shall obtain a blanket position bond covering the executive director and every member and other employee of the Authority in the penal sum of fifty thousand dollars. Each such bond shall be conditioned upon the faithful performance of the duties of the principal or the members, executive director and other employees, as the case may be, shall be executed by a surety company authorized to transact business in the commonwealth as surety, shall be approved by the attorney general and shall be filed in the office of the state secretary. The cost of each such bond shall be paid by the Authority. (f) The members of the Authority shall receive no compensation for the performance of their duties hereunder but each such member shall be paid his necessary expenses incurred while engaged in the performance of such duties. (g) Any member, officer, agent or employee of the Authority who, directly or indirectly, has any financial interest in any organization participating in any program of the Authority shall be punished by a fine of not less than fifty dollars nor more than one thousand dollars, or by imprisonment for not more than one month, or both. (h) Notwithstanding any provision of chapter two hundred and sixty-eight A, a present or former employee of the commonwealth, or of any political subdivision thereof, or of any state, county or municipal agency as defined in said chapter two hundred and sixty-eight A may be a borrower of an education loan. Nor shall participating institutions for higher education be subject to the provisions of section ninety-six of chapter one hundred and forty. Notwithstanding the provisions of paragraph (g) or the provisions of any other law to the contrary, it shall not be or constitute a conflict of interest or violation of the provisions of said paragraph (g) or the provisions of any other law for a trustee, director, officer or employee of a participating institution for higher education or for a person having the required favorable reputation for skill, knowledge and experience in state and municipal finance to serve as a member of the Authority; provided, in each case to which provisions are applicable, such trustee, director, officer or employee of such participating institution for higher education abstains from discussion, deliberation, action and vote by the Authority in specific respect to any undertaking pursuant to this chapter in which such participating institution for higher education participates in an education loan, or otherwise has an interest, or any such person having the required favorable reputation for skill, knowledge and experience in state and municipal finance abstains from discussion, deliberation, action and vote by the Authority in specific respect to any sale, purchase or ownership of bonds or education loans of the Authority in which the investment banking firm or insurance company or bank of which such person is a partner, officer or employee has a past, current or future interest.

M.G.L. c. 15C, § 5 Purposes of authority; powers

c. 15C, § 5. Purposes of authority; powers Section 5. The purpose of the Authority shall be to assist borrowers and institutions for higher education in the financing and refinancing of the costs of education and to provide students and parents with convenient and effective savings programs, and for these purposes the Authority is authorized and empowered: (a) to adopt by-laws for the regulation of its affairs and the conduct of its business; (b) to adopt an official seal and alter the same at pleasure; (c) to maintain an office at such place or places in the commonwealth as it may designate; (d) to sue and be sued in its own name, plead and be impleaded; (e) to determine criteria and guidelines encompassing the type of and qualifications for education loan financing programs. The criteria and guidelines established by the Authority for its education loan financing programs shall include such eligibility standards for borrowers as the Authority shall determine are necessary or desirable in order to effectuate the purposes of the chapter, including the following:—(i) each student shall have a certificate of admission or enrollment at a participating institution for higher education, (ii) each student or his or her parents shall satisfy such financial qualifications as the Authority shall establish to effectuate the purposes of the chapter, and (iii) each student and his parents shall submit such information as may be required by the Authority to his or her institution of higher education; (f) to establish specific criteria governing the eligibility of institutions for higher education to participate in its programs, and for the making of Authority loans and education loans, provisions for default, the establishment of default reserve funds, the purchase of default insurance, the provision by such institutions of prudent debt service reserves, and the furnishing by participating institutions for higher education and others of such additional guarantees of the education loans, Authority loans or the bonds as the Authority shall determine, all of such criteria to be established to assure the marketability of the bonds and the adequacy of the security for the bonds. The criteria governing the eligibility of institutions for higher learning shall include limitations upon the principal amounts and the terms of education loans, criteria regarding the qualifications and characteristics of borrowers and procedures for allocating authority loans among institutions of higher education eligible for its program in order to effectuate the purposes of the chapter; (f1/2) to develop and administer one or more savings programs and to enter into tuition agreements on behalf of itself, the commonwealth, students, parents or any other private parties, all in cooperation with such other public and private parties and in accordance with such criteria or guidelines as the Authority shall deem appropriate to effectuate the purposes of this chapter. To the extent practicable, such savings program or programs shall provide students or parents an opportunity to participate conveniently and shall enable them to set aside relatively small amounts of money at a time and shall incorporate or be available in conjunction with, directly or indirectly, tuition agreements from as many institutions of higher education as feasible. To the extent practicable, and subject to the approval of the state treasurer, at least one such savings program shall include a college opportunity program, as described in section five A. In connection with any savings program or tuition agreement the Authority may accept and hold funds of students, parents, institutions of higher education or others, establish special accounts for such purposes and invest such funds in such manner as is authorized for Authority funds under section eighteen. (g) to establish rules and regulations with respect to Authority loans, educational loans, savings programs and tuition agreements. (h) to receive and accept from any source loans, contributions or grants for or in aid of an Authority education loan financing program or savings program or any portion thereof and, when desirable, to use such funds, property or labor only for the purposes for which it was loaned, contributed or granted; (i) to contract with guarantors, financial institutions or other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for education loans and which shall service and administer each education loan. The Authority may require that each borrower be charged a fee to defray the costs of origination, servicing and administration of education loans. The amount and method of collection of such fee shall be determined by the Authority. Participating institutions for higher education may perform these acts if authorized by the Authority; (j) to contract with a guarantor to provide security for the payment of education loans through the issuance of default insurance or letters of credit or other credit arrangements or to provide a guarantee of payment covering all or a portion of each education loan made by or on behalf of the Authority or by or on behalf of an institution for higher education from the proceeds of an Authority loan. (k) to employ attorneys, accountants, consultants, financial experts, loan processors, banks, managers, and such other employees and agents as may be necessary in its judgment, and to fix their compensation; (l) to make direct education loans or to purchase education loans from or to make Authority loans to participating institutions for higher education or financial institutions and require that the proceeds of such Authority loans be used for making education loans, funding reserves, providing for capitalized interest and paying other costs and fees involved in making education loan or issuing bonds. (l1/2) to sell education loans or Authority loans to such buyers on such terms and in such amounts as the Authority may determine. (m) to charge and equitably apportion among participating institutions for higher education its administrative costs and expenses incurred in the exercise of the powers and duties granted by this chapter; (n) to borrow working capital funds and other funds as may be necessary for start-up and continuing operations, as long as such funds are borrowed in the name of the Authority only. Such borrowings shall be limited obligations of the character described in section twelve and shall be payable solely from revenues of the Authority or the proceeds of bonds pledged for that purpose; (o) notwithstanding any other provisions in this chapter, to commingle and pledge as security for one or more series or issues of bonds, only with the consent of all of the institutions of higher education which are participating in such series or issues, (a) the education loan series portfolios and some or all future education loan series portfolios of such institutions of higher education; and (b) the loan funding deposits of such institutions. Bonds may be issued in series under one or more resolutions or trust agreements in the discretion of the Authority. (p) to examine records and financial reports of participating institutions for higher education, and to examine records and financial reports of any person, organization or institution retained under clauses (i), (j) or (k) of this section; (q) to do all things necessary or convenient to carry out the purposes of this chapter. In carrying out the purposes of this chapter, the Authority may issue bonds the proceeds of which are loaned to two or more participating institutions for higher education or for any combination of participating institutions for higher education and, thereupon all other provisions of this chapter shall apply to and for the benefit of the Authority and the participants in such joint project or projects. Any such joint participation requires the express approval of all participants. The Authority shall require that Authority loans be used solely for the purpose of education loans and in an amount not to exceed the total cost of attendance, as defined by the Authority, less other forms of student assistance. The Authority shall require that institutions for higher education shall insist that each borrower under an education loan shall use the proceeds solely for educational purposes and purposes reasonably related thereto and that each such borrower shall so certify. Whenever refunding bonds are issued to refund bonds the proceeds of which were used to make Authority loans, the Authority may reduce or increase the amount it is owed by the institution for higher education which had received Authority loans from the proceeds of the refunded bonds. Such institutions of higher education may reduce or increase the amount of interest being paid on education loans which the institution has made pursuant to the Authority loans from the proceeds of the refunded bonds.

M.G.L. c. 15C, § 5A College opportunity program; bonds; issuance; redemption; tuition agreements

c. 15C, § 5A. College opportunity program; bonds; issuance; redemption; tuition agreements Section 5A. The Authority shall, subject to paragraph (f1/2) of section five, establish a college opportunity program, which shall, to the extent feasible, include the following elements:— (a) In cooperation with the state treasurer, the Authority shall make available commonwealth bonds, including bonds in small denominations or units of participation in commonwealth bonds, for purchase on behalf of named beneficiaries who are anticipated to use the payments on said bonds to provide for costs of attendance at institutions of higher education. Said bonds or units of participation, either or both of which shall be referred to for purposes of this section as college opportunity bonds, shall bear interest at a variable rate determined by reference to a financial index reflecting inflation in costs of attendance at such institutions. No payments of interest or principal on said bonds shall be made except upon maturity or earlier redemption. Said bonds shall be made available with varied and flexible redemption and maturity dates, as required to accommodate the savings requirements for beneficiaries who intend to use the principal and interest on said bonds to provide for costs of higher education. The Authority shall make the arrangements necessary to enable purchasers of college opportunity bonds to make purchases by convenient means, including but not limited to the use of payroll savings plans or other recurrent payments of relatively small amounts. Purchasers of college opportunity bonds may be required to pay fees or to buy said bonds at a premium to cover all or part of the costs of issuance, of administration of the college opportunity program, and of the cost to the commonwealth of associated financial arrangements to limit or control the commonwealth's interest costs for college opportunity bonds. (b) The Authority shall enter into tuition agreements with public and private institutions of higher education to ensure that tuitions charged to college opportunity bond beneficiaries do not rise at a rate greater than the return on college opportunity bonds. Under such agreements, such institutions will agree, as a condition of being accepted as participating institutions in the college opportunity program, that the tuition charged to a student who pays for said tuition with the proceeds from principal and interest payments from college opportunity bonds will not increase over the tuition at the time of original issuance and sale of said bonds at a rate greater than the interest rate on said bonds and to such other terms as the Authority may require. (c) The Authority shall, in consultation with the state treasurer, establish rules and regulations for the redemption of college opportunity bonds. Such rules shall provide that such bonds, when redeemed for use in meeting costs of the named beneficiary's higher education at a participating institution or for purchase of additional college opportunity bonds, shall be redeemed for the full value provided for pursuant to paragraph (a). Such rules shall further provide for one or more penalties that reduce such redemption value when college opportunity bonds are redeemed for use in meeting costs of the named beneficiary's higher education at an institution other than a participating institution or when they are redeemed for use for other purposes. Such rules shall further allow for the substitution, in appropriate circumstances, of a sibling or other close relative in place of the named beneficiary, for the purposes of the restrictions imposed by this paragraph and may allow for early redemption in cases of extreme hardship. (d) The Authority shall study, and shall consult with the state treasurer and the secretary of administration and finance concerning, the practicability and the desirability of the commonwealth entering into financial arrangements, pursuant to section thirty-eight C of chapter twenty-nine, to limit or control the potential costs to the commonwealth of meeting its interest obligations on college opportunity bonds. (e) The Authority shall investigate the possibility of, and, if feasible, shall negotiate, reciprocal agreements with other governmental entities offering similar college savings plans. Such agreements shall be designed to allow named beneficiaries of college opportunity bonds to use such bonds for educational costs, and to receive the benefits of tuition agreements, at the widest possible range of institutions of higher education, and to allow institutions of higher education in the commonwealth to receive the benefits of participation in college savings programs established by other governmental entities.

M.G.L. c. 15C, § 5B Powers and duties of authority for implementation and administration of savings programs

c. 15C, § 5B. Powers and duties of authority for implementation and administration of savings programs Section 5B. For the purposes of implementing and administering savings programs, pursuant to paragraph (f1/2) of section five, the Authority shall have, in addition to all other powers and duties provided by this chapter, the following additional powers and duties: (a) To create and supervise a marketing and distribution system for bonds or other units of participation in savings programs, either or both of which shall be referred to for purposes of this section as ''units'', and to establish proper books of record and account to record the identity of the purchasers and the named beneficiaries, the amounts payable as principal and interest, the receipts and expenses of the Authority with respect to the program and other matters necessary to the administration of the program. (b) To establish minimum and maximum unit amounts with respect to the savings programs, procedures for the crediting of interest accrued with respect to the units, procedures with respect to payment of the balance due on the final maturity date of a unit or otherwise, procedures with respect to the determinations of eligible beneficiaries, and procedures to accommodate the acquisition of units through payroll savings plans and other similar programs. (c) To employ financial, marketing, legal and other consultants and advisors for the purpose of consulting with the Authority on the implementation and ongoing administration of the savings programs and to enter into contracts and agreements necessary in connection therewith. (d) To provide for the terms and conditions of participation in savings programs by participating institutions and to prescribe the form of, from time to time, and to execute such contracts and agreements with the participating institutions as shall be appropriate to reflect such terms and conditions. (e) To enter into one or more contracts and agreements for marketing, distribution and administration services in connection with savings programs. (f) To obtain by purchase, lease or license such equipment and facilities, including computer software and hardware, and to employ staff necessary or convenient to carry out the savings programs. (g) To establish a schedule of fees and charges, including premiums in connection with the sale of units of savings, sufficient to provide for the estimated costs of the program incurred by the Authority. (h) To take such further actions and establish such further procedures as shall be appropriate to carry out the purposes of the savings programs.

M.G.L. c. 15C, § 5C Comprehensive state-supported supplemental education loan program; development

c. 15C, § 5C. Comprehensive state-supported supplemental education loan program; development Section 5C. The authority is hereby authorized to develop and establish a comprehensive state-supported supplemental education loan program. Such program shall consist of medium and long-range fixed rate and variable rate loan programs, programs structured to operate as a line of credit, and other programs and options as the authority may determine to be useful and feasible. Such programs shall be at effective rates of interest and other terms, to the extent feasible and to the extent funds are appropriated by the commonwealth therefor, more attractive than prevailing rates and more attractive than other terms available from conventional supplemental education lenders. The authority's program shall be developed and operated in conjunction with participating institutions of higher education and shall be designed to assist such institutions in attracting and retaining students. Such program shall be designed so as to maximize the amount of funds available for loans by leveraging amounts appropriated by the commonwealth with private sector financing and by operating in conjunction with such private activity tax-exempt bond cap as may be allocated by the commonwealth. Such program shall include, to the maximum extent feasible and subject to the appropriation of funds by the commonwealth, loans available on affordable terms to families or individuals who, because of a high debt-to-income ratio, may otherwise be ineligible for credit-based supplemental education loans. The authority shall design such comprehensive program, and make the public aware of it, in such manner as to provide assistance to as many qualified students and to as many institutions of higher education as possible. Funds appropriated by the commonwealth to the authority for the purpose of this section shall be applied by the authority solely to the reasonable and necessary development costs of its programs and to the funding of reasonable and necessary reserves and other security arrangements for its programs, all, to the extent feasible, in such manner as to develop over time a self-replenishing permanent source of education loan funding.

M.G.L. c. 15C, § 6 Payment of expenses

c. 15C, § 6. Payment of expenses Section 6. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under the authority of this chapter and no liability or obligations shall be incurred by the Authority hereunder beyond the extent to which monies shall have been provided under the provisions of this chapter.

M.G.L. c. 15C, § 7 Guidelines for deposits of monies, endowments, etc.; default reserve fund

c. 15C, § 7. Guidelines for deposits of monies, endowments, etc.; default reserve fund Section 7. The Authority is authorized and empowered to establish specific guidelines relating to the deposits of certain monies, endowments, or properties by institutions for higher education which would provide security for education loans funding programs, Authority loans, education loans or for bonds and to establish guidelines relating to guarantees of or contracts to purchase education loans, tuition agreements or bonds by such institutions or by financial institutions or others. A default reserve fund may be established for each series or issue of bonds. In this regard, the Authority is empowered to receive such monies, endowments, properties, and guarantees as it deems appropriate and, if necessary, to take title in the name of the Authority or in the name of a participating institution for higher education or a trustee.

M.G.L. c. 15C, § 8 Conveyance of assets comprising loan funding deposits

c. 15C, § 8. Conveyance of assets comprising loan funding deposits Section 8. When the principal of, interest on and premium, if any, due in connection with bonds of the Authority issued to finance the cost of an education loan financing program or programs, including any refunding bonds issued to refund and refinance such bonds, have been fully paid and retired or when adequate provision has been made to fully pay and retire the same, and all other conditions of the bond resolution authorizing the same have been satisfied and the security interest or lien created by such bond resolution has been released in accordance with the provisions thereof, the Authority shall promptly do such things and execute such deeds and conveyances as are necessary and required to convey any remaining monies, properties and other assets comprising loan funding deposits to the participating institutions for higher education which furnished the same in proportion to the amounts furnished by the respective participating institutions for higher education.

M.G.L. c. 15C, § 9 Negotiable notes; issuance; terms or conditions

c. 15C, § 9. Negotiable notes; issuance; terms or conditions Section 9. The Authority may from time to time issue negotiable notes for any corporate purpose and may from time to time renew any notes by the issuance of new notes, whether the notes to be renewed have or have not matured. The Authority may issue notes partly to renew notes or to discharge other obligations then outstanding and partly for any other purpose. The notes may be authorized, sold, executed and delivered in the same manner as bonds. Any resolution or resolutions authorizing notes of the Authority or any issue thereof may contain any provisions which the Authority is authorized to include in any resolution or resolutions authorizing revenue bonds of the Authority or any issue thereof, and the Authority may include in any notes any terms, covenants or conditions which it is authorized to include in any bonds. Such resolution or resolutions may delegate to the executive director, assistant executive director, or any member of the Authority or any combination of them, the power to determine any of the details of the notes and to award such notes to a purchaser or purchasers. All such notes shall be payable solely from the revenues of the Authority, subject only to any contractual rights of the holders of any of its notes or other obligations then outstanding.

M.G.L. c. 15C, § 10 Revenue bonds, notes, or other obligations; issuance; authorization by resolution; resolution provisions; liability

c. 15C, § 10. Revenue bonds, notes, or other obligations; issuance; authorization by resolution; resolution provisions; liability Section 10. (a) The Authority may from time to time issue revenue bonds for any corporate purpose and all such revenue bonds, notes, bond anticipation notes or other obligations of the Authority issued pursuant to this chapter shall be and are hereby declared to be negotiable for all purposes notwithstanding their payment from a limited source and without regard to any other law or laws subject only to the provisions of revenue bonds or notes for registration. In anticipation of the sale of such revenue bonds, the Authority may issue negotiable bond anticipation notes and may renew the same from time to time, but the maximum maturity of any such note, including renewals thereof, shall not exceed five years from the date of issue of the original note. Such notes shall be paid from any revenues of the Authority available therefor and not otherwise pledged, or from the proceeds of sale of the revenue bonds of the Authority in anticipation of which they were issued. The notes shall be issued in the same manner as the revenue bonds. Such notes and the resolution or resolutions authorizing the same may contain any provisions, conditions or limitations which a bond resolution of the Authority may contain. (b) The revenue bonds and notes of every issue shall be payable solely out of the revenues of the Authority, pertaining to the program relating to such bonds or notes including principal and interest on Authority loans and education loans, payments by participating institutions for higher education banks, guarantors, insurance companies or others pursuant to letters of credit or purchase agreements, investment earnings from funds or accounts maintained pursuant to the bond resolution, insurance proceeds, loan funding deposits, proceeds of sales of education loans, proceeds of refunding bonds and fees, charges and other revenues of the Authority from such program but subject only to any agreements with the holders of particular revenue bonds or notes pledging any particular revenues and subject to any agreements with any participating institution for higher education. (c) The revenue bonds or notes may be issued as serial bonds or notes or as term bonds or notes, or the Authority, in its discretion, may issue bonds or notes of both types. The revenue bonds or notes shall be authorized by resolution of the members of the Authority and shall bear such date or dates and mature at such time or times not exceeding thirty years from the date of issuance from their respective dates, bear interest at such rate or rates, payable at such time or times, be in such denominations, be in such form either coupon or registered, carry such registration or conversion privileges, be executed with manual or facsimile signatures in such manner, be payable in lawful money of the United States at such place or places, and be subject to such terms of redemption, as such resolution or resolutions may provide. Such resolution or resolutions may delegate to the executive director, assistant executive director or any member of the Authority, or any combination of them, the power to determine any of the matters set forth in this section and the power to award the bonds to a purchaser or purchasers at public sale or to negotiate a sale to a purchaser or purchasers provided in the latter case that the bonds are to be reoffered to the public. The revenue bonds or notes may be sold at public or private sale for such price or prices as the Authority shall determine. Pending preparation of the definitive bonds, the Authority may issue interim receipts or certificates which shall be exchanged for such definitive bonds. (d) Any resolution or resolutions authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized as to: (1) pledging all or any part of the authority loans, education loans or revenues derived from the Authority loans and education loans with respect to which such bonds or notes are to be issued; (2) pledging all or any part of the revenues paid to the Authority by any guarantor or insurance company; (3) any revenue producing contract or contracts made by the Authority with any individual, partnership, corporation or association or other body, public or private, or any federally guaranteed security and moneys received therefrom whether such security is acquired by the Authority or a participating institution for higher education to secure the payment of the revenue bonds or notes or of any particular issue of revenue bonds or with, subject to such agreements with bondholders or noteholders as may then exist; (4) the fees and other amounts to be charged, and the sums to be raised in each year thereby, and the use, investment and disposition of such sums; (5) the establishment and setting aside of reserves or sinking funds, the setting aside of loan funding deposits, capitalized interest accounts, and cost of issuance accounts, and the regulation and disposition thereof; (6) limitations on the use of the education loans; (7) limitations on the purpose to which the proceeds of sale of any issue of revenue bonds or notes then or thereafter to be issued may be applied, including as authorized purposes, all costs and expenses necessary or incidental to the issuance of bonds, to the acquisition of or commitment to acquire any federally guaranteed security and pledging such proceeds to secure the payment of the revenue bonds, notes or any issue of the revenue bonds or notes; (8) limitations on the issuance of additional bonds or notes, the terms upon which additional bonds may be issued and secured and the terms on which additional bonds or notes may rank on a parity with, or be subordinate or superior to, other bonds or notes; (9) the refunding of outstanding bonds or notes; (10) the procedure, if any, by which the terms of any contract with bondholders, bonds may be amended; (11) limitations on the amount of moneys derived from the educational program to be expended for operating, administrative or other expenses of the Authority; (12) defining the acts or omissions to act which shall constitute a default in the duties of the Authority to holders of its obligations and providing the rights and remedies of such holders in the event of default; (13) the duties, obligations and liabilities of any trustee or paying agent; and (14) providing for guarantees, pledges of endowments, letters of credit, property or other security for the benefit of the holders of such bonds or notes; and (15) any other matters relating to the bonds or notes which the Authority deems desirable. (e) Neither the members of the Authority nor any person executing the revenue bonds or notes shall be liable personally on the revenue bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof. (f) The Authority shall have power out of any funds available therefor to purchase its bonds or notes. The Authority may hold, pledge, cancel or resell such bonds or notes subject to and in accordance with agreements with bondholders.

M.G.L. c. 15C, § 11 Trust agreements as security for revenue bonds or notes; provisions of trust agreements

c. 15C, § 11. Trust agreements as security for revenue bonds or notes; provisions of trust agreements Section 11. In the discretion of the Authority any revenue bonds or notes issued under the provisions of this chapter may be secured by a trust agreement by and between the Authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within the commonwealth. Such trust agreement or resolution providing for the issuance of such revenue bonds or notes may contain such provisions for protecting and enforcing the rights and remedies of the bondholders or noteholders as may be reasonable and proper and not in violation of law, including particularly such provisions as have hereinabove been specifically authorized to be included in any resolution or resolutions of the Authority authorizing revenue bonds or notes thereof. Any bank or trust company incorporated under the laws of the commonwealth which may act as depository of the proceeds of bonds or notes or of revenues or other monies may furnish such indemnity bonds or pledge such securities as may be required by the Authority. Any such trust agreement may set forth the rights and remedies of the bondholders or noteholders and of the trustee or trustees, and may restrict the individual right of action by bondholders or noteholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders or noteholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the education loan program.

M.G.L. c. 15C, § 12 Payment of bonds or notes; liability of commonwealth

c. 15C, § 12. Payment of bonds or notes; liability of commonwealth Section 12. Revenue bonds or notes issued under the provisions of this chapter shall not be deemed to constitute a debt or liability of the commonwealth or of any political subdivision thereof or a pledge of the faith and credit of the commonwealth or of any such political subdivision, but shall be payable solely from the funds herein provided therefor from revenues. All such revenue bonds or notes shall contain on the face thereof a statement to the effect neither the commonwealth nor the Authority shall be obligated to pay the same or the interest thereon except from revenues of the education loan program or programs or the portion thereof for which they are issued and that neither the faith and credit nor the taxing power of the commonwealth or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds or notes. The issuance of revenue bonds or notes under the provisions of this chapter shall not directly or indirectly or contingently obligate the commonwealth or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment.

M.G.L. c. 15C, § 13 Fees; contracts; pledge of revenues; sinking fund

c. 15C, § 13. Fees; contracts; pledge of revenues; sinking fund Section 13. The Authority shall fix, revise, charge and collect fees and is empowered to contract with any person, partnership, association or corporation, or other body, public or private, in respect thereof such that the fees and other amounts payable with respect to any program or programs of the Authority shall be sufficient at all times, (a) to pay or provide for the administrative costs and expenses of such program, (b) to pay the principal of, the premium, if any, and the interest on outstanding bonds or notes of the Authority issued in respect of such program to the extent that other revenues of the Authority pledged for the payment of the bonds or notes are insufficient to pay the bonds or notes as they become due and payable, (c) to create and maintain reserves which may but need not be required or provided for in the bond resolution relating to such bonds or notes of the Authority, and (d) to establish and maintain whatever education loan servicing, control, or audit procedures are deemed to be necessary or appropriate to the operations of the Authority. The Authority may pledge as security for the issue of bonds or notes for a particular program the revenues, as described in paragraph (b) of section ten, from each such program and any other contract rights arising out of contracts entered into by the Authority or assigned to the Authority in connection with each such program. All such pledges shall be valid and binding from the time when the pledge is made; the revenues and contract rights so pledged by the Authority shall immediately be subject to the lien of such pledge without any physical act, delivery thereof or further act, and the lien of any such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Authority or any participating institution for higher education, irrespective of whether such parties have notice thereof. Neither the bond resolution nor any financing statement, continuation statement or other instrument by which a pledge or security interest is created or perfected or by which the Authority's interest in such revenues or contract rights is assigned needs to be filed in any public records in order to perfect the security interest or lien thereof as against third parties except in the records of the Authority. The use and disposition of monies to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or notes or of such trust agreement. Except as may otherwise be provided in such resolution, or such trust agreement, such sinking or other similar fund shall be a fund for all such revenue bonds or notes issued to finance an educational program or programs at one or more participating institutions for higher education, without distinction or priority of one over another; provided the Authority in any such resolution or trust agreement may provide that such sinking or other similar fund shall be the fund for a particular educational program or programs at a participating institution or institutions for higher education and for the revenue bonds or notes issued to finance a particular educational program or programs and may, additionally, permit and provide for the issuance of revenue bonds or notes having a subordinate lien in respect of the security herein authorized to other revenue bonds or notes of the Authority and, in such case, the Authority may create separate or other similar funds in respect of such subordinate lien bonds or notes.

M.G.L. c. 15C, § 14 Monies received; trust funds

c. 15C, § 14. Monies received; trust funds Section 14. All monies received pursuant to the Authority of this chapter, whether as proceeds from the sale of bonds or notes, in connection with any savings program or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this chapter. Any officer with whom, or any bank or trust company with which, such monies shall be deposited shall act as trustee of such monies and shall hold and apply the same for the purposes hereof, subject to such regulations as this chapter and the resolution authorizing the bonds or notes of any issue or the trust agreement securing such bonds or notes may provide.

M.G.L. c. 15C, § 14A State colleges and universities participation fund

c. 15C, § 14A. State colleges and universities participation fund Section 14A. Notwithstanding any special or general law to the contrary, the board of trustees of each institution referred to in this section shall have the authority to enter into such contracts, subject to appropriation, as in their respective judgments are desirable in order to participate in any program established pursuant to this chapter. The Authority shall establish a state colleges and universities participation fund to which shall be credited all state appropriations and other monies made available to the fund. Moneys in the fund may be used solely for the purpose of supporting the participation in the education loan program established pursuant to this chapter of state colleges and institutions under the control of the board of trustees of state colleges, the University of Lowell, the Southeastern Massachusetts University, the University of Massachusetts and the other institutions named in section three of chapter fifteen A. Monies therein may be held in custody by one or more banks or trust companies having a principal place of business in the commonwealth or may be invested in the manner set forth in section eighteen, as the Authority shall determine. Income earned on the fund may be used for any lawful purpose of the Authority. The Authority may pledge all or a portion of the monies or investments which are to be deposited in the fund, or any income therefrom, in furtherance of the purpose for which such fund is created. Such pledge shall be valid and binding as against all parties having claims of any kind against such fund from the time such pledge is made, irrespective of whether such parties have notice thereof.

M.G.L. c. 15C, § 14B College opportunity fund; purposes; pledges

c. 15C, § 14B. College opportunity fund; purposes; pledges Section 14B. The Authority shall establish, in such form as it deems appropriate, a college opportunity fund, hereinafter referred to as the fund, to which shall be credited all state appropriations and other monies made available to the fund and all income earned on amounts in the fund. Monies in the fund, together with earnings thereon, may be used solely for the purpose of developing, promoting, administering or supporting savings programs and tuition agreements established under this chapter. Monies therein may be held in custody by one or more banks or trust companies having a principal place of business in the commonwealth or may be invested in the manner set forth in section eighteen, as the Authority shall determine. The Authority may pledge all or a portion of the monies or investments which are to be deposited in the fund, or any income therefrom, in furtherance of the purpose for which such fund is created. Such pledge shall be valid and binding as against all parties having claims of any kind against such fund from the time such pledge is made, irrespective of whether such parties have notice thereof.

M.G.L. c. 15C, § 15 Holders of revenue bonds, notes, or other obligations, and trustees; enforcement of rights; compelling performance of duties of authority

c. 15C, § 15. Holders of revenue bonds, notes, or other obligations, and trustees; enforcement of rights; compelling performance of duties of authority Section 15. Any holder of revenue bonds, notes, bond anticipation notes, other notes or other obligations of the Authority issued under the provisions of this chapter or any of the coupons appertaining thereto, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of, or any such trust agreement securing, such bonds or other obligations, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the commonwealth or granted hereunder or under such resolution or trust agreement, and may enforce and compel the performance of all duties required by this chapter or by such resolution or trust agreement to be performed by the Authority or any officer, employee or agent thereof, including the appointment of a receiver to administer and operate the education loan program or programs, the revenues of which are pledged to the payment of principal of, premium, if any, and interest on such bonds or notes, with full power to pay, and to provide for payment of, principal of, premium, if any, and interest on such bonds or notes, and with such powers, subject to the direction of the court, as are permitted by law and are accorded receivers, excluding any power to pledge additional revenues of the Authority to the payment of such principal, premium and interest.

M.G.L. c. 15C, § 16 Exercise of powers for benefit of commonwealth; tax exempt status

c. 15C, § 16. Exercise of powers for benefit of commonwealth; tax exempt status Section 16. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the commonwealth, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and as operation of an educational program and assistance to students to secure a better education by the Authority or its agent shall constitute the performance of an essential public function, neither the Authority nor its agent shall be required to pay any taxes or assessments upon or in respect to a project or any property acquired or used by the Authority or its agent under the provisions of this chapter or upon the income therefrom, and any bond issued under the provisions of this chapter, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the commonwealth and by the municipalities and other political subdivisions in the commonwealth.

M.G.L. c. 15C, § 17 Refunding of outstanding revenue bonds or notes; investment and reinvestment of proceeds; additional loans

c. 15C, § 17. Refunding of outstanding revenue bonds or notes; investment and reinvestment of proceeds; additional loans Section 17. (a) The Authority is hereby authorized to provide for the issuance of revenue bonds or notes of the Authority for the purposes of refunding any revenue bonds or notes of the Authority then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of such revenue bonds or notes, and, if deemed advisable by the Authority, for the additional purpose of making an additional Authority loan. (b) The proceeds of any such revenue bonds or notes issued for the purpose of refunding outstanding revenue bonds may, in the discretion of the Authority, be applied to the purchase or retirement at maturity or redemption of such outstanding revenue bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the Authority. (c) Any such escrowed proceeds pending such use may be invested and reinvested in direct obligations of the United States, or in certificates of deposit or time deposits secured by direct obligations of the United States, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the Authority for use by it in any lawful manner. (d) The portion of the proceeds of any such revenue bonds or notes issued for the additional purpose of making additional Authority loans may be invested and reinvested in direct obligations of the United States, or in certificates of deposit or time deposits secured by direct obligations of the United States, maturing not later than the time or times when such proceeds will be needed for the purpose of paying all or any part of such cost. The interest, income and profits, if any, earned or realized on such investment may be applied to the payment of all or any part of such cost or may be used by the Authority in any lawful manner. (e) All such revenue bonds or notes shall be subject to the provisions of this chapter in the same manner and to the same extent as other revenue bonds issued pursuant to this chapter.

M.G.L. c. 15C, § 18 Investment of funds by authority

c. 15C, § 18. Investment of funds by authority Section 18. Except as otherwise provided in paragraph (c) of section seventeen, or as provided in any bond resolution applicable to any bonds of the Authority, the Authority may invest any funds in (i) direct general obligations of the United States of America, (ii) obligations the payment of the principal and interest on which, by Act of the Congress of the United States or in the opinion of the Attorney General of the United States in office at the time such obligations were issued, are unconditionally guaranteed by the United States of America, (iii) bonds, debentures, participation certificates, notes or similar evidences of indebtedness payable in cash issued by any one or a combination of any of the following: Federal Banks for Cooperatives, Federal Land Banks, Federal Home Loan Banks, Federal Farm Credit Banks, Federal Intermediate Credit Banks, Export-Import Banks of the United States, Farmers Home Administration, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association or Government National Mortgage Association, and the Student Loan Marketing Association, (iv) public housing bonds issued by public agencies or municipalities are fully secured as to the payment of both principal and interest by a pledge of annual contributions under an annual contributions contract or contracts with the United States of America; or temporary notes, preliminary notes or project notes issued by public agencies or municipalities, in each case fully secured as to the payment of both principal and interest by a requisition or payment agreement with the United States of America, (v) direct and general obligations of any state or political subdivision thereof or territory of the United States to the payment of the principal of and interest on which the full faith and credit of such state is pledged, provided that at the time of their purchase such obligations are rated in one of the four highest rating categories by any nationally recognized rating agency, (vi) bank time deposits evidenced by certificates of deposit of or time deposits constituting direct obligations of banks which are members of the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, provided that, to the extent such time deposits exceed available federal deposit insurance, such time deposits are fully secured by obligations described in items (i) through (iv) above, which at all times have a market value (exclusive of accrued interest) at least equal to such bank time deposits so secured, including interest, or such deposits are due within one year and are issued by banks the senior long-term debt securities of which are rated in one of the four highest categories by any nationally recognized rating agency, (vii) repurchase agreements for obligations of the type specified in clauses (i) through (iv) above with federally insured banking institutions which have a capital and surplus aggregating at least one hundred million dollars, provided such repurchase agreements are fully collateralized and secured by such obligations having a market value, exclusive of accrued interest, at least equal to the purchase price of such repurchase agreements and which shall be delivered to a trustee, (viii) investment agreements with banks the senior long-term debt securities of which are rated in one of the four highest categories by any nationally recognized rating agency and which have a capital and surplus aggregating at least one hundred million dollars, and (ix) in any other manner specifically approved for the purpose of the particular investment by resolution of the Authority. Any such securities may be purchased at the offering or market price thereof at the time of such purchase. All such securities so purchased shall mature or be redeemable on a date or dates prior to the time when, in the judgment of the Authority, the funds so invested will be required for expenditure. The express judgment of the Authority as to the time when any funds shall be required for expenditure or be redeemable is final and conclusive.

M.G.L. c. 15C, § 19 Bonds as investment securities

c. 15C, § 19. Bonds as investment securities Section 19. Bonds issued by the Authority under the provisions of this chapter are hereby made securities in which all public officers and public bodies of the commonwealth and its political subdivisions, all insurance companies, trust companies, savings banks, co-operative banks, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any commonwealth or municipal officer or any agency or political subdivision of the commonwealth for any purpose for which the deposit of bonds or obligations of the commonwealth is now or may hereafter be authorized by law.

M.G.L. c. 15C, § 20 Report of authority; audit

c. 15C, § 20. Report of authority; audit Section 20. The Authority shall keep an accurate account of all its activities and of all its receipts and expenditures and shall annually make a report thereof as of the end of its fiscal year to its members, to the governor and to the state auditor, such reports to be in a form prescribed by the members, with the written approval of said auditor. The members or said auditor may investigate the affairs of the Authority, may severally examine the properties and records of the Authority, and may prescribe methods of accounting and the rendering of periodical reports in relation to projects undertaken by the Authority. The Authority shall be subject to audit by the state auditor, in accordance with generally accepted government auditing standards, once every 3 years and as often as the state auditor determines is necessary.

M.G.L. c. 15C, § 21 Powers of participating higher education institutions; interest rates

c. 15C, § 21. Powers of participating higher education institutions; interest rates Section 21. Notwithstanding any other provision of law, any participating institution for higher education shall have the power to borrow money from the Authority, make education loans, enter into tuition agreements, participate in savings programs and take all other actions and do such things as are necessary or convenient to consummate the transactions contemplated under this chapter. It shall be lawful for the Authority to establish, charge, contract for and receive any amount or rate of interest or compensation with respect to authority loans or education loans and it shall also be lawful, notwithstanding any other provision of law, to make authority loans or education loans at a rate of interest which may, during the life of such loans, be varied or revised upon such terms or conditions as may be established by the Authority. It shall also be lawful for any institution of higher education to charge, contract for and receive any amount or rate of interest or compensation, including amounts or rates of interest which may be varied or revised upon such terms or conditions as may be established by the institution, with respect to education loans.

M.G.L. c. 15C, § 22 Employees; social security; security interests in revenues and receipts; priority

c. 15C, § 22. Employees; social security; security interests in revenues and receipts; priority Section 22. The Authority may take such action as it deems appropriate to enable its employees to come within the provisions and obtain the benefits of the Federal Social Security Act. If the employees of the Authority shall come within the provisions of said social security act, their employment shall be included in the term ''employment' as used in sections one to seven, inclusive, of chapter one hundred and fifty-one A. Notwithstanding any provisions of chapter one hundred and six or of any other provision of law, the Authority by the filing of financing statements as provided in said chapter one hundred and six, may perfect security interests in revenues and receipts of participating institutions for higher education, whether in the form of proceeds of accounts receivable or contract rights, interest and principal payable on education loans or otherwise, and in any rights to receive such revenues and receipts, and such perfected security interests shall take priority over any subsequently perfected security interests in such revenues, receipts or rights or in the accounts receivable, payments of interest or principal, goods, contract rights, or other rights or personal property giving rise to such revenues, receipts or rights provided that the financing statements filed by the Authority contain a reference to this section.

M.G.L. c. 15C, § 22A Civil actions; liability, losses, expenses; insurance; limitation of actions

c. 15C, § 22A. Civil actions; liability, losses, expenses; insurance; limitation of actions Section 22A. The Authority shall be liable on all claims made as a result of the activities, whether ministerial or discretionary, of any member, officer, or employee of the Authority acting as such, except for willful dishonesty or intentional violation of the law, in the same manner and to the same extent as a private person under like circumstances; provided, however, that the Authority shall not be liable to levy or execution on any real or personal property to satisfy judgment, for interest prior to judgment, for punitive damages or for any amount in excess of one hundred thousand dollars. No person shall be liable to the commonwealth, to the Authority or to any other person as a result of his activities, whether ministerial or discretionary, as a member, officer or employee of the Authority except for willful dishonesty or intentional violation of the law; provided, however, that such person shall provide reasonable cooperation to the Authority in the defense of any claim. Failure of such person to provide reasonable cooperation shall cause him to be jointly liable with the Authority, to the extent that such failure prejudiced the defense of the action. The Authority may indemnify or reimburse any person, or his personal representative, for losses or expenses, including legal fees and costs, arising from any claim, action, proceeding, award, compromise, settlement or judgment resulting from such person's activities, whether ministerial or discretionary, as a member, officer or employee of the Authority; provided that the defense of settlement thereof shall have been made by counsel approved by the Authority. The Authority may procure insurance for itself and for its members, officers and employees against liabilities, losses and expenses which may be incurred by virtue of this section or otherwise. No civil action hereunder shall be brought more than three years after the date upon which the cause thereof accrued.

M.G.L. c. 15C, § 23 Powers granted supplemental and additional to other laws; supervision or regulation of powers

c. 15C, § 23. Powers granted supplemental and additional to other laws; supervision or regulation of powers Section 23. The provisions of this chapter shall be deemed to provide a complete, additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers granted by other laws; provided the issuance of revenue bonds or notes and revenue refunding bonds or notes under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of bonds or notes including, particularly, chapter one hundred and six. Except as otherwise expressly provided in this chapter, none of the powers granted to the Authority under the provisions of this chapter shall be subject to the supervision or regulation or require the approval or consent of any municipality or political subdivision or any department, division, commission, board, body, bureau, official or agency thereof or of the commonwealth.

M.G.L. c. 15C, § 24 New England Education Loan Marketing Corporation as separate entity

c. 15C, § 24. New England Education Loan Marketing Corporation as separate entity Section 24. This chapter shall be independent of and in addition of the authority of the New England Education Loan Marketing Corporation established by section one hundred and ninety-one of chapter three hundred and fifty-one of the acts of nineteen hundred and eighty-one.

M.G.L. c. 15C, § 25 Construction of law

c. 15C, § 25. Construction of law Section 25. The chapter, being necessary for the welfare of the commonwealth and its inhabitants, shall be liberally construed to effect the purposes hereof.

M.G.L. c. 15C, § 26 Bankruptcy of borrower

c. 15C, § 26. Bankruptcy of borrower Section 26. The obligations of a borrower under the provisions of this chapter shall not be subject to discharge as a result of bankruptcy proceedings.

M.G.L. c. 15C, § 27 Rights and properties of Authority upon dissolution, liquidation or other termination

c. 15C, § 27. Rights and properties of Authority upon dissolution, liquidation or other termination Section 27. Upon dissolution, liquidation or other termination of the Authority, all rights and properties of the Authority shall pass to and be vested in the commonwealth, subject to the rights of lienholders and other creditors. In addition, any net earnings of the Authority, beyond that necessary for retirement of any indebtedness or to implement the public purpose or purposes or program of the commonwealth, shall not inure to the benefit of any person other than the commonwealth.

M.G.L. c. 15C, § 28 Severability

c. 15C, § 28. Severability Section 28. The provisions of this act are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.

M.G.L. c. 15C, § 29 Achieving a better life experience program; ABLE account; qualified disability expenses; annual report

c. 15C, § 29. Achieving a better life experience program; ABLE account; qualified disability expenses; annual report Section 29. (a) As used in this section the following words shall, unless the context clearly requires otherwise, have the following meanings:— ''Achieving a better life experience account'' or ''ABLE account'', a savings and qualified disabilities expense account established and maintained by the authority, or a designated administrator, pursuant to this section and its implementing regulations for the purposes of qualified disability expenses. ''Designated administrator'', any corporation whose powers and privileges are provided for in any general or special law, whether for profit or not, designated by the authority for the purpose of administering ABLE accounts. ''Disability verification'', (i) a ''disability certification'' as defined under 26 U.S.C. 529A and applicable federal regulations and federal regulatory guidance; or (ii) a verification, to the authority or its designated administrator, by the designated beneficiary or the parent or guardian of the designated beneficiary that: (A) shall include a copy of the designated beneficiary's diagnosis, signed by a physician or a licensed clinical psychologist, that shall specify that the person is an individual with a disability; and (ii) the designated beneficiary is either: (1) receiving benefits under the supplemental security income program under Title XVI of the Social Security Act or whose benefits under that program are suspended for a reason other than misconduct; (2) for purposes of Title XIX of the Social Security Act, deemed to be or treated as receiving benefits from the office of Medicaid under the supplemental security income program under Title XVI of the Social Security Act or whose benefits under such program have been suspended for a reason other than misconduct; or (3) receiving disability benefits under Title II of the Social Security Act. ''Individual with a disability'', an individual who, regardless of age, has a medically determinable physical or mental impairment, which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, or is blind. ''Physician'', a physician meeting the criteria of section 1861(r)(1) of the Social Security Act. ''Qualified disability expenses'', expenses made for the benefit of an individual with a disability or for the benefit of a special needs trust established for the benefit of such an individual. (b) There shall be within the authority, the achieving a better life experience program for the purposes of administering ABLE accounts established to encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities; provided, however, that notwithstanding any other provision of this section, the authority shall establish and administer the program in accordance with 26 U.S.C. 529A to ensure that the program constitutes a qualified ABLE program as defined in said 26 U.S.C. 529A. Under the program, a person may make contributions to an ABLE account to meet the qualified disability expenses of the designated beneficiary of the account. (c) For the purposes of this section and subparagraph (17) of paragraph (a) of Part B of section 3 of chapter 62 the following expenses shall be qualified disability expenses if such expenses are made for the benefit of an individual with a disability who is a designated beneficiary and the expenses are related to such disability: (1) expenses for education, including tuition for pre-school through post-secondary education, which shall include higher education expenses, as defined by 26 U.S.C. § 529(e)(3)(A), and expenses for books, supplies and educational materials related to preschool and secondary education, tutors and special education services; (2) expenses for a primary residence, including rent, purchase of a primary residence or an interest in a primary residence, mortgage payments, real property taxes, and utility charges; (3) expenses for transportation, including the use of mass transit, the purchase or modification of vehicles and moving expenses; (4) expenses related to obtaining and maintaining employment, including job-related training, assistive technology and personal assistance supports; (5) expenses for health and wellness, including premiums for health insurance, mental health, medical, vision and dental expenses, habilitation and rehabilitation services, durable medical equipment, therapy, respite care, long-term services and supports, nutritional management, communication services and devices, adaptive equipment, assistive technology and personal assistance; (6) expenses for financial management and administrative services, legal fees, expenses for oversight and monitoring; (7) expenses for home improvements and modifications, maintenance and repairs at a primary residence; (8) expenses for a funeral or burial; (9) expenses for assistive technology and personal support with respect to any item described in this section; or (10) any other qualified disability expense approved by the Internal Revenue Service pursuant to 26 U.S.C. 529A. (d) A person may make contributions to an ABLE account to meet the qualified disability expenses of the designated beneficiary of the account; provided that the account and contributions meet the other requirements of this section and regulations promulgated by the authority. (e) An ABLE account shall be a qualified disabilities expense account if: (1) it provides that purchases or contributions may only be made in cash; (2) provides separate accounting for each designated beneficiary; (3) provides that any contributor to, or designated beneficiary under, such program may not directly or indirectly direct the investment of any contributions to the program or any earnings thereon; and (4) provides adequate safeguards to prevent contributions on behalf of a designated beneficiary in excess of those necessary to provide for the qualified disability expenses of the beneficiary. (f) The authority, or its designated administrator, shall treat an individual as an individual with a disability if the person files a disability verification with the authority or such designated administrator or if the individual otherwise constitutes an eligible individual pursuant to 26 U.S.C. 529A. (g) The authority shall file an annual report with the department of developmental services, the joint committee on children, families and persons with disabilities and the house and senate committees on ways and means on the usage of ABLE accounts. The report shall include, but not be limited to: (1) the number of people with an ABLE account; (2) the total amount of contributions to such accounts; (3) the total amount and nature of distributions from such accounts; and (4) issues relating to the abuse of such accounts. (h) The authority may promulgate regulations and enter into agreements to implement this section; provided, however, that the authority shall not issue any regulation or enter into an agreement that would preclude the program established under subsection (b) from constituting a qualified ABLE program, as defined in 26 U.S.C. section 529A.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter15CFetched: 10/20/2026