Kentucky Statutes 164A.050 – Kentucky Higher Education Student Loan Corporation — Establishment — Organization — Terms — Duties — Removal — Expenses — Relationship with other educational entities
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(1) There is hereby created and established an independent de jure municipal corporation and political subdivision of the Commonwealth of Kentucky which shall be a body corporate and politic to be known and identified as the Kentucky Higher Education Student Loan Corporation.
(2) The Kentucky Higher Education Student Loan Corporation is created and established as an independent de jure municipal corporation and political subdivision of the Commonwealth of Kentucky to perform essential governmental and public functions and purposes in improving and otherwise promoting the educational opportunities of the citizens and inhabitants of the Commonwealth of Kentucky and other qualified students by a program of financing, making, and purchasing of student loans.
(3) (a) Subject to paragraph (b) of this subsection, the corporation shall be governed by a board of directors consisting of:
1. Eight (8) voting members chosen from the general public residing in the
Commonwealth of Kentucky; and
2. Seven (7) voting members of the board of directors of the Kentucky Higher Education Assistance Authority appointed by the Governor pursuant to KRS § 164.746(1)(a)1., who shall serve terms of office on the corporation board of directors coextensive with their respective terms of office on the Kentucky Higher Education Assistance Authority board of directors.
(b) Upon resignation or expiration of the term of an appointed member of the board of the corporation and the Kentucky Higher Education Assistance Authority, that member’s position shall be abolished to reduce the combined number of appointed members of the boards of the corporation and the Kentucky Higher Education Assistance Authority to ten (10) members.
(c) In addition, the president of the Council on Postsecondary Education, the secretary of the Finance and Administration Cabinet, the president of the Association of Independent Kentucky Colleges and Universities, the State Treasurer, and the commissioner of education, or their designees who shall be another official of the same cabinet or agency, shall serve as ex officio voting members.
(4) The Governor shall appoint directors according to subsection (3)(a)1. of this section from nominees submitted by the Governor’s Higher Education Nominating Committee under KRS § 164.005 to take office and to exercise all powers thereof immediately. The terms shall be staggered and shall be for a period of four (4) years each. Each director shall serve for the appointed term and, except as provided in subsection (3)(b) of this section, shall serve until a successor has been appointed and has duly qualified.
(5) Except as provided in subsection (3)(b) of this section, in the event of a vacancy, the Governor may appoint a replacement director from nominees submitted by the
Governor’s Higher Education Nominating Committee under KRS § 164.005 who shall hold office during the remainder of the term so vacated.
(6) The Governor may remove any director from the general public in case of incompetency, neglect of duties, gross immorality, or malfeasance in office; and may thereupon declare such office vacant and may appoint a person to fill such vacancy as provided in other cases of vacancy.
(7) The board shall elect from its voting membership a chair, chair-elect, and secretary- treasurer. The executive director of the Kentucky Higher Education Assistance Authority shall serve as executive director of the corporation.
(8) The executive director shall administer, manage, and direct the affairs and business of the corporation, subject to the policies, control, and direction of the board of directors of the corporation. The secretary-treasurer of the corporation shall keep a record of the proceedings of the corporation and shall be custodian of all books, documents, and papers filed with the corporation, the minute book or journal of the corporation, and its official seal. The secretary-treasurer may copy all minutes and other records and documents of the corporation and give certificates under the official seal of the corporation to the effect that such copies are true copies and all persons dealing with the corporation may rely upon such certificates.
(9) A majority of the board of directors of the corporation shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes notwithstanding the existence of any vacancies in respect of the board of directors.
(10) Official actions may be taken by the corporation at meetings duly called by the chair upon three (3) days’ written notice to each director or upon the concurrence of at least a majority of the directors. In lieu of personal attendance by members of the board of directors at the same location, the board of directors may conduct meetings by teleconference or other available technological means suitable for conducting its business. Meetings of the board shall be open and accessible to the public in accordance with KRS § 61.805 to KRS § 61.850, and any alternate method of conducting a meeting in lieu of personal attendance shall ensure public access.
(11) Directors, except officers or employees of the state, shall receive one hundred dollars ($100) compensation per day for their services and shall be entitled to payment of any reasonable and necessary expense actually incurred in discharging their duties under this chapter.
(12) Recognizing that the corporation and the Kentucky Higher Education Assistance Authority are governed by identical boards of directors and managed by a common executive director and otherwise share staff functions, the two (2) organizations shall provide technical, clerical, and administrative assistance to each other and for the Asset Resolution Corporation, the Kentucky Educational Savings Plan Trust, and the Commonwealth postsecondary education prepaid tuition trust fund, together with necessary office space and personnel, and shall assist each other in all ways by the performance of any and all actions which may be useful or beneficial in the performance of their public functions.
(13) The corporation shall enter into contracts with the Kentucky Higher Education
Assistance Authority, the Asset Resolution Corporation, the Kentucky Educational
Savings Plan Trust, and the Commonwealth postsecondary education prepaid tuition trust fund as may be proper and appropriate in respect to services which may include but not be limited to the servicing and collection of student loans or to facilitate the common administration, operation, and management of the contracting entities.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 176, sec. 2, effective June 29, 2023. — Amended
2012 Ky. Acts ch. 84, sec. 2, effective July 12, 2012. — Amended 2004 Ky. Acts ch.
111, sec. 7, effective July 13, 2004. — Amended 2003 Ky. Acts ch. 180, sec. 10, effective June 24, 2003. — Amended 2002 Ky. Acts ch. 253, sec. 2, effective July 15,
2002. — Amended 1998 Ky. Acts ch. 152, sec. 1, effective July 15, 1998; and ch.
282, sec. 1, effective July 15, 1998. — Amended 1997 (1st Extra. Sess.) Ky. Acts ch.
1, sec. 135, effective May 30, 1997. — Amended 1994 Ky. Acts ch. 91, sec. 5, effective March 22, 1994; and ch. 447, sec. 5, effective April 11, 1994. — Amended
1988 Ky. Acts ch. 271, sec. 1, effective July 15, 1988. — Created 1978 Ky. Acts ch.
387, sec. 5, effective June 17, 1978.
(2) The Kentucky Higher Education Student Loan Corporation is created and established as an independent de jure municipal corporation and political subdivision of the Commonwealth of Kentucky to perform essential governmental and public functions and purposes in improving and otherwise promoting the educational opportunities of the citizens and inhabitants of the Commonwealth of Kentucky and other qualified students by a program of financing, making, and purchasing of student loans.
Terms Used In Kentucky Statutes 164A.050
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Ex officio: Literally, by virtue of one's office.
- Quorum: The number of legislators that must be present to do business.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(3) (a) Subject to paragraph (b) of this subsection, the corporation shall be governed by a board of directors consisting of:
1. Eight (8) voting members chosen from the general public residing in the
Commonwealth of Kentucky; and
2. Seven (7) voting members of the board of directors of the Kentucky Higher Education Assistance Authority appointed by the Governor pursuant to KRS § 164.746(1)(a)1., who shall serve terms of office on the corporation board of directors coextensive with their respective terms of office on the Kentucky Higher Education Assistance Authority board of directors.
(b) Upon resignation or expiration of the term of an appointed member of the board of the corporation and the Kentucky Higher Education Assistance Authority, that member’s position shall be abolished to reduce the combined number of appointed members of the boards of the corporation and the Kentucky Higher Education Assistance Authority to ten (10) members.
(c) In addition, the president of the Council on Postsecondary Education, the secretary of the Finance and Administration Cabinet, the president of the Association of Independent Kentucky Colleges and Universities, the State Treasurer, and the commissioner of education, or their designees who shall be another official of the same cabinet or agency, shall serve as ex officio voting members.
(4) The Governor shall appoint directors according to subsection (3)(a)1. of this section from nominees submitted by the Governor’s Higher Education Nominating Committee under KRS § 164.005 to take office and to exercise all powers thereof immediately. The terms shall be staggered and shall be for a period of four (4) years each. Each director shall serve for the appointed term and, except as provided in subsection (3)(b) of this section, shall serve until a successor has been appointed and has duly qualified.
(5) Except as provided in subsection (3)(b) of this section, in the event of a vacancy, the Governor may appoint a replacement director from nominees submitted by the
Governor’s Higher Education Nominating Committee under KRS § 164.005 who shall hold office during the remainder of the term so vacated.
(6) The Governor may remove any director from the general public in case of incompetency, neglect of duties, gross immorality, or malfeasance in office; and may thereupon declare such office vacant and may appoint a person to fill such vacancy as provided in other cases of vacancy.
(7) The board shall elect from its voting membership a chair, chair-elect, and secretary- treasurer. The executive director of the Kentucky Higher Education Assistance Authority shall serve as executive director of the corporation.
(8) The executive director shall administer, manage, and direct the affairs and business of the corporation, subject to the policies, control, and direction of the board of directors of the corporation. The secretary-treasurer of the corporation shall keep a record of the proceedings of the corporation and shall be custodian of all books, documents, and papers filed with the corporation, the minute book or journal of the corporation, and its official seal. The secretary-treasurer may copy all minutes and other records and documents of the corporation and give certificates under the official seal of the corporation to the effect that such copies are true copies and all persons dealing with the corporation may rely upon such certificates.
(9) A majority of the board of directors of the corporation shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes notwithstanding the existence of any vacancies in respect of the board of directors.
(10) Official actions may be taken by the corporation at meetings duly called by the chair upon three (3) days’ written notice to each director or upon the concurrence of at least a majority of the directors. In lieu of personal attendance by members of the board of directors at the same location, the board of directors may conduct meetings by teleconference or other available technological means suitable for conducting its business. Meetings of the board shall be open and accessible to the public in accordance with KRS § 61.805 to KRS § 61.850, and any alternate method of conducting a meeting in lieu of personal attendance shall ensure public access.
(11) Directors, except officers or employees of the state, shall receive one hundred dollars ($100) compensation per day for their services and shall be entitled to payment of any reasonable and necessary expense actually incurred in discharging their duties under this chapter.
(12) Recognizing that the corporation and the Kentucky Higher Education Assistance Authority are governed by identical boards of directors and managed by a common executive director and otherwise share staff functions, the two (2) organizations shall provide technical, clerical, and administrative assistance to each other and for the Asset Resolution Corporation, the Kentucky Educational Savings Plan Trust, and the Commonwealth postsecondary education prepaid tuition trust fund, together with necessary office space and personnel, and shall assist each other in all ways by the performance of any and all actions which may be useful or beneficial in the performance of their public functions.
(13) The corporation shall enter into contracts with the Kentucky Higher Education
Assistance Authority, the Asset Resolution Corporation, the Kentucky Educational
Savings Plan Trust, and the Commonwealth postsecondary education prepaid tuition trust fund as may be proper and appropriate in respect to services which may include but not be limited to the servicing and collection of student loans or to facilitate the common administration, operation, and management of the contracting entities.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 176, sec. 2, effective June 29, 2023. — Amended
2012 Ky. Acts ch. 84, sec. 2, effective July 12, 2012. — Amended 2004 Ky. Acts ch.
111, sec. 7, effective July 13, 2004. — Amended 2003 Ky. Acts ch. 180, sec. 10, effective June 24, 2003. — Amended 2002 Ky. Acts ch. 253, sec. 2, effective July 15,
2002. — Amended 1998 Ky. Acts ch. 152, sec. 1, effective July 15, 1998; and ch.
282, sec. 1, effective July 15, 1998. — Amended 1997 (1st Extra. Sess.) Ky. Acts ch.
1, sec. 135, effective May 30, 1997. — Amended 1994 Ky. Acts ch. 91, sec. 5, effective March 22, 1994; and ch. 447, sec. 5, effective April 11, 1994. — Amended
1988 Ky. Acts ch. 271, sec. 1, effective July 15, 1988. — Created 1978 Ky. Acts ch.
387, sec. 5, effective June 17, 1978.