164A.020 Definitions

164A.020 Definitions.

The following words and terms, unless the context clearly indicates a different meaning,

shall have the following respective meanings:

(1) "Board" means the board of directors of the corporation.

(2) "Bonds" or "notes" means the bonds or bond anticipation notes authorized to be

issued by the corporation pursuant to this chapter.

(3) "Corporation" means the Kentucky Higher Education Student Loan Corporation, an

independent de jure municipal corporation and political subdivision of the

Commonwealth of Kentucky created to perform essential governmental services.

(4) "Eligible institution" means any educational institution described as an eligible

institution in the federal act which has, if required by the guarantee agency, a

contract in force with the guarantee agency pursuant to the federal act and this

chapter.

(5) "Eligible lender" means the Kentucky Higher Education Assistance Authority, a de

jure political subdivision of the Commonwealth of Kentucky and the corporation

and all other entities described as eligible lenders in the federal act which have in

force a contract with the guarantee agency providing for loan guarantees to be

issued by the guarantee agency to the subject lender under the federal act and this

chapter.

(6) "Federal act" means the Higher Education Act of 1965, as from time to time

amended, codified as 20 U.S.C. secs. 1001 et seq.

(7) "Guarantee agency" means the Kentucky Higher Education Assistance Authority

duly organized and existing pursuant to the statutory laws of the Commonwealth of

Kentucky or any agency authorized as a guarantor pursuant to the federal act.

(8) "Qualified student" means a student who qualifies for an insured student loan under

the federal act.

(9) "Insured student loan" means a loan to a qualified student on which the payment of

principal and interest is at least ninety-five percent (95%) insured by the guarantee

agency and reinsured by the Secretary of Education of the United States in

accordance with the requirements of the federal act, or at least ninety-five percent

(95%) insured as to principal amount by the United States under the federal act or

the Health Professions Educational Assistance Act of 1976, codified as 42 U.S.C.

secs. 294 et seq. as from time to time amended. As used in connection with the

purchase, making, or acquisition of insured student loans by the corporation, the

term insured student loan shall further mean and refer to any contingent interest,

security interest, pledge, commitment, chose in action, or other property interest in

any such loan.