54-17-25. Bonds authorized - Establishment of secondary market program

54-17-25. Bonds authorized - Establishment of secondary market program

Whenever the industrial commission decides that it is in the public interest to diminish the

investment of state funds in United States government guaranteed or reinsured or North Dakota

guaranteed student loans, that it will be difficult to divest the state of appreciable amounts of

such loans by piecemeal offering to the investing and saving public, that business conditions are

favorable to a state-sponsored program to consolidate state-held student loans, and to enlarge

private participation in such loans, or that the public will otherwise benefit, the commission may

by plenary resolution duly adopted in accordance with the provisions hereof authorize

preparation, sale, and issuance of revenue bonds of North Dakota in such amounts and at such

times and in such form, which may include the issuance of bonds the interest income on which

is subject to federal income taxes, as the commission shall determine to be for the public good.

The industrial commission may issue subordinate or residual bonds whenever the industrial

commission determines that it is appropriate or expedient to do so and the bonds may contain

such terms and provisions as the commission may determine. The commission may refund and

refinance the bonds from time to time as often as it is advantageous and in the public interest to

do so. The bonds shall be a charge upon a sufficient designated portion of the resources of the

student loan trusts, subject only to necessary administrative expenses of the trusts duly

appropriated out of the interest earning resources thereof. The bonds may bear such rate or

rates of interest as the commission may provide. The bonds must have all of the qualities and

incidents of negotiable paper and are not subject to taxation by the state of North Dakota or by

any county, municipality, or political subdivision therein. The bonds must be payable solely out

of the separate resources generated respectively from collection of payments on and earnings

and proceeds of United States government guaranteed or reinsured or North Dakota

guaranteed student loans, and must respectively so recite. They are not indebtedness of the

state of North Dakota or of any agency, board, department, or officer or agent thereof. Without

limiting the foregoing, the commission may request the organization of a nonprofit corporation

meeting the requirements of the Internal Revenue Code of 1954, as amended and redesignated

as the Internal Revenue Code of 1986 [Pub. L. 99-54], and as it may be amended from time to

time, and enter into one or more agreements with such corporation providing for the

establishment of a secondary market program in the state of North Dakota for the acquisition by

the corporation of such loans made pursuant to title IV, part B of the Higher Education Act of

1965 [Pub. L. 89-329; 79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; 20 U.S.C. 1001 et seq.],

as amended through December 31, 1996, as the commission shall, in its discretion, deem

advisable.