SENATE BILL No. 1291

May 7, 2002, Introduced by Senator HAMMERSTROM and referred to the Committee on

Appropriations.

A bill to amend 1975 PA 222, entitled

"Higher education loan authority act,"

by amending section 2 (MCL 390.1152), as amended by 1987 PA 206.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 2. As used in this act:

2 (a) "Authority" means the Michigan higher education student

3 loan authority created by section 3.

4 (b) "Bonds" means the bonds authorized to be issued by the

5 authority under this act, which may consist of bonds, notes, term

6 loans, commercial paper, or other debt obligations evidencing an

7 obligation to repay borrowed money and payable solely from reve-

8 nues and other money pledged by the authority.

9 (c) "Bond resolution" or "resolution", when used in relation

10 to the issuance of bonds, means either the resolution or trust

11 agreement securing the bonds.

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1 (d) "Eligible institution" means: an institution of higher

2 education; a vocational school; or, with respect to students or

3 their parents who are citizens or nationals of the United States,

4 an institution outside the United States comparable to an insti-

5 tution of higher education or to a vocational school which THAT

6 is approved by the state board of education DEPARTMENT OF

7 CAREER DEVELOPMENT and by the United States secretary of educa-

8 tion for purposes of the guaranteed loan program.

9 (e) "National of the United States" means a person who,

10 though not a citizen of the United States, owes permanent alle-

11 giance to the United States, as defined in section 101(a)(22) of

12 the immigration and nationality act, 8 U.S.C. 1101.

13 (f) "Obligations" or "borrower obligations" means loan notes

14 and other debt obligations evidencing loans to students or par-

15 ents of students which THAT the authority may take, acquire,

16 buy, sell, or indorse under this act and may include a direct or

17 indirect interest in whole or part of the notes or obligations.

18 (g) "Parent" means a biological or adoptive parent or legal

19 guardian.

20 (h) "Standard rating service" means a service recognized in

21 the investment profession which THAT evaluates and measures

22 securities investment and credit risk.

23 (i) "Student" means a person who is enrolled or accepted for

24 enrollment at an eligible institution and who is making suitable

25 progress in his or her education toward obtaining a degree or

26 other appropriate certification in accordance with standards

27 acceptable to the authority.

05307'01 Final page.