136A.16 POWERS AND DUTIES OF OFFICE.
    Subdivision 1. Designation. Notwithstanding chapter 16C, the Minnesota Office of Higher
Education is designated as the administrative agency for carrying out the purposes and terms of
sections 136A.15 to 136A.1702. The office may establish one or more loan programs.
    Subd. 2. Rules. The office shall adopt policies and prescribe appropriate rules to carry out
the purposes of sections 136A.15 to 136A.1702. The policies and rules except as they relate to
loans under section 136A.1701 must be compatible with the provisions of the National Vocational
Student Loan Insurance Act of 1965 and the provisions of title IV of the Higher Education Act of
1965, and any amendments thereof.
    Subd. 3. Loan amounts. The office may make loans in amounts not to exceed the maximum
amount provided in the Higher Education Act of 1965 and any amendments thereof except
that the limitation shall not apply to loans under section 136A.1701. The office may establish
procedures determining the loan amounts for which students are eligible.
    Subd. 4. Lenders. The office may contract with or enter into agreements with eligible
lenders for the purpose of making loans to eligible students in accordance with the policies
and rules of the office.
    Subd. 5. Agencies. The office may contract with guarantee agencies, insurance agencies,
collection agencies, or any other person, to carry out the purposes of sections 136A.15 to
136A.1702.
    Subd. 6. Insurance. The office shall be empowered to charge for insurance on each loan a
premium, payable each year in advance. The premiums shall not be in an amount in excess of
the premium in the federal regulations which govern the vocational and higher education loan
program except that the limitation shall not apply to loans under section 136A.1701. Premium
fees shall be available to the office without fiscal year limitation for the purposes of making loans
and meeting expenses of administering the loan programs.
    Subd. 7. Funds. The office may apply for, receive, accept, and disburse federal funds, as
well as funds from other public and private sources, made available to the state for loans or as
administrative moneys to operate student loan programs. In making application for funds, it may
comply with all requirements of state and federal law and rules and regulations, and enter into the
contracts necessary to enable it to receive, accept, and administer such funds.
    Subd. 8. Investment. Money made available to the office that is not immediately needed
for the purposes of sections 136A.15 to 136A.1702 may be invested by the office. The money
must be invested in bonds, certificates of indebtedness, and other fixed income securities, except
preferred stocks, which are legal investments for the permanent school fund. The money may
also be invested in prime quality commercial paper that is eligible for investment in the state
employees retirement fund. All interest and profits from such investments inure to the benefit
of the office or may be pledged for security of bonds issued by the office or its predecessor, the
Minnesota Higher Education Coordinating Board.
    Subd. 9. Staff. The office may employ the professional and clerical staff the director deems
necessary for the proper administration of the loan programs established and defined by sections
136A.15 to 136A.1702.
    Subd. 10. Director. Subject to its directives and review, the office may delegate to the
director the responsibility for issuance of public information concerning provisions of sections
136A.15 to 136A.1702, for design of loan application forms, and for prescribing procedures for
submission of applications for loans.
    Subd. 11.[Repealed, 1995 c 212 art 2 s 22]
    Subd. 12. Records. The office shall establish and maintain appropriate accounting and
related records.
    Subd. 13. Subject to suit. The office may sue and be sued.
    Subd. 14. Notes. The office may sell at public or private sale, at the price or prices determined
by the office, any note or other instrument or obligation evidencing or securing a loan made by the
office or its predecessor, the Minnesota Higher Education Coordinating Board.
    Subd. 15. Letters of credit; surety. The office may obtain municipal bond insurance, letters
of credit, surety obligations, or similar agreements from financial institutions.
History: 1967 c 615 s 1; 1967 c 894 s 3; 1969 c 6 s 23; 1973 c 605 s 5,6; 1975 c 271 s 6;
1977 c 384 s 4-7; 1981 c 300 s 3-5; 1983 c 258 s 47; 1985 c 248 s 70; 1989 c 293 s 36-41; 1995 c
212 art 3 s 34,59; 1997 c 183 art 3 s 12-15; 1998 c 386 art 2 s 43; 2005 c 107 art 2 s 60