Section 164A.050 - Kentucky Higher Education Student Loan Corporation - Establishment - Organization - Terms - Duties - Removal - Expenses - Relationship with other educational entities(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) The corporation shall be governed by a board of directors consisting of:1.Ten (10)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), who shall serve terms of office on the corporation boardcoextensive with their respective terms of office on the Kentucky Higher Education Assistance Authority board; and
2. The secretary of the Finance and Administration Cabinet, or a designee who shall be another official of the same cabinet, who shall serve as an ex officio voting member.(b) The president of the Council on Postsecondary Education, 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 nonvoting advisors to the board.(4) The Governor shall appoint directors according to subsection (3)(a)1. of this section from nominees submitted by the Governor's PostsecondaryEducation 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 andshall serve until a successor has been appointed and has duly qualified.(5) In the event of a vacancy, the Governor may appoint a replacement director from nominees submitted by the Governor's PostsecondaryEducation 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 boardof 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 boardof 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 onthe board.(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 boardat the same location, the boardmay 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 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 the same board members appointed by the Governorand 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.Amended by 2024 Ky. Acts ch. TBD,§ 2, eff. 3/14/2024.Amended by 2023 Ky. Acts ch. 176,§ 2, eff. 6/28/2023.Amended by 2012 Ky. Acts ch. 84,§ 2, eff. 7/11/2012. Amended 2004, Ky. Acts ch. 111, sec. 7, effective 7/13/2004. -- Amended 2003, Ky. Acts ch. 180, sec. 10, effective 6/24/2003. -- Amended 2002, Ky. Acts ch. 253, sec. 2, effective 7/15/2002. -- Amended 1998, Ky. Acts ch. 152, sec. 1, effective 7/15/1998; and ch. 282, sec. 1, effective 7/15/1998. -- Amended 1997, (1st Extra. Sess.) Ky. Acts ch. 1, sec. 135, effective 5/30/1997. -- Amended 1994 Ky. Acts ch. 91, sec. 5, effective 3/22/1994; and ch. 447, sec. 5, effective 4/11/1994. -- Amended 1988 Ky. Acts ch. 271, sec. 1, effective 7/15/1988. --Created 1978 Ky. Acts ch. 387, sec. 5, effective 6/17/1978.