Section 21-21A-4 - Nonprofit guarantee corporation; authorization; members; terms; meetings; bylaws.
21-21A-4. Nonprofit guarantee corporation; authorization; members; terms; meetings; bylaws.
A. A majority of the four-year institutions of higher education may form, pursuant to the provisions of the Nonprofit Corporation Act [53-8-1 NMSA 1978], a nonprofit corporation, separate and apart from the state, whose function shall be to improve the educational opportunities of qualified persons by insuring educational loans in accordance with the bylaws adopted by the corporation. If a nonprofit guarantee corporation is formed pursuant to this section, for the purposes of the federal Higher Education Act of 1965, as amended, it is hereby designated as the single nonprofit corporation authorized to provide a statewide educational loan program.
B. The corporation shall be governed by and all of its functions, powers and duties shall be exercised by a board of directors. The board shall consist of five members as follows:
(1) one member shall be the chairman of the board of directors of the foundation;
(2) one member shall be the executive director of the commission on higher education;
(3) two members who shall be appointed originally by the governor shall be officers or directors of financial institutions located in New Mexico; and
(4) one member who shall be appointed originally by the governor shall be a representative of the general public.
C. Of the members appointed originally by the governor, not more than two members serving at any one time shall be members of the same political party. The original appointments by the governor shall be made so that the term of one member shall expire on June 30, 1982 and the terms of the other two members shall expire respectively on June 30 of 1984 and 1986. Thereafter, appointments shall be made by the board for terms of four years in such a manner that terms of not more than two members shall expire on June 30 of each even-numbered year. A vacancy shall be filled by appointment by the board for the unexpired term.
D. The board shall elect a chairman and such other officers as it deems necessary.
E. Board members shall receive no compensation for their services but may be reimbursed on a per diem and mileage basis for actual and necessary expenses reasonably incurred in the performance of their duties as board members in an amount not exceeding the amount authorized by law for nonsalaried public officers of governmental entities of the state.
F. Board meetings shall be open to the public. The board shall adopt bylaws governing board meetings consistent with the provisions of the Open Meetings Act [10-15-1 NMSA 1978].
G. The board shall adopt bylaws, in accordance with the provisions of the Nonprofit Corporation Act, governing the conduct of the corporation in the performance of its duties under the Educational Assistance Act [21-21A-1 NMSA 1978] and the federal Higher Education Act of 1965, as amended.
H. Officers, other than board members, and employees of the corporation may serve simultaneously as officers and employees of the foundation, but no additional compensation may be paid for such services.