53B-12-104 - Guarantee Fund -- Sources -- Use -- Valuation and restoration of assets -- Other funds.
53B-12-104. Guarantee Fund -- Sources -- Use -- Valuation and restoration ofassets -- Other funds.
(1) The authority shall establish the Utah Higher Education Assistance AuthorityGuarantee Fund from the following sources:
(a) insurance premiums;
(b) money appropriated and made available by the state for the purpose of the guaranteefund;
(c) money directed by the authority to be transferred to the guarantee fund; and
(d) other money made available to the authority for the purpose of the guarantee fundfrom other sources.
(2) (a) Money held in the guarantee fund shall be used only for payments required underthe authority's guarantee agreements and for other purposes authorized by applicable federalregulations.
(b) Income or interest earned by the investment of money held in the guarantee fundremains in the fund.
(c) The authority may provide by resolution or guarantee agreement that it may notguarantee a loan if the assets of the fund are less than 1% of the unpaid principal amountoutstanding upon all loans guaranteed by the fund, or a greater amount as determined by theauthority.
(d) In computing the assets of the fund for the purposes of this section, securities arevalued at par, cost, or by such other method of valuation as the authority may provide byresolution or agreement.
(e) In the event assets in the fund are less than 1%, or a greater amount as determined bythe authority under Subsection (2)(c), the chairman of the authority shall annually, before thesecond day of December, certify to the governor and to the Director of Finance the amountsrequired to restore the assets of the fund to the required amount. The governor may request anappropriation of the certified amount from the Legislature in order to restore the required amountto the fund.
(3) The authority may create and establish other subfunds as are necessary or desirablefor its purposes.
Amended by Chapter 324, 2010 General Session