HOUSE BILL No. 5915


     April 16, 2002, Introduced by Rep. Caul and referred to the Committee on Employment Relations, Training and Safety.


        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:

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             Sec. 2.  As used in this act:

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

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        loan authority created by section 3.

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

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

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        loans, commercial paper, or other debt obligations evidencing an

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        obligation to repay borrowed money and payable solely from reve-

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        nues and other money pledged by the authority.

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

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

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        agreement securing the bonds.


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

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

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

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        an institution outside the United States comparable to an insti-

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        tution of higher education or to a vocational school  which  THAT

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        is approved by the  state board of education  DEPARTMENT OF

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        CAREER DEVELOPMENT and by the United States secretary of educa-

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        tion for purposes of the guaranteed loan program.

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

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

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

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

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

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        and other debt obligations evidencing loans to students or par-

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

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

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

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

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        guardian.

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

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        the investment profession  which  THAT evaluates and measures

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        securities investment and credit risk.

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

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        enrollment at an eligible institution and who is making suitable

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        progress in his or her education toward obtaining a degree or

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        other appropriate certification in accordance with standards

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        acceptable to the authority.



   05307'01                Final page.