A. Whenever the student loan fund at an institution is inadequate to carry out fully the purpose for which the fund was established, the governing board and president of such institution, with the written consent and approval of the Governor first obtained, are authorized, for the purpose of providing an additional student loan fund, to borrow from such sources and on such terms as may be approved by the Governor an amount not to exceed $ 25,000, and to provide for such extensions or renewals of such loans as may be necessary. Such additional student loan fund shall be used only in making loans to students as provided in this chapter and for no other purpose whatsoever.
B. The repayments and interest accretions to the additional student loan fund shall be used insofar as may be necessary to repay the indebtedness of the institution created by the governing board and president in establishing the additional student loan fund.
C. Such additional amounts may be borrowed as may be deemed necessary by the governing board and president of the institution, with the Governor’s approval, but in no event may the amount of the additional student loan fund, including cash, notes receivable and all amounts heretofore borrowed and not repaid exceed $ 50,000.
D. Accounts shall be kept and reports rendered for each such additional student loan fund in all respects as required by this chapter for student loan fund created by appropriations from the general fund of the state treasury, and the Auditor of Public Accounts shall biennially exhibit in his report the amount of the additional student loan fund at each institution.
1978, c. 745.