§309-1.5  Authorization of corporation to
acquire educational loan notes.  The governor is authorized to request the
organization of a private not-for-profit corporation to be affiliated with
United Student Aid Funds, Inc., which corporation shall be established and
operated exclusively for the purpose of acquiring student loan notes under the
federal Higher Education Act of 1965, as amended.  The governor is authorized
to request that United Student Aid Funds organize a single private
not-for-profit corporation known as the Secondary Market Services Corp.--Hawaii
to be established and operated exclusively for the purpose of acquiring student
loan notes under the federal Higher Education Act of 1965, as amended.  The
corporation:



(1)  Shall be a not-for-profit corporation organized
under the laws of the State and authorized to do business within the State and
shall be the only not-for-profit corporation organized within the State
requested to conduct a program of acquiring student loan notes;



(2)  Shall be required by its articles of
incorporation and bylaws to devote any income (after payment of expenses, debt
service, and the creation of reserves for the same) to the purchase of
additional student loan notes or to pay over any income to the United States; and



(3)  Is authorized to issue obligations pursuant to
section 103 of the Internal Revenue Code of 1986, as amended.  Those
obligations shall be payable solely from the revenues and assets of the
corporation pledged thereto and shall not constitute a general, limited, or
moral obligation of the State, or any department, agency, or political
subdivision thereof under any constitutional, statutory, or other provision. 
Neither the full faith and credit of the State nor that of any department,
agency, or political subdivision thereof shall be pledged to the payment of the
principal of, or interest on, those obligations and those obligations shall so
state on their face.  Bonds, notes, and other obligations of the corporation
are declared to be issued for a public purpose and to be public
instrumentalities and, together with the income therefrom, shall be exempt from
all state, county, and municipal taxation, except inheritance, transfer, and
estate taxes. [L 1984, c 144, §2; am L 1992, c 89, §1; am L 1995, c 59, §1; am
L 2001, c 56, §1]