§ 6-81-118 - Cash funds -- Sufficient redemption fund required. - Arkansas Statutes

6-81-118. Cash funds -- Sufficient redemption fund required.

(a) All moneys received by the authority of its trustee as repayment of principal or interest, including payments by the United States as subsidies, in payment of the guarantee on guaranteed educational loans made or purchased under the authority of this subchapter or as income on any other investment authorized by this subchapter are hereby specifically declared to be cash funds.

(b) The moneys shall not be deposited in the State Treasury but shall be deposited as required by the agreement or trust indenture for each different series of obligations of the Arkansas Student Loan Authority.

(c) A sufficient amount of such money shall always be made available to any redemption fund securing outstanding obligations of the authority to ensure their payment and interest thereon as they mature.