§ 16-57-4 - Creation. - Rhode Island Statutes

SECTION 16-57-4

   § 16-57-4  Creation. – (a) There is authorized, created, and established a public corporation of thestate having a distinct legal existence from the state and not constituting adepartment of state government, which is a governmental agency and publicinstrumentality of the state, to be known as the "Rhode Island higher educationassistance authority" with the powers set forth in this chapter, for thepurposes of guaranteeing eligible loans to students in eligible institutionsand to parents of those students and of administering other programs ofpostsecondary student financial assistance assigned by law to the authority.

   (b) The exercise by the authority of the powers conferred bythis chapter shall be deemed and held to be the performance of an essentialgovernmental function of the state for public purposes. It is the intent of thegeneral assembly by the passage of this chapter to vest in the authority allpowers, authority, rights, privileges, and titles which may be necessary toenable it to accomplish the purposes set forth in this section and this chapterand the powers granted by it shall be liberally construed in conformity withthese purposes.

   (c) The authority and its corporate existence shall continueuntil terminated by law or until the authority shall cease entirely andcontinuously to conduct or be involved in any business in furtherance of itspurposes; provided, that no termination shall take effect so long as theauthority shall have guaranties or other obligations outstanding, unlessadequate provision shall have been made for the payment of the obligationspursuant to the documents securing them or to this law. Upon termination of theexistence of the authority, all its rights and properties shall pass to and bevested in the state. At no time shall the assets or other property of theauthority inure to the benefit of any person or other corporation or entity.