The General Assembly makes the following findings: For the benefit of the people of Prince George's County, the conduct and increase of their commerce, the protection and enhancement of their welfare, the development of continued prosperity, and the improvement of their health and living conditions, it is essential that this and future generations of youth be given the fullest opportunity to learn and to develop their intellectual and mental capacities and skills; To achieve these ends it is of the utmost importance that residents of Prince George's County who are students attending institutions of higher education have reasonable financial alternatives to enhance their access to such institutions; Reasonable financial access to institutions of higher education will assist such youth in achieving the optimum levels of learning and development of their intellectual and mental capacities and skills; There exists a serious problem in Prince George's County and in this State regarding the ability of students to obtain financing for the cost of education beyond the high school level; Escalating costs of securing such an education have contributed to the difficulties faced by students in attempting to finance an education; Without the public action authorized by this Subtitle, many students who are residents of Prince George's County will be forced to postpone or abandon plans for obtaining additional education; It is in the interests and welfare of the citizens of Prince George's County and the State to provide a means for assisting students to continue their education; Without the public action authorized by this Subtitle, the inability to obtain educational financing will result in declining enrollments of residents of Prince George's County at institutions of higher education; It is necessary to authorize Prince George's County to create a Supplemental Higher Education Loan Authority to encourage the investment of private capital to provide funds for the financing of student loans; and The making of loans, as provided herein, to lending institutions will further the purposes of this Subtitle. The General Assembly declares its legislative purpose to authorize Prince George's County: To provide a measure of assistance and an alternative method to enable students attending institutions of higher education who are residents of Prince George's County and the families of such students appropriately and prudently to finance the cost or a portion of the cost of such higher education; To supplement Federal guaranteed higher education loan programs, other student loan programs, and grant or scholarship programs to provide the needed additional options for the financing of such students' higher education in execution of the public policy recited herein; and To authorize the establishment of the authority for the benefit of the people of Prince George's County and the State, for the improvement of their education, health, and welfare, and for the promotion of the economy. The Authority will be performing an essential governmental function in the exercise of the powers and duties set forth in this Subtitle, and this Subtitle shall be construed liberally to effect its purposes.

Unless the context clearly requires otherwise, in this Subtitle the following words have the meanings indicated: Authority means "Prince George's County Supplemental Higher Education Loan Authority." Authority Loans means loans by the Authority to borrowers or to lending institutions for the purpose of funding education loans. Bond resolution means the resolution or resolutions of the Authority and the indenture or trust agreement, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds. Bonds means bonds, notes, or other evidences of obligation of the Authority issued under this Subtitle, including, without limitation, bond or revenue anticipation notes, notes in the nature of commercial paper, and refunding bonds. Borrower means any person executing an education loan as an obligor thereunder. Council means the County Council of Prince George's County, Maryland. County means the body politic and corporate of the State of Maryland known as Prince George's County, Maryland. County Executive means the chief elected executive official of Prince George's County, Maryland. Cost of Attendance means the tuition and fees applicable to a student, together with the participating institution's estimate of other expenses reasonably related to cost of attendance at that institution including, without limitation, the cost of room and board, transportation, and books and supplies. Default Insurance means insurance insuring education loans, Authority loans, or bonds against default. Default Reserve Fund means a fund established under a bond resolution for the purpose of securing education loans, Authority loans, or bonds. Education Loan means a loan which is made by the Authority or by a lending institution to a borrower in an amount not in excess of the maximum amount specified by the Authority to finance a part or all of a student's cost of attendance at a participating institution. Education Loan Series Portfolio means all education loans made by a specific lending institution which are funded from the proceeds of an Authority loan to the lending institution out of the proceeds of a related specific bond issue through the Authority. Institution means any public or private profit or nonprofit educational institution which provides a program of education beyond the high school level, and: Admits as regular students only individuals having a certificate of graduation from high school or the recognized equivalent of a high school graduation certificate; Provides an educational program for which it awards a Bachelor's Degree, or provides an educational program, admission into which is conditioned upon the prior attainment of a Bachelor's Degree or its equivalent, for which it awards a postgraduate degree, or provides not less than a two-year program which is acceptable for full credit toward such a degree, or offers not less than a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge; Is accredited by a nationally recognized accrediting agency or association or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three (3) institutions which are so accredited; Does not discriminate in the admission of students on the basis of race, color, religion, creed, sex, or national origin; and Has a governing board, or its delegated institutional officials, which possesses final authority in all matters of local control, including educational policy, choice of personnel, determination of program, and financial management. Institution affiliate means any corporation, partnership, joint venture, association, business trust, or similar entity organized under the laws of the United States or any state thereof or under the laws of the District of Columbia that directly or indirectly is controlled by, or is under common control by the same person or entity as, any institution or group of institutions or any other institution affiliate. For purposes of this definition, control means with respect to: A corporation having stock, ownership, directly or indirectly, of more than fifty percent (50%) of the securities (as defined in Section 2(1) of the Securities Act of 1933, as amended) of any class or classes, the holders of which are ordinarily, in the absence of contingencies, entitled to elect a majority of the members of the Board of Directors or other governing body of such corporation; A not for profit corporation not having stock, having the power to elect or appoint, directly or indirectly, a majority of the Board of Directors, trustees, or other governing body of such corporation; or Any other entity, the power to direct the management of such entity through the ownership of at least a majority of its voting securities or the right to designate or elect a majority of the members of the Board of Directors or other governing body. Lending Institution means: An institution that is located within the Washington, D.C. Metropolitan Area and that has been designated by the Authority to be the recipient of an Authority loan; An institution that is located outside of the Washington, D.C. Metropolitan Area that has or reasonably can be expected to have, if designated as a lending institution by the Authority, a substantial number of residents of the County as full-time students and that has been designated by the Authority to be the recipient of any Authority loan; or An institution affiliate controlled by an institution or institutions located within the Washington, D.C. Metropolitan Area or an institution or institutions that has or in the aggregate have, or reasonably can be expected to have, if the institution affiliate controlled by such institution or institutions is designated as a lending institution, a substantial number of residents of the County as full-time students and that has been designated by the Authority to be the recipient of an Authority loan. Loan Funding Deposit means moneys or other property deposited by a lending institution or a participating institution with the Authority or a trustee, in amounts the Authority determines necessary as a condition for an institution's participation in the Authority's programs to: Provide security for bonds; Fund a default reserve fund; Acquire default insurance; and Defray costs of the Authority. Participating Institution means an institution designated by the Authority at which a student's cost of attendance may be paid in whole or in part from the proceeds of an education loan. Person means and includes natural persons, firms, associations, corporations, business trusts, partnerships, and public bodies. State means the State of Maryland, the Governor of the State of Maryland, and any department of or corporation, agency, or instrumentality heretofore or hereafter created, designated, or established by the State of Maryland.

Prince George's County is hereby authorized to create a body corporate and politic to be known as the "Prince George's County Supplemental Higher Education Loan Authority" which shall be authorized to exercise any or all of the powers set forth in this Subtitle within the limitations and upon the terms and conditions herein set forth only upon the enactment by the County Council, the approval by the County Executive, and the taking effect of an ordinance that creates the Authority and irrevocably approves the exercise by the Authority of all powers set forth in this Subtitle within the limitations and upon the terms and conditions herein set forth. Upon the creation of the Authority as authorized in Subsection (a) of this Section, the Authority shall constitute a public instrumentality of Prince George's County, and the exercise by the Authority of the powers set forth in this Subtitle is the performance of an essential public function.

The Prince George's County Supplemental Higher Education Loan Authority shall consist of five (5) members appointed by the County Executive subject to the confirmation of the Council. Each member shall be a resident of the County. The members of the Authority shall be persons of ability, experience, and integrity and shall not be selected as representing or supporting any special interest or interests. The members of the Authority first appointed shall serve for terms expiring on June 30, 1987, 1988, 1989, 1990, and 1991, respectively, and until a successor is appointed and qualifies. On the expiration of the term of any member, a successor shall be appointed for a term of five (5) years and until a successor is appointed and qualifies. The County Executive shall appoint a qualified person to fill any vacancy, subject to the confirmation of the Council. A member appointed to fill a vacancy in an unexpired term shall serve only for the remainder of that term and until a successor is appointed and qualifies. A member of the Authority may be removed by the County Executive for misfeasance, malfeasance or willful neglect of duty or other cause after notice, and with the approval of the Council. Each year the Authority shall elect from among its members: A Chair; A Vice-Chair; and Any other officers it requires. The members of the Authority may not be compensated for their services, but may be reimbursed for actual expenses necessarily incurred in the performance of their duties; and The members of the Authority shall be governed by the provisions of the Maryland Public Ethics Law and shall be required to file annual financial disclosure statements. Each member of the Authority, before entering upon his duties, shall take a Constitutional Oath of Office before the Clerk of the Circuit Court of Prince George's County, the Council, or someone authorized by law to administer oaths, and a record of each such oath shall be filed with the Clerk of the Circuit Court for Prince George's County.

The Authority may appoint an Executive Director and Counsel, and any other officers, none of whom may be members of the Authority. The Executive Director shall: Serve at the pleasure of the Authority; and Receive compensation as fixed by the Authority. The Executive Director or other person designated by resolution of the Authority: Shall keep a record of the proceedings of the Authority; Shall be custodian of all books, documents, and papers filed with the Authority, the minute book or journal of the Authority, and its official seal; and May cause copies to be made of all minutes and other record and documents of the Authority and may give certificates under the official seal of the Authority to the effect that the copies are true copies, and all persons dealing with the Authority may rely upon the certificates. Three members of the Authority shall constitute a quorum. The affirmative vote of a majority of the members present shall be necessary for any action taken by the Authority. A vacancy in the membership of the Authority may not impair the right of a quorum to exercise all the rights and perform all the duties of the Authority. Any action taken by the Authority under this Subtitle may be authorized by resolution at any regular or special meeting and may take effect immediately and need not be published. The Authority may issue bonds for the purpose of making Authority loans or education loans. Bonds issued under this Section shall be obligations of the Prince George's County Supplemental Higher Education Loan Authority only and not of the State or of the County. The bonds authorized to be issued under this Subtitle may be issued without an election referendum or any other proceedings or the happening of any other conditions or things other than those proceedings, conditions, or things which are specified and required by this Subtitle. Bonds issued under this Subtitle shall state on the face of each bond that they represent and constitute an obligation of the Authority only, and do not constitute either a debt of the State of Maryland or of any political subdivision thereof, including the County, within the meaning of the provisions of the Constitution or laws of the State or the Charter of the County, or a pledge of the faith and credit of the State of Maryland or of any political subdivision thereof, including the County. The bonds may not grant to the owners or holders any right to have the Authority or the General Assembly or the Council levy any taxes or appropriate any funds for the payment of principal or interest.

In addition to any other powers granted or duties imposed upon it, the Authority shall: Coordinate activities and consult with the Maryland Higher Education Supplemental Loan Authority; and Have the powers and duties set forth in this Section. In consultation with the Maryland Higher Education Supplemental Loan Authority, the Authority may adopt any rule or regulation necessary to carry out its powers and duties. The Authority may delegate to one or more of its members, or to one or more of its officers, agents and employees, such powers and duties as it may deem proper. The Authority may: Adopt an official seal; Maintain an office at the place or places it may designate; Participate in legal proceedings in the name of the Authority; and Sue and be sued in its own name, plead and be impleaded. The Authority may establish criteria for and guidelines encompassing the types of and qualifications for education loan financing programs which shall include the criteria for determining whether an educational institution qualifies as an "institution" within the meaning of this Subtitle, whether an institution is located within the Washington, D.C. Metropolitan Area, whether an institution or group of institutions has or reasonably can be expected to have, if approved for participation in a program of the Authority, a substantial number of residents of the County as full-time students, and those eligibility standards for borrowers that the Authority determines may be necessary or desirable to effectuate the purposes of this Subtitle and which shall include provisions that each student have a certificate of admission or enrollment at a participating institution, that each student be a resident of Prince George's County, that each borrower satisfy the financial qualifications that the Authority establishes and that each student and each borrower submit to the participating institution information that may be required by the Authority. In establishing criteria for the determination of County residency the Authority may utilize the criteria established by the University of Maryland for the determination of residency, as applicable, or may establish such other or additional criteria as are consistent with law. The Authority may contract with financial institutions and other organizations determined by the Authority to be qualified to provide loan origination and servicing services to provide assistance in prequalifying borrowers for education loans and for servicing and administering education loans and any lending institution's loan series portfolio. Any education loan fee may include a portion to cover the cost of any servicing organization's assistance prorated on a basis deemed fair by the Authority. To insure the marketability of its bonds and the adequacy of the security for the payment of the principal of and interest on its bonds, the Authority may consult with the Maryland Higher Education Supplemental Loan Authority to establish criteria governing: The eligibility of any institution to participate in its program as a participating institution or lending institution; The eligibility of any institution affiliate to participate in its program as a lending institution; The eligibility of students to participate in its program; The making of Authority loans and education loans; Provisions for default; The establishment of default reserve funds; The purchase of default insurance; and Provisions for the establishment of prudent debt service reserves and for the furnishing by lending institutions or participating institutions of such additional guarantees of or other security for education loans, Authority loans, or the Authority's bonds. The Authority may establish limitations on the principal amounts and the terms of education loans, criteria regarding the qualifications and characteristics of borrowers, and procedures for allocating Authority loans and education loans among participating institutions and lending institutions. Any person who knowingly and willfully falsifies or conceals a material fact in connection with an application for funds from the Authority is guilty of a misdemeanor. Each applicant for funds from the Authority shall receive notice from the Authority of the conduct that constitutes a violation of this Section prior to the awarding of any loan. A person convicted under this Section is subject to a fine of not more than Five Thousand Dollars ($5,000) or imprisonment for not more than one (1) year, or both. The Authority may: Issue bonds for any of its corporate purposes and borrow funds as working capital for its operations; Fix, revise, charge and collect rates, fees and charges for the services furnished or to be furnished by the Authority and contract with any person, including financial institutions, loan originators, servicers, administrators, issuers of letters of credit, and insurers; Employ consultants, attorneys, accountants, financial experts, loan processors, bankers, managers, and other employees and agents as may be necessary in its judgment, and fix their compensation; Establish regulations, criteria or guidelines with respect to Authority loans, education loans and education loans series portfolios; Receive and accept from any source and in any form, loans, appropriations, contributions, gifts, or grants for or in aid of any Authority purpose or education loan financing program and, when required, use the funds, property or labor only for the purpose for which it was provided; Make Authority loans to lending institutions and require that the proceeds of the loans be used for making education loans and paying related loan costs and fees; Make education loans to borrowers and require that the proceeds of the loans be used for the payment of the cost of attendance at a participating institution; Charge to and apportion among borrowers, lending institutions and participating institutions its administrative and operating costs and expenses incurred in the exercise of its powers and duties; and Do all acts and things necessary or convenient to carry out its corporate purposes and in such manner and upon such procedures as the Authority may in its discretion from time to time determine or prescribe. Notwithstanding any other provision contained in this Subtitle, the Authority may commingle and pledge as security for a series or issue of bonds: The education loans to be made from the proceeds of such issue, including the education loan series portfolios and some or all future education loan series portfolios of the lending institutions; and The loan funding deposits of lending institutions or participating institutions if education loan series portfolios and other security and moneys set aside in any fund or funds pledged for any series or issue of bonds are held for the sole benefit of the series or issue separate and apart from education loan series portfolios and other security and moneys pledged for any other series or issue of bonds of the Authority. The Authority may: Examine records and financial reports of participating institutions and lending institutions; and Examine records and financial reports of any contractor organization or institution retained by the Authority. The Authority shall require that: Authority loans to lending institutions be used solely to make education loans; Participating institutions require each borrower under an education loan use the proceeds solely for the cost of attendance; and Each borrower certify that proceeds shall be used solely for the cost of attendance.

The Authority may establish guidelines relating to: The deposits of certain moneys, endowments, or properties by participating institutions or lending institutions so as to provide reasonable security for education loans funding programs, Authority loans, education loans, or for bonds; and Guarantees of or contracts to purchase education loans or bonds by lending institutions, participating institutions or by financial institutions or others. A default reserve fund may be established for any series or issue of bonds. The Authority may receive moneys, endowments, properties, and guarantees as it determines appropriate and, if necessary, take title in the name of the Authority or in the name of a lending institution, a participating institution, or a trustee. When the principal of and interest on bonds of the Authority issued to finance the cost of any education loan refinancing program or programs, including any refunding bonds issued to refund or refinance any bonds, have been fully paid and retired or when adequate provision has been made to fully pay and retire the bonds, and all other conditions of the bond resolution authorizing the bonds have been satisfied and the lien created by the bond resolution has been released in accordance with the provisions of this Section, the Authority shall promptly do the things and execute the deeds and conveyances necessary and required to convey any remaining moneys, properties and other assets comprising loan funding deposits to the lending institutions and the participating institutions in proportion to the amounts furnished by the respective institutions.

The Authority may at any time and from time to time issue bonds for any corporate purpose. The bonds of each issue shall be payable solely out of revenues of the Authority, including, without limitation: Principal and interest on Authority loans and education loans; Payments by lending institutions, participating institutions, banks, insurance companies or others pursuant to letters of credit or purchase agreements; Investment earnings from funds or accounts maintained pursuant to a bond resolution or trust agreement; Insurance proceeds; Loan funding deposits; Proceeds of sales of education loans; Proceeds of refunding bonds; and Other fees, charges or revenues of the Authority. Bonds shall be authorized by a bond resolution of the Authority and shall: Bear the date or dates, and mature at a time or times whether as serial bonds or as term bonds or both, not exceeding the year following the last year in which the final payment is due on any education loan made from the proceeds of such bonds, or thirty (30) years from their respective dates of issue, whichever is sooner; Bear interest at a rate or rates determined by the Authority; Be payable at a time or times, in the denominations and form, either coupon or registered or both, and carry the registration and privileges as to conversion and for the replacement of mutilated, lost, or destroyed bonds as the Authority may establish; Be deemed a "security" within the meaning of Section 8-102 of the Commercial Law Article of the Annotated Code of Maryland, whether or not it is either one of a class or series or by its terms is divisible into a class or series of instruments and negotiable for all purposes notwithstanding payment from a limited source, notwithstanding any other law; Be payable in lawful money of the United States or in checks designated in such lawful money at a designated place; Be subject to the terms and redemption that the bond resolution provides; Be executed by the manual or facsimile signatures of the officers of the Authority designated by the Authority; and Be sold in the manner and upon the terms determined by the Authority including private (negotiated) sale and be exempt from the provisions of Sections 8-206 and 8-108 of the State Finance and Procurement Article. Pending preparation of the definitive bonds, the Authority may issue interim receipts or certificates which shall be exchanged for such definitive bonds. Any bond resolution may contain provisions, which shall be a part of the contract with the holders of the bonds to be authorized, as to: Pledging or assigning the revenues derived from the Authority loans and education loans with respect to which such bonds are to be issued; The fees and other charges to be collected and the sums to be raised in each year thereby, and the use, investment, and disposition of such sums; The setting aside of loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof; Limitations on the use of the education loans; Limitations on the purpose to which or the investments in which the proceeds of sale of any issue of bonds then or thereafter to be issued may be applied; Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, other bonds; The refunding or refinancing of outstanding bonds; The procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds the holders of which must consent thereto, and the manner in which consent shall be given; Defining the acts or omissions which shall constitute a default in the duties of the Authority to holders of its obligations and providing the rights or remedies of such holders in the event of a default; Providing for guarantees, pledges or endowments, letters of credit, property or other security, or insurance for the benefit of the holders of the bonds; and Any other matter relating to the bonds which the Authority determines appropriate. No member of the Authority nor any person executing the bonds shall be liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds. The Authority may purchase its bonds out of any available funds and may hold, pledge, cancel, or resell the bonds subject to and in accordance with agreements with bondholders. The Authority may refund or refinance any of its bonds. The Authority may issue bonds for the purpose of purchasing loans from financial institutions which participate in the Federal Government's guaranteed loan program, as long as such activities conform to applicable Federal guidelines.

Any bonds issued under the provisions of this Subtitle may be secured by a trust agreement by and between the Authority, a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State, and other persons, as appropriate. Any trust agreement or bond resolution may: Pledge or assign any revenues to be received by the Authority or proceeds or benefits of any contract and may serve to convey or mortgage or otherwise secure any property or property rights; Contain provisions for protecting and enforcing the rights and remedies of bondholders; Restrict the individual rights of actions by bondholders; and Contain such other provisions as the Authority deems appropriate. Any expense incurred in carrying out the provisions of the trust agreement may be treated as a part of the cost of the operation of an education loan program.

The Authority may fix, revise, charge, and collect fees and charges for its services and operations and may contract with any person in connection therewith without supervision or regulation by the Council or the County Executive or any other department, board, agent, or agency of the County or any unit of State government and without regard to any provision of law other than the provisions of this Subtitle. A pledge by the Authority of revenue as security for an issue of bonds shall be valid and binding from the time when the pledge is made. The revenues pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of any kind in tort, contract or otherwise against the Authority, any lending institution or any participating institution, irrespective of whether the person has notice. No bond resolution, trust agreement, financing statement, continuation statement, or other instrument adopted or entered into by the Authority need be filed or recorded in any public record other than the records of the Authority in order to perfect the lien against third persons, regardless of any contrary provision of public general or public local law. All moneys received by or on behalf of the Authority under this Subtitle, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this Subtitle. Any officer with whom, or any bank or trust company with which, such moneys are deposited shall act as trustee of the moneys and shall hold and apply them for the purposes provided in this Subtitle and any applicable bond resolution or trust agreement.

Except to the extent that their rights are restricted by any applicable bond resolution or trust agreement, any holder of bonds issued under this Subtitle or a trustee under a trust agreement entered into under this Subtitle, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the Laws of Maryland or by any applicable bond resolution or trust agreements.

The Authority may issue bonds to refund any bonds of the Authority then outstanding, including the payment of any redemption premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of the bonds. Refunding bonds may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default and may be issued in one or more series in an amount in excess of that of the bonds to be refunded. The proceeds of any bonds issued for the purpose of refunding outstanding bonds my be applied to the purchase or retirement at maturity or redemption of outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on a date determined by the Authority. Any escrowed proceeds, pending use, may be invested and reinvested in direct obligations of the United States of America or in any other obligations permitted by the bond resolution pursuant to which the refunded bonds were issued, maturing at a time or times appropriate to assure the prompt payment of the principal of and interest and redemption premium, if any, on the outstanding bonds to be refunded. The interest, income, and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding bonds to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of proceeds and interest, income, and profits, if any, earned or realized on the investments shall be returned to the Authority for disposition as provided in the bond resolution pursuant to which the refunded bonds were issued or otherwise in accordance with law. Refunding bonds shall be subject to this Subtitle in the same manner and to the same extent as other bonds issued under this Subtitle.

Except as otherwise provided in this Subtitle or, with respect to the proceeds of the sale of bonds or other moneys held in connection with an issue of bonds, the bond resolution pursuant to which such bonds were issued, the Authority may invest funds in: Direct obligations of the United States; Obligations as to which the timely payment of principal and interest is fully guaranteed by the United States; Obligations of the Federal Intermediate Credit Banks, Federal Banks for Cooperatives, Federal Land Banks, Federal Home Loan Banks, Federal National Mortgage Association, Government National Mortgage Association; Certificates of deposit or time deposits constituting direct obligations of any bank as defined by the laws of this State, however, investments may be made only in those certificates of deposit or time deposits in banks which are insured by the Federal Deposit Insurance Corporation if then in existence; In withdrawable capital accounts or deposits of state or federal chartered savings and loan associations which are insured by the Federal Savings and Loan Insurance Corporation or the Maryland Deposit Insurance Fund Corporation; and With respect to the proceeds of the sale of bonds or other moneys held in connection with an issue of bonds, in such other obligations as shall be permitted by the bond resolution pursuant to which such bonds were issued. Securities may be purchased at such time and at such prices as the Authority determines.

All banks, bankers, trust companies, savings bank and institutions, building, savings and loan associations, investment companies, insurance companies and associations, and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds issued under this Subtitle.

The Authority shall keep full and accurate accounts of its activities and operations and shall annually in the month of January make a report to the County Executive, the Chairman of the Council, and the Maryland Higher Education Supplemental Loan Authority. The report shall cover the preceding fiscal year and shall include a complete operating and financial statement for that year. The Authority shall cause an audit of its books and accounts to be made at least once each year by independent certified public accountants, and the cost thereof shall be paid by the Authority from funds available to it pursuant to this Subtitle. The independent audit required under this Subsection shall be conducted in accordance with generally accepted auditing standards by an independent auditor, who is a certified public accountant and who is in good standing under the laws of this State or a certified accounting firm, according to the American Institute of Certified Public Accountants (AICPA) guidelines. Any person or firm who is currently suspended from practice before the Securities and Exchange Commission or other governmental agency is not qualified for purposes of this Subsection.

This Subtitle provides a complete, additional, alternative method for the doing of the things authorized and shall be regarded as supplemental and additional to, and the limitations imposed by this Subtitle do not affect powers or rights conferred by other laws, and the issuance of bonds and refunding bonds under this Subtitle need not comply, but may not conflict, with the requirements of any other law applicable to the issuance of bonds. Notwithstanding any other provision of law or Charter, lending institutions may borrow money from the Authority, make education loans and take all other actions and do all those things necessary or convenient to consummate the transactions contemplated under this Subtitle. The Authority may establish, charge, contract for, and collect any amount or rate of interest or compensation with respect to Authority loans and lending institutions or the Authority may contract for, charge and collect any amount or rate of interest or compensation with respect to education loans. Neither the Authority nor any lending institution or any participating institution in a loan program under this Subtitle shall be subject to the licensing provisions of Title 11 of the Financial Institutions Article of the Annotated Code of Maryland and the credit regulations of Title 12 of the Commercial Law Article of the Annotated Code of Maryland.

The Authority may not be required to pay any taxes or assessments of any kind whatsoever and its bonds, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind and nature of taxation by the State of Maryland or by any of its political subdivisions, municipal corporations, or public agencies of any kind.

The Authority in its corporate existence shall continue until terminated by law but no law terminating its existence shall take effect as long as any bonds of the Authority are outstanding and unpaid without adequate provision for payment having been made. Upon termination of its existence, all rights, privileges, and property of the Authority shall pass to and be vested in Prince George's County, Maryland.

The provisions of this Subtitle are severable, and it is the intention to confer the whole or any part of the powers herein provided for, and if any of the provisions of this Subtitle shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions of this Subtitle. It is hereby declared to be the legislative intent that this Subtitle would have been adopted had such unconstitutional provisions not been included herein.

There is hereby created, pursuant to Sections 31-101 through 31-119, inclusive, of this Subtitle, a body corporate and politic known as the Prince George's County Supplemental Higher Educational Loan Authority. Approval is hereby irrevocably granted to the Authority to exercise all the powers and functions granted to it by State law as set forth in this Subtitle or elsewhere. It may do any other and all corporate acts for the purpose of carrying out its powers and functions.

In appointing the members of the Authority, the County Executive shall make appointments that fairly reflect the minority and female composition of the County. Confirmation of the members of the Authority by the County Council shall conclusively evidence compliance with the preceding sentence.

In the exercise of its powers, functions and duties, including the making of loans and the employment of personnel, the Authority shall not discriminate on the basis of race, color, religion, creed, sex, or national origin, and shall recognize the affirmative action policies of the County.