An Act To Further Facilitate the Provision of Educational Loans for Maine Students and Families

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  there has been unprecedented turbulence in the capital markets that has made it necessary to replace existing auction rate bond financing for federally guaranteed student loans with financing supported by a capital reserve fund; and

Whereas,  if financing supported by a capital reserve fund cannot be made available, the availability, rates and terms of federally guaranteed student loans to Maine borrowers may be adversely affected, resulting in increased costs to students and families or even unavailability of federally guaranteed student loans; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. 20-A MRSA §11496-A, sub-§1,  as enacted by PL 2007, c. 665, §1, is amended to read:

Sec. 2. 20-A MRSA §11496-A, sub-§3, ¶A,  as enacted by PL 2007, c. 665, §1, is amended to read:

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill extends the date after which the Finance Authority of Maine may not create or establish any capital reserve fund for the provision of educational loans for Maine students and families from June 30, 2009 to June 30, 2010.