§ 1679-a. Health education assistance loan financing program. 1. The\npurpose of the health education assistance loan financing program,\nhereafter referred to as the HEAL loan financing program, is to make\navailable to students attending public and independent institutions for\nhigher education financial assistance beyond the grants and loans\navailable from state, federal and private sources, other than\nsupplemental higher education loans pursuant to section sixteen hundred\nseventy-nine of this chapter, where such students demonstrate remaining\nfinancial need. Such program is created to encourage the participation\nof HEAL eligible institutions in conjunction with, but not in\nsubstitution for, the participation of financial or credit institutions\nin increasing the availability of HEAL loans to all eligible students.\nThe authority and institutions for higher education participating in\nsuch program shall to the extent practicable ensure that borrowers of\nsuch loans include individuals who are underrepresented or unrepresented\nin the health professions.\n 2. In furtherance of its powers under this title with respect to the\nHEAL loan financing program, the authority is authorized:\n (a) to receive and accept from any source loans, contributions or\ngrants for or in aid of the HEAL loan financing program or any portion\nthereof and, when desirable, to use such funds, property or labor only\nfor the purposes for which it was loaned, contributed or granted;\n (b) to make HEAL direct loans to students attending, and HEAL\neducation loans to participating independent institutions for higher\neducation, and require that the proceeds of HEAL education loans be used\nfor making HEAL student loans, funding reserves, providing for\ncapitalized interest and paying other costs and fees involved in making\nHEAL student loans or issuing bonds; and\n (c) to purchase HEAL student loans solely from participating\nindependent institutions for higher education under terms and conditions\nwhich require that such loans were originated after the effective date\nof this section in contemplation of participation by such institutions\nfor higher education in the HEAL loan financing program of the authority\nauthorized by this section and in anticipation of the purchase of such\nloans by the authority, provided, however, that prior to the sale of\nbonds any portion of the proceeds of which shall be used for the\npurchase, acquisition or taking by assignment or otherwise of HEAL\nstudent loans, the authority shall by resolution adopt specific\nguidelines setting forth the terms and conditions upon which such\npurchases, acquisitions and taking by assignment or otherwise shall be\nmade. No such resolution shall be adopted until at least forty-five days\nafter the delivery of a copy of such proposed guidelines to the\ngovernor, the temporary president of the senate and the speaker of the\nassembly for comment.\n (d) to sell HEAL direct loans, HEAL education loans and HEAL student\nloans purchased, acquired or taken by assignment or otherwise by the\nauthority to the extent necessary to assure the marketability of and\nadequacy of the security for the bonds of the authority.\n 3. The authority shall adopt guidelines, subject to review by the\nadvisory committee, created pursuant to subdivision ten of section\nsixteen hundred seventy-nine of this chapter, and consistent with\nfederal law and regulations to the extent applicable, which shall\ninclude but not be limited to: (a) eligibility criteria for making HEAL\neducation loans and HEAL direct loans; (b) limitations upon the\nprincipal amounts and the terms of HEAL education loans and HEAL direct\nloans; (c) qualifications and characteristics of borrowers; and (d)\nprocedures for allocating HEAL education loans among independent\ninstitutions and for allocating direct loans among students attending\npublic institutions. Such guidelines shall also include such eligibility\nstandards for borro
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