Sec. 1. 10 MRSA §969-A, sub-§14-C is enacted to read:

14-C.__Student loan secondary market.__Take all actions necessary to implement and administer a student loan secondary market;

Sec. 2. 20-A MRSA c. 417-F is enacted to read:

CHAPTER 417-F

HIGHER EDUCATION LOAN PURCHASE PROGRAM

§11491.__Purpose; program established

The Legislature finds and declares that the provision of higher education for all residents of this State and for nonresidents attending institutions of higher education within this State who desire higher education and are properly qualified is important to the welfare and security of this State and consequently is an important public purpose.__Many qualified students are deterred by financial considerations from completing their education, with a consequent irreparable loss to the State of talents vital to the welfare of the State and its citizens.__ Accordingly, there is established the Higher Education Loan Purchase Program to provide greater access to federal loan program loans at a lower cost enabling students in this State to attend the institutions of higher education of their choice.

§11492.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Authority. "Authority" means the Finance Authority of Maine established in Title 10, section 961 and its successors or assigns.

2.__Bonds. "Bonds" includes bonds, notes, commercial paper, pass-through instruments or any other evidences of indebtedness the authority issues under this chapter.

3.__Borrower. "Borrower" means a person who is obligated as a borrower to make payment of an eligible loan.

4.__Eligible lender. "Eligible lender" means the authority and the Federal Government and any financial institution or institution of higher education that is an eligible lender under the federal Higher Education Act of 1965, Public Law 89-329, 79