§ 653. Powers and duties of the board. In furtherance of the purposes
set forth in this article, the board of trustees shall have the
following powers and duties:

1. To take, hold and preserve, on behalf of the corporation all moneys
appropriated to the corporation or otherwise available to it.

2. a. To submit to the governor, the temporary president of the
senate, the speaker of the assembly, the senate finance committee, the
assembly ways and means committee and the standing committees of the
legislature having jurisdiction of higher education, at such times as
the director of the budget may prescribe a student aid and loan budget
request for the following state fiscal year. The budget request shall
include, but not be limited to estimates of the number and
characteristics of students eligible for aid and loans, other than
education loans made under the New York higher education loan program
pursuant to part V of this article which budget request shall be
developed by the president after consultation with the board of regents
in order to implement the student financial aid and loan programs, other
than education loans made under the New York higher education loan
program pursuant to part V of this article provided for in this article.
Notwithstanding, the budget request shall also include an estimate of
the amounts needed for state operations within the New York higher
education loan program account for purposes of the New York higher
education loan program established pursuant to part V of this article. A
copy of the budget request shall be transmitted to the commissioner for
his information. The budget request submitted by the board shall be
subject to approval annually as part of the executive budget.

b. At the time and in the format prescribed by the Director of the
Budget, the Board shall submit to the Division of the Budget an
administrative and operating budget request. This budget request shall
be subject to approval annually as part of the executive budget.

c. In order further to assure the payment by the corporation to
lending institutions for defaulted loans, other than education loans
made under the New York higher education loan program pursuant to part V
of this article in the respective amounts as guaranteed by the
corporation pursuant to contract, there shall be annually apportioned
and paid to the corporation such estimated amount, if any, as shall be
certified by the board to the governor and director of the budget as
necessary to provide for the payment of all such defaults for the next
ensuing state fiscal year. The board shall, as part of its annual budget
request, make and deliver to the governor and director of the budget,
its certificate stating the estimated amount, if any, required to pay
such defaults for the ensuing state fiscal year, if any, and said sums
shall be apportioned and paid to the corporation during such fiscal
year.

3. To submit on or before November first of each calendar year an
annual report to the board of regents, the governor, the temporary
president of the senate, the speaker of the assembly, the senate finance
committee, the assembly ways and means committee and the standing
committees of the legislature having jurisdiction of higher education.

4. To sue and be sued in the name of the corporation provided,
however, a claim for money damages against the corporation, except where
such claim is based on an alleged guarantee made by the corporation
under the federal guaranteed student loan programs or is for interest or
other subsidies payable by the federal government under such programs,
shall be made solely under and pursuant to the provisions of the court
of claims act including but not limited to service thereunder upon the
attorney general. Except in the case where the provisions of the court
of claims act apply, process in any action or proceeding may be served
upon the secretary of state as agent for the corporation, in the manner
provided by section three hundred six of the business corporation law.
Provided, however, notwithstanding any inconsistent provision of law,
the venue of an action brought by or on behalf of the corporation on any
loan made or guaranteed by it which is in default, may be laid in Albany
county or any other county otherwise permitted by law and in any action
brought against the corporation the venue shall be laid in the county of
Albany. Provided further however, that in an action brought by or on
behalf of the corporation on any loan made or guaranteed by it which is
in default, a defendant shall be entitled, upon motion made in the
county in which venue has been laid and upon a showing of facts
sufficient to require a trial of any issue of fact, to a change of venue
to any other county permitted by law.

5. To procure a policy or policies of group life insurance to insure
the repayment of loans made or guaranteed by the corporation in the
event of the death of an individual to whom a loan is made or guaranteed
hereunder.

6. To appoint an advisory council to consist of three student
financial aid officers from public institutions of higher education,
three student financial aid officers from private institutions of higher
education, three representatives of banking institutions within the
state, and four students, one of whom shall be a student registered in a
full time course of study at an institution of the state university, one
of whom shall be a student registered in a full time course of study at
an institution of the city university of the city of New York, one of
whom shall be a student registered in a full time course of study at an
independent institution of higher education within the state, and one of
whom shall be a student registered in a full time course of study at a
community college located outside of the city of New York, to assist the
corporation on a regular basis in carrying out its purposes. The four
student members shall be appointed after consultation with and
recommendations from appropriate student organizations. Appointments
shall be for a period of three years, except that of the student members
which shall be for one year, and except that of the members first
appointed from public institutions of higher education and of the
members first appointed from private institutions of higher learning and
of the members first appointed from banking institutions, respectively,
one shall be appointed for a term of one year beginning July first,
nineteen hundred seventy-five and ending June thirtieth, nineteen
hundred seventy-six, one shall be appointed for a term of two years
beginning July first, nineteen hundred seventy-five and ending June
thirtieth, nineteen hundred seventy-seven and one shall be appointed for
a term of three years beginning July first, nineteen hundred
seventy-five and ending June thirtieth, nineteen hundred seventy-eight.
Any members whose employment or student status ceases to conform to the
above requirements shall be required to resign. Vacancies shall be
filled for the unexpired term in the same manner as original
appointments.

7. To prescribe, with the approval of the comptroller, a system of
accounts.

8. To take, hold and administer, on behalf of the corporation and for
any of its purposes, real property, personal property and moneys, or any
interest therein, and the income therefrom, either absolutely or in
trust, for any purpose of the corporation. The board may acquire
property or moneys for such purpose by purchase or lease in accordance
with the requirements of article eleven of the state finance law and by
the acceptance of gifts, grants, bequests, devises or loans; provided,
however, that no obligation of the corporation shall be a debt of the
state.

9. To perform such other acts as may be necessary or appropriate to
carry out the objects and purposes of the corporation as specified in
this article including promulgation of rules and regulations, which
shall be filed in accordance with section one hundred one-a of the
executive law.