R 390.1467 Guaranty reserve fund.

Rule 67. (1) The authority shall hold moneys from all of the following to pay defaulted loans and administrative expenses: (a) Private contributions. (b) Deposits by participating schools. (c) Appropriations from the state of Michigan. (d) Reinsurance. (e) Administrative cost allowance. (f) Insurance premiums. (g) Investment earnings. (h) Advances from the federal government. (2) The guaranty agency shall maintain the guaranty reserve fund as a capital reserve consisting of cash, direct obligations of the United States or the state of Michigan, certificates of deposit, or other investment instruments as permitted by the act and the secretary in the provisions of 34 C.F.R. S682.410. These provisions are adopted by reference in R 390.1491. The fund shall have a market value equal at all times to not less than 2% of the aggregate unpaid principal amount of all loans guaranteed by the authority.