13B.02.06.10

.10 Administration of the Fund.

A. The Secretary shall administer the Fund as follows:

(1) Monetary payments into the Fund shall be made in the form of a check made payable to the Maryland Guaranty Student Tuition Fund for For-profit Institutions of Higher Education;

(2) Monetary payments into the Fund shall be maintained by the State Comptroller, who shall deposit and invest the assets of the Fund. All interest or other return on the Fund shall be credited to the Fund;

(3) A penalty assessed against a school shall be deposited into the Fund;

(4) The assets of the Fund may not be expended for any purpose other than those specified under Regulation .04A of this chapter; and

(5) The Fund shall be a continuing, nonlapsing fund. Any unspent portion of the Fund may not be transferred or revert to the General Fund of the State, but shall remain in the Fund to be used for the purposes specified in Regulation .04A of this chapter.

B. The Commission is subrogated to and may enforce the claim of any student to the extent of any actual or authorized reimbursement from the Fund.

C. When a claim is approved, the Secretary, as agent for the Fund, shall be subrogated in writing to the amount of the claim. The Secretary is authorized to take all steps necessary to perfect the subrogation rights before the claim is paid. If payment of a school’s obligation is made from the Fund, the Secretary may seek repayment of the sums from the school or another responsible person or entity. This provision is enforced through the Office of the Attorney General.

D. The Secretary may appoint an advisory council to whom the Secretary may refer matters pertaining to the Fund.