§ 695-f. Program limitations; family tuition account. 1. Nothing in this article shall be construed to:

Terms Used In N.Y. Education Law 695-F

  • Account owner: shall mean a person who enters into a tuition savings agreement pursuant to the provisions of this article, including a person who enters into such an agreement as a fiduciary or agent on behalf of a trust, estate, partnership, association, company or corporation. See N.Y. Education Law 695-B
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Comptroller: shall mean the comptroller of the state of New York. See N.Y. Education Law 695-B
  • Contract: A legal written agreement that becomes binding when signed.
  • Designated beneficiary: shall mean , with respect to an account or accounts, the individual designated as the individual whose higher education expenses are expected to be paid from the account or accounts. See N.Y. Education Law 695-B
  • Eligible educational institution: shall mean (a) any institution of higher education defined as an eligible educational institution in section 529(e)(5) of the Internal Revenue Code of 1986, as amended, or (b) any apprenticeship program described in section 529(c)(8) of the Internal Revenue Code of 1986, as amended. See N.Y. Education Law 695-B
  • family tuition account: shall mean an individual savings account established in accordance with the provisions of this article. See N.Y. Education Law 695-B
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Program: shall mean the New York state college choice tuition savings program established pursuant to this article. See N.Y. Education Law 695-B
  • Qualified higher education expenses: shall mean any qualified higher education expense included in section 529 of the Internal Revenue Code of 1986, as amended. See N.Y. Education Law 695-B

a. give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner;

b. guarantee that a designated beneficiary will be admitted to an eligible educational institution;

c. create state residency for an individual merely because the individual is a designated beneficiary; or

d. guarantee that amounts saved pursuant to the program will be sufficient to cover the qualified higher education expenses of a designated beneficiary.

2. a. Nothing in this article shall create or be construed to create any obligation of the comptroller, the state, or any agency or instrumentality of the state to guarantee for the benefit of any account owner or designated beneficiary with respect to:

(i) the rate of interest or other return on any account; and

(ii) the payment of interest or other return on any account.

b. The comptroller and the corporation by rule or regulation shall provide that every contract, application, deposit slip, or other similar document that may be used in connection with a contribution to an account clearly indicate that the account is not insured by the state and neither the principal deposited nor the investment return is guaranteed by the state.

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