(a) Any trust for higher education created to be administered by a trust corporation formed under this part shall be a charitable trust for the general welfare of the citizens of this state. No funds shall be available for distribution from the trust until two hundred (200) years from the date the trust is created. All contributions to the trust shall be considered as principal and until the two hundredth year from the formation of the trust, all interest accruing on the principal amount shall be added to the trust funds and be considered as principal. After the two hundredth year from the formation of the trust, interest income from the trust fund will be available for disbursement for higher education pursuant to the plan required by the trust document creating the trust. The board of directors of the trust corporation shall establish guidelines for disbursement that are not inconsistent with this part or the trust document under which it operates as trustee for the trust.
Terms Used In Tennessee Code 49-7-605
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
Trustee: A person or institution holding and administering property in trust.
(b) Income from the investment of the trust for higher education shall be expended solely in accordance with this part and the respective trust agreement, except that reasonable expenses for administration of the trust may be deducted from the income.
