Maine Revised Statutes Title 20-A Sec. 11477 – Early termination or overfunding of participation agreement
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1. Cancellation. The authority may by rule establish fees and penalties applicable to early termination, overfunding of accounts or failure to use the program fund for an eligible purpose.
[PL 1997, c. 732, §4 (NEW).]
Terms Used In Maine Revised Statutes Title 20-A Sec. 11477
- Authority: means the Finance Authority of Maine, which serves as administrator of the Maine Education Savings Program. See Maine Revised Statutes Title 20-A Sec. 11471
- 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
- Beneficiary: means any person designated by a participation agreement to benefit from payments for higher education expenses. See Maine Revised Statutes Title 20-A Sec. 11471
- Higher education expenses: means the certified expenses for attendance at an institution of higher education as those expenses are defined by rule of the authority consistent with applicable provisions of the federal Internal Revenue Code of 1986 and its regulations addressing qualified tuition programs. See Maine Revised Statutes Title 20-A Sec. 11471
- Institution of higher education: means an institution of higher education that meets the requirements established by rule of the authority consistent with applicable provisions of the federal Internal Revenue Code of 1986 and its regulations addressing qualified tuition programs. See Maine Revised Statutes Title 20-A Sec. 11471
- Participant: means any person who has entered into a participation agreement pursuant to this chapter. See Maine Revised Statutes Title 20-A Sec. 11471
- Participation agreement: means an agreement between a participant and the authority providing for the establishment by the participant of one or more accounts within the program fund and for the administration of those accounts for the benefit of the participant and of one or more beneficiaries. See Maine Revised Statutes Title 20-A Sec. 11471
2. Death or disability. The authority may not levy or assess an administration refund fee or penalty upon a participant‘s termination of a participation agreement under the following circumstances:
A. Death of the beneficiary; [PL 1997, c. 732, §4 (NEW).]
B. Permanent disability or mental incapacity of the beneficiary; or [PL 1997, c. 732, §4 (NEW).]
C. Receipt by the beneficiary of a scholarship or educational funding, identified by rule of the authority, resulting in an excess of funds in the account not needed to pay higher education expenses at an institution of higher education. [PL 2017, c. 474, Pt. F, §5 (AMD).]
[PL 2017, c. 474, Pt. F, §5 (AMD).]
SECTION HISTORY
PL 1997, c. 732, §4 (NEW). PL 2017, c. 474, Pt. F, §5 (AMD).