Michigan Laws 390.1429 – Advance tuition payment fund; creation; placement of payments in fund; division of fund into separate accounts; assets of trust; priority of expenditures; investments; compliance with divestment from
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Terms Used In Michigan Laws 390.1429
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: means the board of directors of the Michigan education trust described in section 10. See Michigan Laws 390.1424
- Contract: A legal written agreement that becomes binding when signed.
- Fund: means the advance tuition payment fund created in section 9. See Michigan Laws 390.1424
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- 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.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Trust: means the Michigan education trust created in section 5. See Michigan Laws 390.1424
- Tuition: means the quarter or semester charges imposed to attend a state institution of higher education and all mandatory fees required as a condition of enrollment as determined by the board. See Michigan Laws 390.1424
(1) There is created under the jurisdiction and control of the board an advance tuition payment fund. Payments received by the trust from purchasers on behalf of qualified beneficiaries or from any other source, public or private, shall be placed in the fund. The fund may be divided into separate accounts.
(2) Assets of the trust are not considered state money, common cash of the state, revenue for the purposes of section 26 to 34 of article IX of the state constitution of 1963, or state money for the purposes of 1982 PA 259, MCL 12.61 to 12.64.
(3) Unless otherwise provided by resolution of the board, assets of the trust shall be expended in the following order of priority:
(a) To make payments to state institutions of higher education on behalf of qualified beneficiaries.
(b) To make refunds upon termination of an advance tuition payment contract.
(c) To pay the costs of administration and organization of the trust and the fund.
(4) Except as provided in subsection (5), the board may invest assets of the trust in any instrument, obligation, security, or property considered appropriate by the board and may be pooled for investment purposes with investments of the state, including, but not limited to, state pension funds, on such terms and conditions as are agreeable to the board.
(5) The board shall comply with the divestment from terror act in making investments under this act.