Montana Code 15-62-206. Limitations
15-62-206. Limitations. (1) This chapter may not be construed to:
Terms Used In Montana Code 15-62-206
- Account: means an individual account established under this chapter. See Montana Code 15-62-103
- Account owner: means the person who enters into a participation agreement and establishes an account on behalf of a designated beneficiary. See Montana Code 15-62-103
- 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
- Board: means the board of regents of higher education established by Article X, section 9, subsection (2), of the Montana constitution and 2-15-1505. See Montana Code 15-62-103
- Contract: A legal written agreement that becomes binding when signed.
- Contributor: means a person who makes a contribution to an account for the benefit of a designated beneficiary. See Montana Code 15-62-103
- Designated beneficiary: means , with respect to an account, the person designated at the time that the account is opened as the person whose education expenses are expected to be paid from the account or if this person is replaced in accordance with 15-62-202, the individual replacing the former designated beneficiary. See Montana Code 15-62-103
- Higher education institution: means an eligible educational institution as defined in section 529 of the Internal Revenue Code, 26 U. See Montana Code 15-62-103
- 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.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Program: means the family education savings program established pursuant to 15-62-201. See Montana Code 15-62-103
- Qualified education expenses: means any education expense permitted by section 529 of the Internal Revenue Code, 26 U. See Montana Code 15-62-103
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(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 a higher education institution or an elementary or secondary school or be allowed to continue enrollment at or graduate from a higher education institution or an elementary or secondary school located in this state after admission;
(c)establish state residency for a person merely because the person is a designated beneficiary; or
(d)guarantee that amounts saved pursuant to the program will be sufficient to cover the qualified education expenses of a designated beneficiary.
(2)This chapter does not establish any obligation of this state or any agency or instrumentality of the state to guarantee for the benefit of any account owner, contributor to an account, or designated beneficiary:
(a)the return of any amounts contributed to an account;
(b)the rate of interest or other return on any account; or
(c)the payment of interest or other return on any account.
(3)Under policies adopted by the board, each contract, application, offering or disclosure document, and any other type of document identified by the board that may be used in connection with a contribution to an account must clearly indicate that the account is not insured by the state and that the principal deposited or the investment return is not guaranteed by the state.