(a) The commissioner is authorized to regulate the operation and administration of any plan or plans, as provided in this section, and to adopt and promulgate reasonable regulations as necessary to the exercise of the powers vested in the commissioner. In the adoption of regulations, the commissioner shall give paramount consideration to the safeguarding of funds and the protection of scholarship recipients.
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.
Corporation: means a corporation or association not for profit authorized to administer a plan in the state. See Tennessee Code 49-4-101
Plan: means any educational cooperative plan or scholarship plan subject to this part. See Tennessee Code 49-4-101
Scholarship: means educational benefits payable pursuant to a plan which shall not be deemed to be distribution of income to a member of a corporation. See Tennessee Code 49-4-101
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
(b) No plan shall be approved by the commissioner that does not comply with regulations relating to the following:
(1) Rights to withdrawal of principal investment;(2) Enrollment fees and dues in an amount reasonably necessary to administer the plan as determined by the commissioner and pursuant to recommendation of the board of directors of the nonprofit corporation;(3) Incorporation and qualification with the secretary of state by a corporation;(4) Security of funds for scholarships;(5) Qualifications of institutions in which scholarships may be granted;(6) Maximum duration of scholarship;(7) Scholastic achievement as qualification for commencement or continuation of scholarship not exceeding average passing grade in institution;(8) Amount of contributions and duration necessary to participation in benefits of plan;(9) Good moral character of management personnel; and(10) Voting rights of members or trustees of members.
