(a) The following information shall be disclosed in writing to each purchaser of a tuition contract:

Terms Used In Tennessee Code 49-7-809

  • 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 an individual designated under a tuition contract as the individual entitled to apply tuition units purchased under the contract to the payment of that individual's undergraduate, graduate and professional tuition, and other educational costs. See Tennessee Code 49-7-802
  • Board: means the board of trustees of the college savings trust fund program described in this part. See Tennessee Code 49-7-802
  • Code: means §. See Tennessee Code 49-7-802
  • Contract: A legal written agreement that becomes binding when signed.
  • Educational services plan: means a plan that permits individuals, associations, corporations, trusts or other organized entities to purchase a tuition unit or units under a tuition contract entered into between a purchaser and the board on behalf of a designated beneficiary that entitles the beneficiary to apply such units to the payment of that beneficiary's undergraduate, graduate and professional tuition, and other educational costs. See Tennessee Code 49-7-802
  • 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, firm, company or association. See Tennessee Code 1-3-105
  • Program: means the college savings trust fund program created in this part. See Tennessee Code 49-7-802
  • Purchaser: means an individual, association, corporation, trust, charitable organization or other such entity that enters into a tuition contract under this part for the purchase of a tuition unit or units on behalf of a beneficiary relative to the educational services plan. See Tennessee Code 49-7-802
  • Redemption value: means the cash value of the educational investment trust account attributable to the sum of the principal invested, the interest earned or losses incurred in the principal, less any fees imposed by rule of the board. See Tennessee Code 49-7-802
  • Refund recipient: means the person designated in a tuition contract by the purchaser as the person entitled to terminate the tuition contract and to receive refunds arising out of the contract pursuant to §. See Tennessee Code 49-7-802
  • Tuition: means the charges imposed to attend an institution of higher education as an undergraduate, graduate or professional student and all fees required as a condition of enrollment as determined by the board. See Tennessee Code 49-7-802
  • Tuition contract: means a contract entered into under this part by the board and a purchaser to provide for the payment of tuition and other educational costs, through either the educational savings plan or the educational services plan. See Tennessee Code 49-7-802
(1) The terms and conditions for purchasing tuition units if the contract involves the educational services plan, or the terms and conditions for the making of contributions if the contract involves the educational savings plan;
(2) The name and date of birth of the beneficiary of the contract, and the terms and conditions under which another person may be substituted as the beneficiary;
(3) The name of the refund recipient;
(4) The terms and conditions under which the contract may be terminated by the refund recipient and the amount of the refund, if any, to which the refund recipient is entitled upon termination;
(5) The method by which tuition benefits under the program shall be applied toward payment of tuition and other educational costs;
(6) The period of time during which the beneficiary must claim benefits through the program;
(7) If the contract involves the educational services plan, the obligation of the board to make payments on behalf of a beneficiary under § 49-7-807(a) based upon the number of tuition units purchased on behalf of the beneficiary, or if the contract involves the educational savings plan, the obligation of the board to make payments on behalf of a beneficiary under § 49-7-808(a) based upon the redemption value accrued on behalf of the beneficiary;
(8) The terms and conditions under which money may be wholly or partially withdrawn from the program, including, but not limited to, any reasonable charges and fees that may be imposed for withdrawal;
(9) The obligation of the board to pay directly to the institution of higher education in which the beneficiary is enrolled the tuition benefits being used that term for tuition and other educational costs; and
(10) Other terms, conditions and provisions the board considers, in its sole discretion, to be necessary or appropriate.
(b) Notwithstanding any other law to the contrary, the board may provide in a tuition contract that the tuition benefits being used for the payment of tuition and other educational costs be paid directly to the beneficiary or to the entity to whom the charges are owed; provided, that the direct payments are authorized under the sections of the Internal Revenue Code that are applicable to the program.
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