(a) A tuition contract terminates when the plan is terminated if the contract does not remain in effect under subsection (b). In that event, the purchaser must make a written request to the board to roll the tuition account over to another qualified tuition program established under § 529 of the Internal Revenue Code (26 U.S.C. § 529). If the purchaser does not make the request by the final plan termination date, a refund shall be made to the person designated in the contract to receive the refund. The board shall determine the amount payable pursuant to a rollover request and the amount of any refund upon termination of the plan. Any rollover under this section shall be administered in accordance with the applicable rollover provisions of the Internal Revenue Code.

Terms Used In Tennessee Code 49-7-824

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • 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 investment plan: means a plan that permits an account owner to establish an educational investment trust account and one (1) or more contributors to make contributions to an educational investment trust account that is intended to be applied to an account beneficiary's qualified higher education expenses. See Tennessee Code 49-7-802
  • 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
  • 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
  • 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
  • Trust fund: means the educational investment trust fund or the educational services trust fund established 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
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) Unless otherwise provided by the board, an educational services plan tuition contract remains in effect after the plan is terminated if, when the plan is terminated, the beneficiary:

(1) Has been accepted by or is enrolled in an institution of higher education; or
(2) Is projected to graduate from high school no later than the third anniversary of the date the plan is terminated.
(c) After all obligations of this section and the costs of administering the plan are satisfied, the state treasurer may transfer all or a portion of any assets to the board of trustees for the college savings trust fund program to be used for the administration and marketing of the educational investment plan. Any assets remaining after the transfer must be transferred to the general fund.
(d) Notwithstanding any law to the contrary, an educational services plan tuition contract shall not remain or otherwise be in effect after December 31, 2021, regardless of whether the requirements of subsection (b) are met with respect to any particular contract. The state shall provide educational services plan purchasers and beneficiaries with at least sixty (60) days written notice of the termination of the educational services plan prior to November 1, 2021. Notice must be provided using the contact information on file with the plan and indicate that the purchaser may request use of any or all tuition units associated with the purchaser’s educational plan tuition contract, request a refund, or request a rollover on or before November 1, 2021. Any rollover requested pursuant to this subsection (d) must be administered in accordance with applicable federal and state laws, rules, and regulations. If the purchaser does not request use of all of the tuition units associated with the purchaser’s educational services plan tuition contract, request a refund, or request a rollover on or before November 1, 2021, then a refund must be made to the person designated in the contract to receive the refund in accordance with applicable federal and state laws, rules, and regulations; provided, however, that the amount of the refund must be calculated in accordance with the board’s rules for refunds following the death or permanent disability of a beneficiary. The educational services plan shall not reimburse tuition units after December 31, 2021.
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