CHAPTER 7. INDIANA FAMILY COLLEGE SAVINGS PROGRAMS
IC 21-9-7
Chapter 7. Indiana Family College Savings Programs
IC 21-9-7-1
Powers of board
Sec. 1. In addition to any other powers granted by this article, the
board has all powers necessary or convenient to carry out and
effectuate the purposes and objectives of this chapter and IC 21-9-8,
the purposes and objectives of an education savings program that
may be established under this article, and the powers delegated by
other laws or executive orders, including the following:
(1) To establish policies and procedures to govern distributions
from accounts that are not:
(A) made on account of the death or disability of an account
beneficiary;
(B) made on account of the receipt of a scholarship (or
allowance or payment described in Section 135(d)(1)(B) or
(C) of the Internal Revenue Code) by the account beneficiary
to the extent the amount of the distribution does not exceed
the amount of the scholarship, allowance, or payment; or
(C) rollovers.
(2) To establish penalties for withdrawals of money from
accounts that are not used exclusively for the qualified higher
education expenses of an account beneficiary unless a
circumstance described in subdivision (1) applies.
(3) To establish policies and procedures regarding the transfer
of individual accounts and the designation of substitute account
beneficiaries.
(4) To establish policies and procedures for withdrawal of
money from accounts for, or in reimbursement of, qualified
higher education expenses.
(5) To enter into agreements with account owners, account
beneficiaries, and contributors, with the agreements naming:
(A) the account owner; and
(B) the account beneficiary.
(6) To establish accounts for account beneficiaries. However:
(A) the authority shall establish a separate account for each
account beneficiary; and
(B) an individual may be the beneficiary of more than one
(1) account.
(7) To enter into agreements with financial institutions relating
to accounts as well as deposits, withdrawals, penalties,
allocation of benefits or incentives, and transfers of accounts,
account owners, and account beneficiaries.
(8) To conform the education savings program to federal tax
advantages or incentives, as the advantages or incentives may
exist periodically, to the extent consistent with the purposes and
objectives of this article.
(9) To interpret, in rules, policies, guidelines, and procedures,
the provisions of this article broadly considering the purposes
and objectives of this article.
As added by P.L.165-1996, SEC.1. Amended by P.L.25-1999, SEC.9;
P.L.135-2002, SEC.21.
IC 21-9-7-2
Consideration of money in accounts by state student assistance
commission
Sec. 2. The amount of money available in an account and the
proposed use of money in an account on behalf of an account
beneficiary may not be considered by the state student assistance
commission under IC 21-12-3, IC 21-12-4, IC 21-12-5, or IC 21-13-2
when determining award amounts under a program administered by
the state student assistance commission.
As added by P.L.165-1996, SEC.1. Amended by P.L.135-2002,
SEC.22; P.L.2-2007, SEC.250.
IC 21-9-7-3
Account not an asset
Sec. 3. An account is not an asset for the purposes of IC 6-4.1-2.
As added by P.L.165-1996, SEC.1. Amended by P.L.135-2002,
SEC.23.
IC 21-9-7-4
Property of account owner
Sec. 4. Money deposited in an account by the account owner or a
contributor and investment returns on an account are the property of
the account owner.
As added by P.L.165-1996, SEC.1.
IC 21-9-7-5
Repealed
(Repealed by P.L.135-2002, SEC.30.)
IC 21-9-7-6
Repealed
(Repealed by P.L.135-2002, SEC.30.)
IC 21-9-7-7
Use of funds as loan security prohibited
Sec. 7. Funds held in an account of an education savings program
that may be established under this article may not be used by an
account owner or account beneficiary as security for a loan.
As added by P.L.25-1999, SEC.12. Amended by P.L.135-2002,
SEC.24.
IC 21-9-7-8
Maximum account balance
Sec. 8. (a) Contributions to an account may not exceed the amount
necessary to provide for the qualified higher education expenses of
the account beneficiary.
(b) The authority shall adopt rules or emergency rules under
IC 4-22-2 to determine the maximum account balance applicable to
all accounts of account beneficiaries with the same expected year of
enrollment.
As added by P.L.25-1999, SEC.13. Amended by P.L.135-2002,
SEC.25.
IC 21-9-7-9
Authorization to adopt rules to establish a penalty
Sec. 9. The authority may adopt rules or emergency rules under
IC 4-22-2 to establish a penalty for a distribution that is not used
exclusively for the qualified higher education expenses of an account
beneficiary. However, the authority may not establish a penalty for
distributions described in IC 21-9-7-1(1).
As added by P.L.25-1999, SEC.14. Amended by P.L.135-2002,
SEC.26.