12D.6 - REPAYMENT AND OWNERSHIP OF PAYMENTS AND INVESTMENT INCOME -- TRANSFER OF OWNERSHIP RIGHTS.
12D.6 REPAYMENT AND OWNERSHIP OF PAYMENTS AND
INVESTMENT INCOME -- TRANSFER OF OWNERSHIP RIGHTS.
1. a. A participant retains ownership of all payments made
under a participation agreement up to the date of utilization for
payment of higher education costs for the beneficiary.
b. All income derived from the investment of the payments
made by the participant shall be considered to be held in trust for
the benefit of the beneficiary.
2. In the event the program is terminated prior to payment of
higher education costs for the beneficiary, the participant is
entitled to a refund of the participant's account balance.
3. The institution of higher education shall obtain ownership of
the payments made for the higher education costs paid to the
institution at the time each payment is made to the institution.
4. Any amounts which may be paid to any person or persons
pursuant to the Iowa educational savings plan trust but which are not
listed in this section are owned by the trust.
5. A participant may transfer ownership rights to another
eligible individual, including a gift of the ownership rights to a
minor beneficiary. The transfer shall be made and the property
distributed in accordance with rules adopted by the treasurer of
state or with the terms of the participation agreement.
6. A participant shall not be entitled to utilize any interest in
the trust as security for a loan. Section History: Recent Form
98 Acts, ch 1172, §6; 99 Acts, ch 96, §2; 99 Acts, ch 114, §2; 99
Acts, ch 122, §8, 10; 2004 Acts, ch 1079, §11, 12, 17
Referred to in §12D.9