164A.700 Definitions for KRS 164A.700 to 164A.709.
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<![CDATA[164A.700 Definitions for KRS 164A.700 to 164A.709. As used in KRS 164A.700 to 164A.709, unless the context requires otherwise: <br>(1) "Academic year" means the time period specified by each eligible educational institution; (2) "Board" means the board of directors of the Kentucky Higher Education Assistance Authority acting in the capacity of the board of directors of the Commonwealth <br>postsecondary education prepaid tuition trust fund; (3) "Eligible educational institution" means an institution defined in the Internal Revenue Code of 1986, as amended, 26 U.S.C. sec. 529(e)(5); (4) "Fund" means the prepaid tuition payment fund created in KRS 164A.701 and known as the "Commonwealth Postsecondary Education Prepaid Tuition Trust <br>Fund" or "Kentucky's Affordable Prepaid Tuition" (KAPT); (5) "Prepaid tuition" means the amount of tuition estimated by the board for the tuition plan under the prepaid tuition contract; (6) "Prepaid tuition academic year conversion" means the difference between the amount of prepaid tuition required in the original prepaid tuition contract and the <br>amount of prepaid tuition required in an amended prepaid tuition contract as the <br>result of the change in the academic year; (7) "Prepaid tuition academic year conversion shortfall" means the amount by which the prepaid tuition required in an amended prepaid tuition contract as the result of <br>the change in the academic year exceeds the amount of prepaid tuition required in <br>the original prepaid tuition contract; (8) "Prepaid tuition account" means the account for a qualified beneficiary as specified in the prepaid tuition contract; (9) "Prepaid tuition contract" means the contract entered into by the board and the purchaser for the purchase of prepaid tuition for a qualified beneficiary to attend any <br>eligible educational institution as provided in KRS 164A.700 to 164A.709; (10) "Prepaid tuition conversion" means the difference between the value of a prepaid tuition account and the tuition at an eligible educational institution; (11) "Prepaid tuition conversion shortfall" means the amount by which the actual tuition cost at an eligible educational institution exceeds the amount of the value of a <br>prepaid tuition account; (12) "Purchaser" means a person, corporation, association, partnership, or other legal entity who enters into a prepaid tuition contract; (13) "Qualified beneficiary" means a designated beneficiary, as defined in 26 U.S.C. sec. 529(e)(1), who is: <br>(a) A Kentucky resident designated as beneficiary at the time a purchaser enters into a prepaid tuition contract; or (b) A nonresident designated at the time a purchaser enters into a prepaid tuition contract who intends to attend an eligible institution in Kentucky; or (c) A new beneficiary, in the case of a change of beneficiaries under provisions of KRS 164A.707; or (d) An individual receiving a scholarship in the case of a prepaid tuition contract purchased by a state or local government or agency or instrumentality thereof <br>or an organization described in 26 U.S.C. sec. 501(c)(3), and exempt from <br>federal income taxation pursuant to 26 U.S.C. sec. 501(a) as part of a <br>scholarship program offered by the government entity or the organization; (14) "Qualified postsecondary education expenses" means qualified higher education expenses as defined in 26 U.S.C. sec. 529(e)(3); (15) "Tuition" means the prevailing tuition and all mandatory fees charged as a condition of full-time enrollment in an undergraduate program for an academic year for a <br>qualified beneficiary to attend an eligible educational institution; (16) "Tuition Account Program Office" or "office" means the office in the Kentucky Higher Education Assistance Authority that is responsible for administering the <br>prepaid tuition program and its accounts; (17) "Tuition plan" means a tuition plan approved by the board and provided under a prepaid tuition contract; and (18) "Value of a prepaid tuition account" means the amount which the fund is obligated to pay for tuition for an academic period based on full payment of the purchaser's <br>tuition plan; except, under a tuition plan for private colleges and universities, tuition <br>shall be calculated based on the same percentage that University of Kentucky tuition <br>is increased from the year the prepaid tuition contract is purchased to the year of <br>payment. Effective: April 25, 2006 <br>History: Amended 2006 Ky. Acts ch. 252, Pt. XXXI, sec. 1, effective April 25, 2006. -- Amended 2005 Ky. Acts ch. 162, sec. 3, effective July 1, 2005. -- Amended 2002 <br>Ky. Acts ch. 25, sec. 1, effective July 15, 2002. -- Created 2000 Ky. Acts ch. 163, <br>sec. 1, effective July 14, 2000. ]]>