18A:71B-72 - Development of advance payment contract, terms
18A:71B-72 Development of advance payment contract, terms.
9. a. The board shall develop an advance payment contract with the assistance of the Office of the Attorney General. An advance payment contract shall be exempt from the provisions of Subtitle 3 of Title 17 of the Revised Statutes and Subtitle 3 of Title 17B of the New Jersey Statutes. The contents of the contract shall include, but not be limited to, the following:
(1)the amount of the payments and the number of payments required from a purchaser;
(2)the terms and conditions under which purchasers are required to remit payments, including, but not limited to, the date or dates upon which each payment is due;
(3)provisions for late payment charges and for default;
(4)provisions for penalty fees for withdrawals from the fund;
(5)the name and date of birth of the qualified beneficiary on whose behalf the contract is drawn and the terms and conditions under which another person may be substituted as the qualified beneficiary;
(6)the name of any person who may cancel the contract. The terms of the contract shall specify whether the contract may be canceled by the purchaser, the qualified beneficiary, a specific designated person or any combination of these persons;
(7)the terms and conditions under which a contract may be canceled, the name of the person entitled to any refund due as a result of the cancellation of the contract pursuant to those terms and conditions, and the method for determining the amount of refund;
(8)the time limitations, if any, within which the qualified beneficiary is required to claim benefits through the program. If time limitations are included in the contract, the time expended by a qualified beneficiary as an active duty member of any of the armed services of the United States shall be added to the period of time permitted to exercise the benefits;
(9)the terms and conditions, if any, under which a purchaser may designate another individual as a successor owner of the contract; and
(10) other terms and conditions deemed by the board to be necessary or proper.
b.In addition to the provisions of subsection a. of this section an advance payment contract shall include the following:
(1)the number of credit hours contracted by the purchaser;
(2)the plan toward which the credit hours shall be applied;
(3)the assumption of a contractual obligation by the board to the qualified beneficiary to provide for a specified number of credit hours of undergraduate instruction at a public institution of higher education, not to exceed the maximum number of credit hours which may be purchased under the program for the associate degree or the baccalaureate degree, as appropriate .
L.2001,c.262,s.9.