§ 16-57-6.2 - Ownership of assets – Transfer of ownership rights.
SECTION 16-57-6.2
§ 16-57-6.2 Ownership of assets –Transfer of ownership rights. – (a) The participant retains ownership of all assets properly allocated to anaccount maintained for the participant in the tuition savings program up to thedate of withdrawal or distribution of these from the program.
(b) All assets of the tuition savings program shall beconsidered to be held in trust. As required by the Internal Revenue Code, nointerest in the tuition savings program or any portion of these may be used assecurity for a loan.
(c) Any amounts paid to the administrative fund of thetuition savings program are owned by the authority. These amounts may include,but are not limited to, appropriated state funds.
(d) A participant may transfer ownership rights in thetuition savings program to another participant or designate a new beneficiaryinsofar as permitted by § 529 of the Internal Revenue Code [26 U.S.C.§ 529] under such conditions as the authority deems appropriate.