49-7-808 - Educational savings plan.
49-7-808. Educational savings plan.
(a) An educational savings plan tuition contract entered into between the board and a purchaser shall allow the purchaser to deposit contributions to a savings account created by the board on behalf of a beneficiary. A savings account created on behalf of a beneficiary under this part shall entitle the beneficiary to an amount equal to the funds on deposit in the account during the academic term in which the funds are needed to cover the beneficiary's tuition and other educational costs at the institution of higher education where the beneficiary is enrolled, not to exceed the redemption value of the account.
(b) Redemption value means the cash value of the educational savings account attributable to the sum of the principal invested, the interest earned or losses incurred on the principal, less any fees imposed by rule of the board.
(c) The board shall develop a plan for offering educational savings accounts. The plan shall include, but shall not be limited to, the vehicles for investing the contributions made to the accounts and the date on which the savings accounts shall be offered. The board may impose and collect administrative fees and charges in connection with the creation and maintenance of the accounts.
[Acts 1999, ch. 233, § 37.]