35A-3-312 - Individual development accounts.
35A-3-312. Individual development accounts.
(1) As used in this section:
(a) "Individual development account" means a trust account funded through periodiccontributions by a client and matched by or through a not-for-profit organization organized underSection 501(c)(3), Internal Revenue Code.
(b) "Qualified acquisition costs" means the costs of acquiring, constructing, orreconstructing a residence, including settlement and closing costs.
(c) "Qualified businesses capitalization expenses" means expenditures for capital, plant,equipment, working capital, and inventory.
(2) An individual development account may be established by or on behalf of a client toenable a client to accumulate funds for the following purposes:
(a) postsecondary educational expenses after leaving cash assistance, including tuition,fees, books, supplies, and transportation costs, if paid from the individual development accountdirectly to an educational institution that the parent client is attending as part of an employmentplan;
(b) qualified acquisition costs associated with a first-time home purchase if paid from theindividual development account directly to a person to whom the amount is due;
(c) amounts paid from an individual development account directly to a businesscapitalization account that is established in a federally insured financial institution and usedsolely for qualified business capitalization expenses; or
(d) the purchase of assistive technologies, vehicle modifications, or home improvementsthat will allow a client with a disability to participate in work-related activities.
(3) A client may only deposit earned income and funds received from a not-for-profitorganization into an individual development account.
Amended by Chapter 39, 2009 General Session