§ 3489 — Prohibitions

Delaware § 3489

• Jurisdiction: Delaware
• Title: 14
• Part: Free Public Schools
• Ch. 34: FINANCIAL ASSISTANCE FOR HIGHER EDUCATION
• Subch.: DE529 Education Savings Plan Administered by the Plans Management Board

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(a) No account nor any interest in an account may be assignable or pledged or otherwise used to secure or obtain a loan or other advancement.

(b) No refund of a qualified educational expense payment may be paid by an education institution directly to the designated beneficiary or to the account owner. Any refund of qualified tuition expenses owed by an education institution on account of an overpayment of educational expenses must be refunded to the Plan for credit to the designated beneficiary’s account.

(c) A qualified withdrawal that is used to pay for qualified education expenses must be paid jointly to the designated beneficiary and the education institution or directly to the education institution. A payment of qualified education expenses may not be made directly to the beneficiary.

(d) Total contributions to all accounts established on behalf of a particular beneficiary in excess of those reasonably necessary to meet the designated beneficiary’s qualified education expenses are prohibited.

(e) Except as permitted in 26 U.S.C. § 529 and regulations thereunder, no person shall have the right to direct the investment of any contributions to or earnings from the Plan.

Legislative History

71 Del. Laws, c. 71, § 1 ; 72 Del. Laws, c. 300, § 2 ; 73 Del. Laws, c. 188, § 2 ; 80 Del. Laws, c. 295, § 1 ; 83 Del. Laws, c. 413, § 1