This text of Tennessee § 49-7-824 (Effect of termination of plan on contract) is published on Counsel Stack Legal Research, covering Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)A tuition contract terminates when the plan is terminated if the contract does not remain in effect under subsection (b). In that event, the purchaser must make a written request to the board to roll the tuition account over to another qualified tuition program established under § 529 of the Internal Revenue Code ( 26 U.S.C. § 529 ). If the purchaser does not make the request by the final plan termination date, a refund shall be made to the person designated in the contract to receive the refund. The board shall determine the amount payable pursuant to a rollover request and the amount of any refund upon termination of the plan. Any rollover under this section shall be administered in accordance with the applicable rollover provisions of the Internal Revenue Code. Free access — add to your briefcase to read the full text and ask questions with AI
(a) A tuition contract terminates when the plan is terminated if the contract does not remain in effect under subsection (b). In that event, the purchaser must make a written request to the board to roll the tuition account over to another qualified tuition program established under § 529 of the Internal Revenue Code ( 26 U.S.C. § 529 ). If the purchaser does not make the request by the final plan termination date, a refund shall be made to the person designated in the contract to receive the refund. The board shall determine the amount payable pursuant to a rollover request and the amount of any refund upon termination of the plan. Any rollover under this section shall be administered in accordance with the applicable rollover provisions of the Internal Revenue Code. (b) Unless otherwise provided by the board, an educational services plan tuition contract remains in effect after the plan is terminated if, when the plan is terminated, the beneficiary: (1) Has been accepted by or is enrolled in an institution of higher education; or (2) Is projected to graduate from high school no later than the third anniversary of the date the plan is terminated. (c) After all obligations of this section and the costs of administering the plan are satisfied, the state treasurer may transfer all or a portion of any assets to the board of trustees for the college savings trust fund program to be used for the administration and marketing of the educational investment plan. Any assets remaining after the transfer must be transferred to the general fund. (d) Notwithstanding any law to the contrary, an educational services plan tuition contract shall not remain or otherwise be in effect after December 31, 2021, regardless of whether the requirements of subsection (b) are met with respect to any particular contract. The state shall provide educational services plan purchasers and beneficiaries with at least sixty (60) days written notice of the termination of the educational services plan prior to November 1, 2021. Notice must be provided using the contact information on file with the plan and indicate that the purchaser may request use of any or all tuition units associated with the purchaser's educational plan tuition contract, request a refund, or request a rollover on or before November 1, 2021. Any rollover requested pursuant to this subsection (d) must be administered in accordance with applicable federal and state laws, rules, and regulations. If the purchaser does not request use of all of the tuition units associated with the purchaser's educational services plan tuition contract, request a refund, or request a rollover on or before November 1, 2021, then a refund must be made to the person designated in the contract to receive the refund in accordance with applicable federal and state laws, rules, and regulations; provided, however, that the amount of the refund must be calculated in accordance with the board's rules for refunds following the death or permanent disability of a beneficiary. The educational services plan shall not reimburse tuition units after December 31, 2021.