1. The Board may enter into a prepaid tuition contract with a purchaser.
2. The Board shall create a prepaid tuition contract in accordance with the provisions of this section.
3. The prepaid tuition contract must include, without limitation:
(a) The terms and conditions under which the purchaser shall remit payment, including, without limitation:
(1) The amount and number of payments that are required from the purchaser on behalf of the qualified beneficiary;
(2) The date upon which each payment is due; and
(3) A provision for a reasonable penalty for a delinquent payment or default.
(b) The name and date of birth of the qualified beneficiary on whose behalf the prepaid tuition contract is drawn.
(c) The terms and conditions under which another person may be substituted as the qualified beneficiary.
(d) The terms and conditions under which the purchaser, or another person designated by the purchaser, may terminate the prepaid tuition contract, receive a refund of money that he or she has paid into the Trust Fund or withdraw money that he or she has paid into the Trust Fund, including, without limitation, a provision allowing the Board to impose a fee that amounts to more than a de minimis penalty.
(e) A provision that the Board shall, after making a reasonable effort to contact the purchaser, report any money that has been deposited under a prepaid tuition contract that has not been terminated and has not been used within a specified period to the State Treasurer for proper disposition.
(f) The number of semesters for which the purchaser is contracting.
(g) A provision that money paid into the Trust Fund under a prepaid tuition contract may be applied toward tuition for an undergraduate degree at:
(1) A university, state college or community college that is a member of the System;
(2) An accredited college or university in this State that is not a member of the System; or
(3) An accredited community college, college or university in another state.
Payments authorized pursuant to subparagraph (2) or (3) must not exceed the projected highest payment for tuition for the current academic year at a university that is a member of the System.
(h) A provision that any money under a prepaid tuition contract that is remaining after a qualified beneficiary has graduated with an undergraduate degree may be applied toward tuition for graduate-level studies at:
(1) A university, state college or community college that is a member of the System;
(2) An accredited college or university in this State that is not a member of the System; or
(3) An accredited community college, college or university in another state.
Payments authorized pursuant to this paragraph may not exceed the total amount payable under the prepaid tuition contract of the qualified beneficiary.
(i) Any other term or condition that the Board considers necessary or proper.
(Added to NRS by 1997, 3484; A 2001, 2166; 2005, 364; 2017, 4146)