A. At a minimum, the Trust shall offer advance tuition payment contracts of the two types set forth in paragraphs 1 and 2 of this subsection to be known as Plan A and Plan B, respectively.
1. Under Plan A:
a.a payment or series of payments shall be required from the purchaser on behalf of a qualified beneficiary,
b.if an advance tuition payment contract is terminated before a qualified beneficiary earns a high school diploma or reaches the age of majority, or pursuant to Section 9 of this act, the Trust shall refund the face amount of the payment or payments in accordance with the terms of the contract, less any administrative fee specified in the contract, but shall not refund any investment income attributable to the payments,
c.except as provided in subparagraph d of this paragraph, the Trust shall provide for the qualified beneficiary to attend an institution of higher education which the qualified beneficiary may attend for the number of credit hours required by the institution for the awarding of a bachelor's degree, without further tuition cost to the qualified beneficiary, except as provided in Section 6 of this act for a qualified beneficiary who is required to pay nonresident tuition rates,
d.as an alternative to subparagraph c of this paragraph, the Trust shall provide for the qualified beneficiary to attend an institution of higher education which the qualified beneficiary may attend for a fixed number of credit hours, as permitted by the Trust, less than the total number of credit hours required by the institution for the awarding of a bachelor's degree, without further tuition cost to the qualified beneficiary for that fixed number of credit hours, except as provided in Section 6 of this act for a qualified beneficiary who is required to pay nonresident tuition rates.
2. Under Plan B:
a.a payment or series of payments shall be required on behalf of a qualified beneficiary,
b.if an advance tuition payment contract is terminated before a qualified beneficiary earns a high school diploma or reaches the age of majority, or pursuant to Section 9 of this act, the Trust shall refund the face amount of the payment or payments in accordance with the terms of the contract, less any administrative fee specified in the contract, together with all or a specified portion of accrued investment income attributable to the payment or payments as may be agreed to in the contract,
c.except as provided in subparagraph d of this paragraph, the Trust shall provide for the qualified beneficiary to attend an institution of higher education which the qualified beneficiary may attend for the number of credit hours required by the institution for the awarding of a bachelor's degree, without further tuition cost to the qualified beneficiary, except as provided in Section 6 of this act for a qualified beneficiary who is required to pay nonresident tuition rates, and
d.as an alternative to subparagraph c of this paragraph, the Trust shall provide for the qualified beneficiary to attend an institution of higher education which the qualified beneficiary may attend for a fixed number of credit hours, as permitted by the Trust, less than the total number of credit hours required by the institution for the awarding of a bachelor's degree, without further tuition cost to the qualified beneficiary for that fixed number of credit hours, except as provided in Section 6 of this act for a qualified beneficiary who is required to pay nonresident tuition rates.
B. Contracts required to be offered by this section may require that payment or payments from a purchaser, on behalf of a qualified beneficiary who may attend a state institution of higher education in less than four (4) years after the date the contract is entered into by the purchaser, be based upon attendance at a certain institution of higher education or at that institution of higher education with the highest prevailing tuition cost for the number of credit hours covered by the contract.
Added by Laws 1988, c. 261, § 7, emerg. eff. June 29, 1988.