256-5 Program limitations; college account. (a) Nothing in this chapter shall be construed to:

(1) Give any designated beneficiary any rights or legal interest with respect to an account;

(2) Guarantee that a designated beneficiary:

(A) Will be admitted to an institution of higher education; or

(B) Upon admission to an institution of higher education, will be permitted to continue to attend or will receive a degree from the institution;

(3) Create state residency for an individual merely because the individual is a designated beneficiary; or

(4) Guarantee that amounts saved pursuant to the program will be sufficient to cover the qualified higher education expenses of a designated beneficiary.

(b) Nothing in this chapter shall create or be construed to create any obligation of the director of finance, the State, or any agency or instrumentality of the State to guarantee for the benefit of any account owner or designated beneficiary with respect to:

(1) The rate of interest or other return on any account;

(2) The payment of interest or other return on any account; or

(3) The repayment of the principal of any account.

The director of finance shall provide by rule that every tuition savings agreement, contract, application, deposit slip, or other similar document that may be used in connection with a contribution to an account clearly indicate that the account is not insured by the State and neither the principal deposited nor the investment return is guaranteed by the State. [L 1999, c 81, pt of 2; am L 2000, c 90, 4]

 

 

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