Delaware Code Title 14 Sec. 3489 – Prohibitions
(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.
Terms Used In Delaware Code Title 14 Sec. 3489
- Account: means an individual account, a trust account or a savings account established in accordance with this subchapter. See Delaware Code Title 14 Sec. 3485
- Account owner: means the individual, individuals, or the trustee of a trust identified at the time the account is opened as having the right to withdraw funds from the account. See Delaware Code Title 14 Sec. 3485
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Designated beneficiary: means , except as provided in § 3490 of this title, the individual designated at the time the account is opened as having the right to receive a qualified withdrawal for the payment of qualified education expenses or, if such designated beneficiary is replaced in accordance with § 3490 of this title, such replacement. See Delaware Code Title 14 Sec. 3485
- Plan: means the DE529 Education Savings Plan established by this subchapter. See Delaware Code Title 14 Sec. 3485
- Qualified education expenses: means tuition and other permitted expenses as set forth in 26 U. See Delaware Code Title 14 Sec. 3485
- Qualified withdrawal: means a withdrawal from an account to pay the qualified education expenses of the designated beneficiary, but only if the withdrawal is made in accordance with the requirements of the Plan. See Delaware Code Title 14 Sec. 3485
(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.
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;