Arizona Laws 15-1878. Limits of article
A. This article does not:
Terms Used In Arizona Laws 15-1878
- Account: means an individual trust account in the fund that is established as prescribed in this article. See Arizona Laws 15-1871
- Account owner: means the person who enters into a tuition savings agreement pursuant to this article, who is an account owner within the meaning of section 529 of the internal revenue code and who is designated at the time an account is opened as having the right to withdraw monies from the account before the account is disbursed to or for the benefit of the designated beneficiary. See Arizona Laws 15-1871
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Designated beneficiary: means a person who qualifies as a designated beneficiary under section 529 of the internal revenue code and, except as provided in section 15-1875, subsections P and Q, with respect to an account, who is designated at the time the account is opened as the person whose qualified higher education expenses are expected to be paid from the account or, if this designated beneficiary is replaced in accordance with section 15-1875, subsections D, E and F, the replacement beneficiary. See Arizona Laws 15-1871
- Eligible educational institution: means an institution of higher education that qualifies under section 529 of the internal revenue code as an eligible educational institution. See Arizona Laws 15-1871
- enrollment: means that a pupil is currently registered in the school district. See Arizona Laws 15-901
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means an individual, an individual's legal representative or any other legal entity authorized to establish a savings account under section 529 of the internal revenue code and the corresponding regulations. See Arizona Laws 15-1871
- Plan: means AZ529, Arizona's education savings plan that is established under this article and that constitutes a qualified tuition program as defined in section 529 of the internal revenue code. See Arizona Laws 15-1871
- Treasurer: means the state treasurer. See Arizona Laws 15-1871
1. Give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner.
2. Guarantee that a designated beneficiary will be admitted to an eligible educational institution or be allowed to continue enrollment at or graduate from an eligible educational institution located in this state after admission.
3. Establish state residency for a person merely because the person is a designated beneficiary.
4. Guarantee that amounts saved pursuant to the plan will be sufficient to cover the qualified higher education expenses of a designated beneficiary.
B. This article does not establish any obligation of this state or any agency or instrumentality of this state to guarantee for the benefit of any account owner, contributor to an account or designated beneficiary any of the following:
1. The return of any amounts contributed to an account.
2. The rate of interest or other return on any account.
3. The payment of interest or other return on any account.
4. Tuition rates or the cost of related higher education expenditures.
C. Under rules adopted by the treasurer, every contract, application, deposit slip or other similar document that may be used in connection with a contribution to an account shall clearly indicate that the account is not insured by this state and that neither the principal deposited nor the investment return is guaranteed by this state.