Maine Revised Statutes Title 20-A Sec. 11475 – Participation agreement
Current as of: 2023 | Check for updates
|
Other versions
The authority may enter into a participation agreement with a participant on behalf of a beneficiary pursuant to the following terms and conditions. [PL 1997, c. 732, §4 (NEW).]
1. Periodic payments. A participation agreement may require or permit a participant to invest a specific amount of money in the program fund for a specific period of time for the benefit of a specific beneficiary. Periodic deposits may be made through a payroll deduction plan or an automatic deposit plan or through assignment of state tax refunds. A participation agreement establishing such a periodic deposit plan may include provisions to adjust scheduled deposits on the basis of change in a participant’s economic circumstances or a beneficiary’s educational plans and may provide for penalties on a participant’s failure to make deposits as scheduled. A participation agreement establishing such a plan must provide for the limitation of scheduled deposits by the authority as necessary to ensure that a participant’s account does not exceed the amount necessary to pay the beneficiary’s projected higher education expenses.
[PL 1997, c. 732, §4 (NEW).]
Terms Used In Maine Revised Statutes Title 20-A Sec. 11475
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Authority: means the Finance Authority of Maine, which serves as administrator of the Maine Education Savings Program. See Maine Revised Statutes Title 20-A Sec. 11471
- 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
- Beneficiary: means any person designated by a participation agreement to benefit from payments for higher education expenses. See Maine Revised Statutes Title 20-A Sec. 11471
- Higher education expenses: means the certified expenses for attendance at an institution of higher education as those expenses are defined by rule of the authority consistent with applicable provisions of the federal Internal Revenue Code of 1986 and its regulations addressing qualified tuition programs. See Maine Revised Statutes Title 20-A Sec. 11471
- Institution of higher education: means an institution of higher education that meets the requirements established by rule of the authority consistent with applicable provisions of the federal Internal Revenue Code of 1986 and its regulations addressing qualified tuition programs. See Maine Revised Statutes Title 20-A Sec. 11471
- Participant: means any person who has entered into a participation agreement pursuant to this chapter. See Maine Revised Statutes Title 20-A Sec. 11471
- Participation agreement: means an agreement between a participant and the authority providing for the establishment by the participant of one or more accounts within the program fund and for the administration of those accounts for the benefit of the participant and of one or more beneficiaries. See Maine Revised Statutes Title 20-A Sec. 11471
- Secondary school: means that portion of a school that provides instruction in any combination of grades 9 through 12. See Maine Revised Statutes Title 20-A Sec. 1
2. Lump-sum payments. A participation agreement may permit a participant to make one or more lump-sum deposits to an account for the benefit of a specific beneficiary.
[PL 2015, c. 267, Pt. DD, §1 (AMD); PL 2015, c. 267, Pt. DD, §34 (AFF).]
3. Designation of beneficiaries. Except for accounts opened by a state or local governmental entity or charitable organization, an application or participation agreement must designate the name and date of birth of the beneficiary.
[PL 2001, c. 380, §2 (AMD).]
4. Change of beneficiary. A beneficiary may be changed as permitted by rule of the authority upon written request of the participant, provided that the substitute beneficiary is eligible.
[PL 1997, c. 732, §4 (NEW).]
5. Amendment. A participation agreement may be freely amended throughout its term to enable a participant to increase or decrease the level of participation, change the designation of a beneficiary and carry out similar matters.
[PL 1997, c. 732, §4 (NEW).]
6. Enrollment fee. The authority may not charge an enrollment fee for participation in the program.
[PL 1997, c. 732, §4 (NEW).]
7. Cancellation. A participation agreement must provide that the participation agreement may be canceled upon the terms and conditions of the agreement and upon payment of the fees, expenses and penalties set forth in rules adopted by the authority.
[PL 1997, c. 732, §4 (NEW).]
8. Separate accounts. A participation agreement must require that the authority maintain each participant’s account separately, subject to commingling for investment purposes, and report the status of each participant’s account to the participant on a periodic basis, as established by rule of the authority.
[PL 1997, c. 732, §4 (NEW).]
9. Rights and obligations. A participation agreement must include any other rights and obligations of the participant, the beneficiary and the authority.
[PL 1997, c. 732, §4 (NEW).]
10. Terms and conditions. A participation agreement may include other terms and conditions the authority determines necessary, including a limitation on liability of the authority to the extent funds are disbursed in good faith.
[PL 1997, c. 732, §4 (NEW).]
11. No guaranty of admission. The execution of a participation agreement by the authority does not guarantee in any way that higher education expenses will be equal to projections and estimates provided by the authority or that the beneficiary named in any participation agreement will:
A. Be admitted to any elementary or secondary school, apprenticeship program or institution of higher education; [PL 2021, c. 17, §4 (AMD).]
B. Be allowed to continue attendance at any elementary or secondary school, apprenticeship program or institution of higher education following admission; or [PL 2021, c. 17, §4 (AMD).]
C. Graduate from any elementary or secondary school, apprenticeship program or institution of higher education. [PL 2021, c. 17, §4 (AMD).]
[PL 2021, c. 17, §4 (AMD).]
SECTION HISTORY
PL 1997, c. 732, §4 (NEW). PL 2001, c. 380, §2 (AMD). PL 2015, c. 267, Pt. DD, §1 (AMD). PL 2015, c. 267, Pt. DD, §34 (AFF). PL 2021, c. 17, §4 (AMD).