Maryland Code, EDUCATION 18-1903
Terms Used In Maryland Code, EDUCATION 18-1903
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- 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.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(b) The purpose of the Trust is to provide:
(1) A means for payment of the cost of tuition in advance of enrollment at an eligible institution of higher education; and
(2) An assurance to a beneficiary who enrolls at an eligible institution of higher education that the Board shall make every effort to invest the advance payments so that the prepaid contract will cover the average in-State tuition costs at public institutions of higher education in the State at the time that the benefits are exercised.
(c) The Board shall administer the Trust in compliance with Internal Revenue Service standards for qualified State tuition programs.
(d) The funds of the Trust consist of:
(1) Payments received from prepaid contracts made under the provisions of this subtitle;
(2) Bequests, endowments, or funds from any other available private source;
(3) Interest and income earned from the investments of the Trust; and
(4) Federal, State, or local funds, or funds from any other available public source.
(e) Money remaining in the Trust at the end of the fiscal year shall remain in the Trust and may not revert to the General Fund of the State.
(f) Money of the Trust may not be considered money of the State and may not be deposited into the Treasury.
(g) Money of the Trust may not be considered money of the Maryland Senator Edward J. Kasemeyer College Investment Plan and may not be commingled with the Plan.
(h) Money of the Trust may not be considered money of or be commingled with the Maryland Broker-Dealer College Investment Plan.
(i) Money of the Trust may not be considered money of or be commingled with the Maryland ABLE Program.
(j) (1) The debts, contracts, and obligations of the Trust are not the contracts, debts, or obligations of the State and neither the faith and credit nor taxing power of the State is pledged directly or indirectly or contingently, morally or otherwise, to the payment of the debts, contracts, and obligations.
(2) The Board cannot directly or indirectly or contingently obligate, morally or otherwise, the State to levy or pledge any form of taxation whatsoever for the debts and obligations of the Trust or to make any appropriation for the payment of the debts and obligations of the Trust.
(k) Neither the State nor any eligible institution of higher education shall be liable for any losses or shortage of funds in the event that the Maryland Senator Edward J. Kasemeyer Prepaid College Trust is insufficient to meet the tuition requirements of an institution attended by the qualified beneficiary.