| (a) An account is subject to a late payment penalty for payments not received within 15 days of the payment due date. (b) If no payments are received within 90 days of the first payment due date under a newly established account, the account is in default and will be cancelled. (c) Failure to make any payment within 30, 60, or 90 days of the due date will result in the plan manager sending out a delinquency notice. A late payment penalty will be assessed in each instance, and the failure to make timely payment will be considered a default. (d) If a default has not been cured within 90 days of the outstanding payment default date, the plan manager will send out a default notice advising the purchaser that the contract will be converted in 30 days if not properly cured by the purchaser. (e) A purchaser may cure the default status of its prepaid tuition contract prior to the expiration of 120 days after the payment default date, subject to payment of all the delinquent amounts and any fees specified in the board's fee schedule. A contract that is not cured within 120 days after default shall be converted from an installment plan to a "Pay-As-You-Go" contract reflecting the number of tuition units paid for at the time of the conversion, less any outstanding fees. Any future purchases under the contract will reflect the prices in existence at the time of purchase. If the purchaser wishes to establish another installment plan at a later date after a contract has been converted, the purchaser must wait until the next enrollment period to do so. (f) Failure to make timely payments for 6 consecutive or non-consecutive months out of a 12 month period may also result in termination of the installment plan and conversion of the contract to a Pay-As-You-Go contract. (g) Any refund in the event of a default shall be limited to the Reduced Refund Value as governed by the provisions related to contract termination in §7.135 of this title (relating to Refunds). |
