| (a) Notwithstanding any of the provisions of this chapter,
the board, the program entity, or a nonprofit scholarship organization:
(1) is not required to name a designated beneficiary
when entering into a prepaid tuition contract or opening a savings
trust account;
(2) may change the designated beneficiary of a prepaid
tuition contract or savings trust account to another beneficiary who
is not a family member of the previous beneficiary;
(3) may purchase an unlimited number of tuition units
for a prepaid tuition contract and may contribute an unlimited amount
of funds to a savings trust account, provided that the board, program
entity, or nonprofit scholarship organization is the purchaser of
the prepaid tuition contract or account owner of the savings trust
account and provided that such contributions or purchases do not result
in any individual beneficiary's aggregate balance exceeding the limit
in §7.103 of this title (relating to Tax Benefits and Securities
Laws Exemptions); and
(4) may enter into a prepaid tuition contract during
the enrollment period established for beneficiaries who are newborn
infants under §7.122(6) of this title (relating to Definitions).
The three-year holding period begins on the date each unit is paid
in full.
(b) Notwithstanding any of the provisions of this chapter,
the board or the program entity:
(1) may designate more than one beneficiary of a prepaid
tuition contract by awarding or allocating a portion of tuition units
to an eligible designated beneficiary, provided that the board or
program entity is the purchaser of the contract; and
(2) is exempt from the $25 administrative fee imposed
under §7.124(j) of this title (relating to Prepaid Tuition Units:
Purchase; Assigned Value; Types; Price).
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