| (a) A match account is owned by the board or program
entity until the funds or tuition units are distributed to an eligible
educational institution.
(b) Funds or tuition units that are awarded or allocated
to a match account, including any net earnings or losses related to
that account if applicable, are forfeited and revert to the board
or program entity on the occurrence of any of the following:
(1) the 10th anniversary of the date the beneficiary
is projected to graduate from high school, except that time spent
by the beneficiary as an active duty member of the United States armed
services tolls this period;
(2) a change of beneficiary by the participant;
(3) the closing of participant's savings trust account
or prepaid tuition contract resulting from a nonqualified withdrawal;
(4) a nonqualified withdrawal from participant's prepaid
tuition contract that results in the sum of the participant's tuition
unit balance plus all prior tuition units redeemed from participant's
contract being less than the amount that had been matched;
(5) a nonqualified withdrawal from participant's savings
trust account that results in the sum of the participant's savings
account balance plus all prior qualified distributions from participant's
savings trust account being less than the match account balance as
adjusted for earnings;
(6) the successful completion by the beneficiary of
an associate or bachelor's degree program;
(7) transfer of funds from the participant's account
to another qualified tuition program of any state that meets the requirements
of Internal Revenue Code of 1986, §529;
(8) fraud or misrepresentation by the participant;
(9) the death or permanent disability of the beneficiary
(unable to attend eligible educational institution); or
(10) any other event the board or program entity determines
would be inconsistent with the program's purposes.
(c) A participant or beneficiary whose match account
is forfeited after the completion of an associate degree and who subsequently
enrolls in a bachelor's degree program, may request in writing that
the board not forfeit the match account and must provide evidence
in a form acceptable to the board.
(d) If a participant makes a misrepresentation in an
application for a savings trust account or prepaid tuition contract,
or in a match account application, the match account associated with
the misrepresentation is forfeited. Misrepresentations by participants
may be reported to the Comptroller's Office of Criminal Investigation
and the Attorney General's Office for prosecution and to recover any
distributions.
(e) Unless otherwise provided by this subchapter, use
of a match account that is linked to a savings trust agreement is
governed by the applicable Plan Description and Savings Trust Agreement.
Unless otherwise provided by this subchapter, use of a match account
that is linked to a prepaid tuition contract is governed by the applicable
Plan Description and Master Agreement.
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