California Education Code

§ 69986

EDC § 69986 Effective Jan 1, 2020Div. 5 · Title 3 · Part 42 · Ch. 2 · Art. 19

Statute text

For all purposes of California law, all of the following apply:

(a)The participant shall retain ownership of all contributions made under any participation agreement up to the date of utilization for payment of higher education costs for the beneficiary, and all interest derived from the investment of the payments made by the participant shall be deemed to be held in Scholarshare trust for the benefit of the beneficiary. Neither the contributions, nor any interest derived therefrom, may be pledged as collateral for any loan.

(b)If the participation agreement is canceled prior to payment of higher education expenses for the beneficiary, the participant shall retain ownership of all contributions made under the participation agreement and reversionary right to receive interest on all the contributions at the rate of interest at which the contributions were invested.

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Legislative history

Amended by Stats. 2019, Ch. 17, Sec. 2. (AB 853) Effective January 1, 2020.