Texas Education Code

§ 54.772 — TAX EXEMPT STATUS REQUIREMENTS

ED § 54.772Title 3. HIGHER EDUCATION · Part A. HIGHER EDUCATION IN GENERAL · Ch. 54. TUITION AND FEES · Art. H. PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II

Statute text

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(a)This section is intended to meet the requirements of Section 529, Internal Revenue Code of 1986.

(b)A payment of an amount due to the fund for a prepaid tuition contract must be made in cash or cash equivalent. A person may not make a payment to the fund in excess of the amounts required to be paid under a prepaid tuition contract.

(c)The board shall maintain a separate accounting for each beneficiary.

(d)The purchaser under a prepaid tuition contract and the beneficiary under the contract may not:

(1)control or direct the investment of payments under the contract or any earnings of the fund; or

(2)use any interest in the contract as security for a loan or other obligation.

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Legislative history

Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.