ยง 695-b. Definitions. As used in this article, the following terms
shall have the following meanings:
1. "Account" or "family tuition account" shall mean an individual
savings account established in accordance with the provisions of this
article.
2. "Account owner" shall mean a person who enters into a tuition
savings agreement pursuant to the provisions of this article, including
a person who enters into such an agreement as a fiduciary or agent on
behalf of a trust, estate, partnership, association, company or
corporation. The account owner may also be the designated beneficiary of
the account.
3. "Designated beneficiary" shall mean, with respect to an account or
accounts, the individual designated as the individual whose higher
education expenses are expected to be paid from the account or accounts.
4. "Financial organization" shall mean an organization authorized to
do business in the state of New York and (a) which is an authorized
fiduciary to act as a trustee pursuant to the provisions of an act of
congress entitled "Employee Retirement Income Security Act of 1974" as
such provisions may be amended from time to time, or an insurance
company; and (b)(i) is licensed or chartered by the department of
financial services, (ii) is chartered by an agency of the federal
government, (iii) is subject to the jurisdiction and regulation of the
securities and exchange commission of the federal government, or (iv) is
any other entity otherwise authorized to act in this state as a trustee
pursuant to the provisions of an act of congress entitled "Employee
Retirement Income Security Act of 1974" as such provisions may be
amended from time to time.
5. "Eligible educational institution" shall mean (a) any institution
of higher education defined as an eligible educational institution in
section 529(e)(5) of the Internal Revenue Code of 1986, as amended, or
(b) any apprenticeship program described in section 529(c)(8) of the
Internal Revenue Code of 1986, as amended.
6. "Member of family" shall mean a family member as defined in section
529 of the Internal Revenue Code of 1986, as amended.
7. "Program" shall mean the New York state college choice tuition
savings program established pursuant to this article.
8. "Qualified higher education expenses" shall mean any qualified
higher education expense included in section 529 of the Internal Revenue
Code of 1986, as amended.
9. "Qualified withdrawal" shall mean a withdrawal from an account to
pay the qualified higher education expenses of the designated
beneficiary of the account at an eligible educational institution.
10. "Nonqualified withdrawal" shall mean a withdrawal from an account
but shall not mean:
a. a qualified withdrawal;
b. a withdrawal made as the result of the death or disability of the
designated beneficiary of an account; or
c. a withdrawal made on the account of a scholarship.
11. "Corporation" shall mean the New York state higher education
services corporation.
12. "Comptroller" shall mean the comptroller of the state of New York.
13. "Management contract" shall mean the contract executed by the
comptroller and a financial organization selected to act as a depository
and manager of the program.
14. "Tuition savings agreement" shall mean an agreement between the
comptroller or a financial organization and the account owner.
15. "Program manager" shall mean a financial organization selected by
the comptroller to act as a depository and manager of the program.