As used in this article:
1. The term "financial organization" means an organization authorized
to do business in the state of New York and which: (a) is licensed or
chartered by the department of financial services; (b) is licensed or
chartered by an agency of the federal government; or (c) is subject to
the jurisdiction and regulation of the securities and exchange
commission of the federal government.
2. "Account" or "NY ABLE account" shall mean an individual savings
account established in accordance with the provisions of section 529A of
the Internal Revenue Code.
3. "Account owner" shall mean a person who opens a savings account
pursuant to the provisions of section 529A of the Internal Revenue Code,
as amended, or any regulations promulgated thereunder. The account owner
must also be the designated beneficiary of the account.
4. "Designated beneficiary" shall mean, with respect to an account or
accounts, any individual who is an "eligible individual" as defined
under paragraph (1) of subsection (e) of section 529A of the Internal
Revenue Code of 1986, as amended, or any regulations promulgated
thereunder and whose qualified expenses are expected to be paid from the
account or accounts.
5. "Qualified expenses" shall mean any qualified disability expense
included in paragraph (5) of subsection (e) of section 529A of the
Internal Revenue Code of 1986, as amended, or any regulations
promulgated thereunder.
6. "Nonqualified withdrawal" shall mean a withdrawal from an account
for other than a qualified expense, or a withdrawal made as the result
of the death or disability of the designated beneficiary of an account.
7. "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.
8. "Savings agreement" shall mean an agreement between the comptroller
or a financial organization and the account owner.
9. "Program manager" shall mean a financial organization selected by
the comptroller to act as a depository and manager of the program.