(A) The Office of State Treasurer shall make investment trust agreements available to the public, under which account owners or other contributors may make contributions on behalf of beneficiaries. These contributions and investment earnings on these contributions may be used for any qualified higher educational expenses of a designated beneficiary. There is no guarantee by the State that the contributions, together with the investment return on the contributions, if any, will be adequate to pay for qualified education expenses in full.
(B) Each investment trust agreement made pursuant to this chapter must include the following terms and provisions:
(1) the maximum and minimum contributions allowed on behalf of each beneficiary for the payment of qualified higher education expenses at eligible institutions, both as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, so that in no case shall the maximum allowable contribution be less than the amount allowable for the gift tax exclusion under Section 529 of the Internal Revenue Code of 1986, as amended;
(2) provisions for withdrawals, refunds, transfers, and any penalties;
(3) the name, address, and date of birth of the beneficiary on whose behalf the investment trust account is opened;
(4) terms and conditions for a substitution of the beneficiary originally named;
(5) terms and conditions for termination of the account, including any refunds, withdrawals, or transfers, applicable penalties, and the name of the person entitled to terminate the account;
(6) the time Period during which the beneficiary must use benefits from the investment trust account;
(7) all other rights and obligations of the account owner and the SCCIP trust fund; and
(8) any other terms and conditions which the State Treasurer deems necessary or appropriate, including those necessary to conform the investment trust account with the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law or regulations.
HISTORY: 2001 Act No. 72, Section 3(A).
Structure South Carolina Code of Laws
Chapter 2 - South Carolina College Investment Program
Section 59-2-20. Findings and Purpose.
Section 59-2-40. State Treasurer responsible for SCCIP and SCTPP programs.
Section 59-2-50. Powers of State Treasurer.
Section 59-2-60. Investment trust agreements.
Section 59-2-70. South Carolina College Investment Trust Fund.
Section 59-2-80. Tax features.
Section 59-2-85. Contributions through payroll deductions.
Section 59-2-90. Investment of trust funds.
Section 59-2-110. Disclaimer as to admission, continued enrollment, or graduation.
Section 59-2-140. SCCIP trust fund exempt from legal process, unassignable.
Section 59-2-150. State Treasurer, others not responsible for determining specified information.