Sec. 54.605. EFFECT OF TERMINATION OF PROGRAM ON CONTRACT. (a) A prepaid tuition contract remains in effect after the program is terminated if, when the program is terminated, the beneficiary:
(1) has been accepted by or is enrolled in an institution of higher education, a private or independent institution of higher education, a career school or college, or a registered apprenticeship program described by Section 54.619(i); or
(2) is projected to graduate from high school not later than the third anniversary of the date the program is terminated.
(b) A prepaid tuition contract terminates when the program is terminated if the contract does not remain in effect under Subsection (a).
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 1181, Sec. 3, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 364, Sec. 2.05, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 817, Sec. 8.20, eff. Sept. 1, 2003.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 599 (S.B. 1094), Sec. 1, eff. September 1, 2021.
Structure Texas Statutes
Subtitle A - Higher Education in General
Subchapter F. Prepaid Higher Education Tuition Program
Section 54.6001. Public Purpose
Section 54.602. Establishment of Board; Function
Section 54.603. Sunset Provision
Section 54.604. Termination or Modification of Program
Section 54.605. Effect of Termination of Program on Contract
Section 54.606. Members of Board; Appointment; Terms of Office
Section 54.607. Duty in Recommending, Making, or Confirming Appointments
Section 54.608. Restrictions on Board Appointment, Membership, and Employment
Section 54.6085. Prepaid Higher Education Tuition Board Ethics Policy
Section 54.609. Removal of Board Member
Section 54.610. Training of Board Members
Section 54.611. Board Officers
Section 54.612. Compensation and Expenses of Appointed Board Members
Section 54.614. Applicability of Open Meetings Law and Administrative Procedure Law
Section 54.615. Executive Director; Staff
Section 54.616. Program and Facility Accessibility
Section 54.617. Public Interest Information and Complaints
Section 54.6175. Use of Technology
Section 54.618. Powers of Board
Section 54.6181. Advisory Committees
Section 54.619. Prepaid Higher Education Tuition Program
Section 54.6195. Application for Enrollment
Section 54.620. Prepaid Tuition Contract
Section 54.622. Types of Plans
Section 54.623. Junior College Plan
Section 54.624. Senior College Plan
Section 54.6245. Graduate and Professional Degree Plans
Section 54.625. Junior-Senior College Plan
Section 54.6251. Private College Plan
Section 54.6252. Contract for Additional Credit Hours
Section 54.626. Contract Payment
Section 54.6261. Deferred Use of Prepaid Credit Hours
Section 54.6262. Application of Unused Credit Hours to Graduate Tuition
Section 54.627. Change of Beneficiary
Section 54.628. Conversion to Another Plan
Section 54.629. Verification Under Oath
Section 54.630. Promise or Guarantee of Admission
Section 54.631. Contract Termination
Section 54.633. Prepaid Higher Education Tuition Scholarships for Students
Section 54.634. Establishment of Trust Fund; College Savings Plan Account
Section 54.636. Investment of Fund Assets
Section 54.637. Use of Fund Assets
Section 54.6385. Exemption From Securities Laws
Section 54.639. Exemption From Creditors' Claims
Section 54.640. Actuarial Soundness of Fund
Section 54.6401. Compliance With Limits on Contributions and Withdrawals
Section 54.641. Statement Regarding Status of Prepaid Tuition Contract