Ch. 89                                          1996 LAWS OF MARYLAND

(1) IS AWARDED A SCHOLARSHIP THAT COVERS BENEFITS PROVIDED
UNDER THE PREPAID TUITION CONTRACT; OR

(2) DIES OR SUFFERS FROM A TOTAL DISABILITY.

(C) (1) A PREPAID TUITION CONTRACT MAY PROVIDE THAT THE
CONTRACT IS TERMINATED WITHOUT ANY REFUND IF:

(I) BENEFITS ARE NOT EXERCISED UNDER THE CONTRACT
WITHIN A TIME SPECIFIED IN THE CONTRACT; AND

(II) THE CONTRACT IS NOT CANCELED.

(2) TIME THAT A QUALIFIED BENEFICIARY SPENDS IN ACTIVE DUTY AS
A MEMBER OF THE UNITED STATES ARMED FORCES SHALL BE ADDED TO THE TIME
PERIOD ALLOWED TO EXERCISE THE BENEFITS UNDER A PREPAID TUITION
CONTRACT BEFORE A TERMINATION UNDER PARAGRAPH (1) OF THIS SUBSECTION.

18-2109.

THE BOARD, FUND, AND PREPAID TUITION CONTRACTS ISSUED UNDER THIS
SUBTITLE ARE NOT SUBJECT TO THE PROVISIONS OF THE INSURANCE ARTICLE.

18-2110.

THE ASSETS AND INCOME OF THE FUND ARE EXEMPT FROM STATE AND LOCAL
TAXATION.
18-2111.

A PERSON MAY NOT ATTACH, EXECUTE, GARNISH, OR OTHERWISE SEIZE ANY
CURRENT OR FUTURE BENEFIT UNDER A PREPAID TUITION CONTRACT OR ANY
ASSET OF THE FUND.
18-2112.

NOTHING IN THIS SUBTITLE NOR IN ANY PREPAID TUITION CONTRACT MAY BE
CONSTRUED AS A PROMISE OR GUARANTEE BY THE BOARD OF ADMISSION TO,
CONTINUED ENROLLMENT AT, OR GRADUATION FROM A PUBLIC INSTITUTION OF
HIGHER EDUCATION IN THE STATE.

18-2113.

THE STATE AND ITS AGENCIES OR ANY LOCAL GOVERNMENT IN THE STATE
MAY AGREE, BY CONTRACT OR OTHERWISE, TO REMIT PAYMENTS ON BEHALF ON
AN EMPLOYEE TOWARD A PREPAID TUITION CONTRACT THROUGH PAYROLL
DEDUCTIONS.

18-2114.

(A) (1) THE LEGISLATIVE AUDITOR SHALL AUDIT THE FUND ANNUALLY.
(2) THE BOARD SHALL PAY FOR THE AUDIT.

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