1996 LAWS OF MARYLAND

(I) THE BOARD MAY CONTRACT WITH AN INVESTMENT ADVISORY OR
MANAGEMENT COMPANY FOR THE INVESTMENT AND MANAGEMENT OF THE FUND
AS LONG AS THE FUND IS ADMINISTERED IN ACCORDANCE WITH THE
COMPREHENSIVE DIVESTMENT PLAN.

(J) THE BOARD:

(1) SHALL PRESERVE, INVEST, AND EXPEND THE ASSETS OF THE FUND
SOLELY FOR THE PURPOSES OF THIS SUBTITLE; AND

(2) MAY NOT LOAN, TRANSFER, OR USE THE ASSETS FOR ANY OTHER
PURPOSE OF THE STATE.

(K) THE FUND IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE.

(L) UNLESS THE BOARD PROVIDES OTHERWISE BY REGULATION, THE
BOARD SHALL USE THE PROCEEDS IN THE FUND IN THE FOLLOWING ORDER:

(1) TO PAY ELIGIBLE INSTITUTIONS IN ACCORDANCE WITH THE
BOARD'S OBLIGATIONS UNDER ADVANCE PAYMENT CONTRACTS;

(2)     TO REFUND MONEY ON THE TERMINATION OF ADVANCE PAYMENT
CONTRACTS; AND

(3)     TO PAY THE OPERATING EXPENSES OF THE BOARD.
18-2107.

(A)    THE BOARD SHALL ESTABLISH A PROGRAM OF PREPAID TUITION
CONTRACTS FOR:

(1) TUITION AT COMMUNITY COLLEGES;

(2)     TUITION AT PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONS;

AND

(3)     DORMITORY FEES AT PUBLIC SENIOR HIGHER EDUCATION
INSTITUTIONS.

(B)     THE COST OF A PREPAID TUITION CONTRACT SHALL BE BASED ON;

(1)     THE AVERAGE CURRENT TUITION COSTS AND DORMITORY FEES AT
THE PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN THE STATE;

(2)     THE NUMBER OF YEARS EXPECTED TO ELAPSE BETWEEN THE
PURCHASE OF A PREPAID TUITION CONTRACT AND THE USE OF THE BENEFITS OF
THE CONTRACT; AND

(3)     THE PROJECTED TUITION COSTS AND DORMITORY FEES AT THE
TIME THAT THE BENEFITS WILL BE EXERCISED.

(C) EACH PREPAID TUITION CONTRACT MADE UNDER THE PROVISIONS OF
THIS SUBTITLE SHALL INCLUDE THE FOLLOWING PROVISIONS:

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