PARRIS N. GLENDENING, Governor                            H.B. 368

(8) A QUALIFIED BENEFICIARY SHALL HAVE THE HIGHEST PRIORITY IN
THE ASSIGNMENT OF HOUSING WITHIN PUBLIC SENIOR HIGHER EDUCATION
INSTITUTION RESIDENCE HALLS.

(9) IN THE EVENT THAT SUFFICIENT HOUSING IS NOT AVAILABLE FOR
ALL QUALIFIED BENEFICIARIES, THE BOARD SHALL GRANT A REFUND TO THE
PURCHASER OF AN ADVANCE PAYMENT CONTRACT OR THE QUALIFIED
BENEFICIARY UNDER THE CONTRACT.

18-2111.

(A) THE BOARD:

(1) SHALL ALLOW THE CONVERSION OF AN ADVANCE PAYMENT
CONTRACT PLAN TO ANOTHER PLAN OR CONVERSION FROM AN ELIGIBLE
DESTITUTION TO ANOTHER ELIGIBLE INSTITUTION; AND

(2) MAY ALLOW THE SUBSTITUTION OF QUALIFIED BENEFICIARIES
UNDER AN ADVANCE PAYMENT CONTRACT.

(B) THE BOARD SHALL ADOPT REGULATIONS GOVERNING CONVERSIONS,
INCLUDING COST ADJUSTMENTS.

18-2112. .

(A)    (1) THE BOARD SHALL ADOPT REGULATIONS GOVERNING REFUNDS
FROM THE PROGRAM.

(2) UNLESS AUTHORIZED UNDER REGULATIONS OF THE BOARD OR
UNDER SUBSECTION (B) OF THIS SECTION, A REFUND MAY NOT EXCEED THE
AMOUNT PAID INTO THE FUND BY THE PURCHASER.

(B)    A REFUND OF TIDE AMOUNT PAID UNDER AN ADVANCE PAYMENT
CONTRACT, MINUS ANY AMOUNT PAID OUT OF THE FUND ON BEHALF OF THE
QUALIFIED BENEFICIARY, SHALL BE MADE WITH INTEREST AT A RATE SET BY THE
BOARD IF THE BENEFICIARY:

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

(2) DIES OR SUFFERS FROM A TOTAL DISABILITY.

(C) (1) AN ADVANCE PAYMENT CONTRACT MAY PROVIDE THAT THE
ADVANCE PAYMENT CONTRACT IS TERMINATED WITHOUT ANY REFUND IF:

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

(II) THE ADVANCE PAYMENT 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 AN ADVANCE PAYMENT
CONTRACT BEFORE A TERMINATION UNDER PARAGRAPH (1) OF THIS SUBSECTION.

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