PARRIS N. GLENDENING, Governor Ch. 110

(3) RECEIVE ANY CONSIDERATION FOR THE FIDUCIARY'S OWN
ACCOUNT FROM A PERSON DEALING WITH THE PROGRAM IN CONNECTION WITH A
TRANSACTION INVOLVING THE ASSETS OF THE PROGRAM: OR

(4) BECOME AN ENDORSER OR SURETY OR, IN ANY MANNER. AN
OBLIGOR, FOR MONEY LENT TO OR BORROWED FROM THE BOARD.

18-1908.

(A) THE BOARD SHALL PURCHASE A BOND FOR EACH FIDUCIARY IN
ACCORDANCE WITH ARTICLE 78A, §§ 46 THROUGH 50 OF THE CODE.

(B) UNLESS A FIDUCIARY IS BONDED THE FIDUCIARY MAY NOT EXERCISE
CUSTODY OR CONTROL OF ANY ASSETS OF THE PROGRAM.

(C) A FIDUCIARY MAY NOT ALLOW ANOTHER FIDUCIARY TO ACT IN VIOLATION
OF THIS SECTION

18-1909.

(A) THE BOARD SHALL ESTABLISH A PROGRAM OF PREPAID TUITION HIGHER
EDUCATION INVESTMENT CONTRACTS TO BE KNOWN AS:

(1) THE COMMUNITY COLLEGE PLAN;

(2) THE UNIVERSITY PLAN; AND

(3) THE TWO PLUS TWO PLAN.

(B) (1) FOR THE PURPOSE OF ENTERING INTO A HIGHER EDUCATION
INVESTMENT CONTRACT, EITHER THE PURCHASER OR THE QUALIFIED BENEFICIARY
MUST BE A RESIDENT OF MARYLAND AT THE TIME THAT THE PURCHASER ENTERS INTO
THE CONTRACT.

(2) FOR THE PURPOSES OF DETERMINING RESIDENCY FOR THE PURCHASE
OF A HIGHER EDUCATION INVESTMENT CONTRACT. "RESIDENT" HAS THE MEANING
STATED IN § 10-101 (H) OF THE TAX- GENERAL ARTICLE.

(B) (C) THE COST OF A PREPAID TUITION HIGHER EDUCATION
INVESTMENT CONTRACT SHALL BE BASED ON:

(1) THE AVERAGE CURRENT IN-STATE TUITION COSTS AT THE TIME
THE CONTRACT IS PURCHASED AT PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN
THE STATE;

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

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

- 1619 -