P ARRIS N. GLENDENING, Governor

Ch. 110

COLLEGE PLAN OR A TWO PLUS TWO PLAN; OR FROM A TWO PLUS TWO PLAN TO A
COMMUNITY COLLEGE PLAN OR A UNIVERSITY PLAN.

18-1908. 18-1910.

(A) (1) THE BOARD SHALL ISSUE REFUNDS AS SPECIFIED IN THIS SECTION.

(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 PROGRAM BY THE PURCHASER.

(B) A REFUND EQUAL TO THE SAME BENEFITS AS PROVIDED BY THE
CONTRACT, MINUS ANY AMOUNT PAID OUT OF THE FUNDS OF THE PROGRAM ON
BEHALF OF THE QUALIFIED BENEFICIARY AND FOR REASONABLE ADMINISTRATIVE
CHARGES, SHALL BE MADE IF THE BENEFICIARY:

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

(2) DIES OR SUFFERS FROM A DISABILITY WHICH PREVENTS THE
BENEFICIARY FROM ATTENDING A PUBLIC AN INSTITUTION OF HIGHER EDUCATION
WITHIN THE TIME ALLOWED BY THIS SUBTITLE; OR

(3) ATTENDS AN INSTITUTION OF HIGHER EDUCATION NOT IN THE
STATE OF MARYLAND.

(C) (1) A DISCOUNTED REFUND OF THE CONTRIBUTIONS MADE TO THE
PROGRAM, AS DETERMINED BY THE BOARD, SHALL BE MADE IF:

(I) THE BENEFICIARY DOES NOT ATTEND A PUBLIC AN
INSTITUTION OF HIGHER EDUCATION;

(II) BENEFITS ARE NOT EXERCISED UNDER THE CONTRACT
WITHIN A TIME SPECIFIED IN THE CONTRACT; OR

(III) THE CONTRACT IS CANCELED BY THE PURCHASER.

(2) THE 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 HIGHER EDUCATION INVESTMENT CONTRACT BEFORE A TERMINATION
UNDER PARAGRAPH (1) OF THIS SUBSECTION.

18-1909. 18-1911.

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

18-1910. 18-1911

THE ASSETS AND INCOME OF THE PROGRAM ARE EXEMPT FROM STATE AND
LOCAL TAXATION.

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