Ch. 111 1997 LAWS OF MARYLAND

(1) USE THE ASSETS OF THE PROGRAM FOR THE FIDUCIARY'S OWN
INTEREST OR ACCOUNT;

(2) ACT IN A TRANSACTION INVOLVING THE PROGRAM ON BEHALF OF
A PERSON, OR REPRESENT A PERSON. Br THE INTERESTS OF THE PERSON ARE
ADVERSE TO THE INTERESTS OF THE PROGRAM OR THE INTERESTS OF
PARTICIPANTS;

(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 5§ 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; AND

(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;

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