PARRIS N. GLENDENING, Governor

Ch. 111

(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.

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

(1) THE AMOUNT OF EACH PAYMENT AND THE NUMBER OF PAYMENTS
REQUIRED FROM A PURCHASER;

(2) THE TERMS AND CONDITIONS UNDER WHICH PURCHASERS SHALL
REMIT PAYMENTS, INCLUDING THE DATES OF THE PAYMENTS;

(3) PROVISIONS FOR LATE PAYMENT CHARGES AND DEFAULTS;

(4) PENALTIES FOR EARLY WITHDRAWAL FROM THE PROGRAM;

(5) THE AMOUNT AND TERMS OF ANY ADMINISTRATIVE FEES THAT MUST
BE PAID BY THE PURCHASER OR THE BENEFICIARY;

(5) (6) THE NAME AND DATE OF BIRTH OF THE QUALIFIED
BENEFICIARY ON WHOSE BEHALF THE CONTRACT IS MADE;

(6) (7) TERMS AND CONDITIONS FOR A SUBSTITUTION FOR THE
QUALIFIED BENEFICIARY ORIGINALLY NAMED;

(7) (8) TERMS AND CONDITIONS FOR THE TERMINATION OF THE
CONTRACT;

(8) (9) THE TIME PERIOD DURING WHICH THE QUALIFIED
BENEFICIARY MAY CLAIM BENEFITS FROM THE PROGRAM;

(9) (10) THE MAXIMUM NUMBER OF UNDERGRADUATE SEMESTER
HOURS THAT ARE PREPAID UNDER THE CONTRACT; CONTRACT, BASED ON
IN-STATE TUITION AT A PUBLIC INSTITUTION OF HIGHER EDUCATION IN THE
STATE;

(10) (11) ALL OTHER RIGHTS AND OBLIGATIONS OF THE PURCHASER
AND THE PROGRAM; AND

(11) (12) THE FOLLOWING NOTICE SHALL BE PRINTED ON EACH
CONTRACT IN AT LEAST 10-POINT TYPE: THIS CONTRACT IS NOT AN OBLIGATION OF
THE STATE AND NEITHER THE FAITH AND CREDIT NOR TAXING POWER OF THE
STATE IS PLEDGED DIRECTLY OR INDIRECTLY OR CONTINGENTLY, MORALLY OR
OTHERWISE, TO THE PAYMENT OF THIS CONTRACT. THE BOARD CANNOT DIRECTLY
OR INDIRECTLY OR CONTINGENTLY OBLIGATE, MORALLY OR OTHERWISE THE
STATE TO LEVY OR PLEDGE ANY FORM OF TAXATION WHATSOEVER OR TO MAKE
ANY APPROPRIATION FOR THE PAYMENT OF THIS CONTRACT; AND

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