Ch. 382

2003 LAWS OF MARYLAND

(b)     The purpose of the [Program] TRUST is to provide:

(1)     A means for payment of the cost of tuition in advance of enrollment at
an eligible institution of higher education; and

(2)     An assurance to a beneficiary who enrolls at an eligible institution of
higher education that the Board shall make every effort to invest the advance
payments so that the prepaid contract will cover the average in-State tuition costs at
public institutions of higher education in the State at the time that the benefits are
exercised.

(c)     THE BOARD SHALL ADMINISTER THE TRUST IN COMPLIANCE WITH
INTERNAL REVENUE SERVICE STANDARDS FOR QUALIFIED STATE TUITION
PROGRAMS.

(D) The funds of the [Program] TRUST consist of:

(1)     Payments received from prepaid contracts made under the provisions
of this subtitle;

(2)     Bequests, endowments, or funds from any other available private
source;

(3)     Interest and income earned from the investments of the [Program]
TRUST; and

(4)     Federal, State, or local funds, or funds from any other available
public source.

[(d)] (E) Money remaining in the [Program] TRUST at the end of the fiscal
year shall remain in the [Program] TRUST and may not revert to the General Fund of
the State.

[(e)] (F) Moneys of the [Program] TRUST may not be considered moneys of
the State and may not be deposited into the Treasury.

[(f)] (G) Moneys of the [Program] TRUST may not be considered moneys of
the Maryland College Investment Plan and may not be commingled with the Plan.

[(g)] (H) (1) The debts, contracts, and obligations of the [Program] TRUST
are not the contracts, debts, or obligations 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 the debts, contracts, and obligations.

(2) The Board cannot directly or indirectly or contingently obligate,
morally or otherwise, the State to levy or pledge any form of taxation whatsoever for
the debts and obligations of the [Program] TRUST or to make any appropriation for
the payment of the debts and obligations of the [Program] TRUST.

[(h)] (I) Neither the State nor any eligible institution of higher education
shall be liable for any losses or shortage of funds in the event that the Maryland
Prepaid College Trust is insufficient to meet the tuition requirements of an
institution attended by the qualified beneficiary.

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