34 Tex. Admin. Code § 7.102 - General Provisions
(a) Applicability
of this subchapter. This subchapter applies to each savings trust
agreement.
(b) Rights of owners and
beneficiaries. The rights of an owner or a beneficiary under a savings trust
agreement are subject to:
(1) Education Code,
Chapter 54, Subchapter G;
(2) this
subchapter; and
(3) the terms and
conditions of that agreement.
(c) Composition and content of savings trust
agreements.
(1) The savings trust agreement
between the board and an owner consists of:
(A) the application for enrollment that the
owner submitted to the plan manager that has custody of the owner's savings
trust account; and
(B) the master
agreement for the savings plan, except when the agreement irreconcilably
conflicts with Education Code, Chapter 54, Subchapter G; Internal Revenue Code
of 1986, §529, as amended; regulations thereunder; or this
subchapter.
(2) The
savings trust agreement between the board and an owner is governed by:
(A) the terms of the agreement;
(B) this subchapter;
(C) Education Code, Chapter 54, Subchapter G,
and any other applicable law of this state; and
(D) Internal Revenue Code of 1986, §529,
as amended, regulations thereunder, and any other applicable federal
law.
(3) The savings
trust agreement between the board and an owner must contain the information
that is required by Education Code, §
54.707(c)
and §
54.709(d).
(d) Conflicts between Education
Code, Chapter 54, Subchapter G, and the Internal Revenue Code of 1986,
§529, as amended, or this subchapter and the master agreement. To the
extent of irreconcilable conflict, the provisions of Internal Revenue Code of
1986, §529, as amended, and regulations thereunder; Education Code,
Chapter 54, Subchapter G; and this subchapter prevail over the master agreement
for the savings plan. The agreement is at all times subject to this subchapter.
Any amendment to Internal Revenue Code of 1986, §529; Education Code,
Chapter 54, Subchapter G; or this subchapter that would apply to the savings
plan, a savings trust agreement, or a savings trust account will automatically
constitute an amendment to the savings trust agreement.
(e) Disclosures and promotion of the plan.
(1) Every savings trust agreement, deposit
slip, or similar document that is used in connection with a contribution to a
savings trust account must clearly indicate that:
(A) the account is not insured by this state;
and
(B) neither the principal that
is deposited nor the investment return is guaranteed by this state.
(2) The promotional material or
other savings plan information that is distributed to an owner or beneficiary
shall disclose that:
(A) no money that is
invested in the savings plan is insured by this state; and
(B) neither the principal that is deposited
nor the investment return is guaranteed by this state.
(3) The promotional material or other savings
plan information that is provided to the public, an owner, or a beneficiary
must disclose the administrative fees and service charges that are imposed
under Education Code, Chapter 54, Subchapter G.
(4) The promotion of or other form of
disclosure of information about the savings plan to an owner or a beneficiary
must be done in a manner that is consistent with:
(A) Education Code, Chapter 54, Subchapter G;
and
(B) Internal Revenue Code of
1986, §529, as amended.
(5) No plan manager, financial institution,
or person who acts on behalf of either shall make any representation that is
inconsistent with the requirements and limitations of this subchapter, or that
is otherwise misleading with respect to any attribute of the savings plan, a
savings trust agreement, or a savings trust account.
Notes
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