Guam § 50001 - Definitions.

§ 50001. Definitions.

As used in this Chapter, unless the context otherwise requires:

(a) “Account” or “college account” means an individual savings

account established in accordance with this Chapter.

(b) “Account owner” means the individual who enters into a

tuition savings agreement pursuant to this Chapter and as defined

under the proposed income tax regulations, §§ 1.529-1 to 1.529-6 or

the final regulations relating to § 529 of the Internal Revenue Code of

1986, as amended, whichever is applicable, including any amendments

or supplements thereto.

(c) “Conunissioner” means the Commissioner of Banking and

Insurance appointed under Title 11 G.C.A. § 103102.

(d) “Designated beneficiary” means a designated beneficiary as

defined in §529 of the Internal Revenue Code of 1986, as amended, or

successor legislation. (e) "Eligible educational institution" means an

institution defined as such in § 529 of the Internal Revenue Code of

1986, as amended, or successor legislation.

(f) “financial organization” means an organization authorized to

do business on Guam that is:

(1) Certified as an insurer by the Commissioner; or

(2) Licensed or chartered as a financial institution by the

Commissioner; or

(3) Chartered by an agency of the federal government; or

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(4) Subject to the jurisdiction and regulation of the Securities

and Exchange Commission of the federal government; or

(5) Any other entity otherwise authorized to act on Guam as

a trustee pursuant to the Employee Retirement Income Security

Act of 1974, as may be amended from time to time, or pursuant to

the provisions of the Guam-Based Trust Company Act, Title 11

GCA § 160101, et seq.

(g) “Management contract” means the contract executed by the

Commissioner and a financial organization selected to act as a depository

and manager of the program.

(h) “Member ofthe family” means a family member as defined in § 529

of the Internal Revenue Code of 1986, as amended, or successor legislation.

(i) “Nonqualified withdrawal” means a withdrawal from an account

that is not:

(1) Used for qualified higher education expenses of the designated

beneficiary; or

(2) Made on account of the death or disability of the designated

beneficiary; or

(3) Made on the account of a scholarship (or allowance or

payment described in § 135( d)(l )(B) or (C) of the Internal Revenue

Code of 1986, as amended) received by the designated beneficiary, to

the extent the withdrawal does not exceed the amount of the

scholarship, allowance, or payment.

(j) “Program” means the Guam College Savings Program.

(k) “Program manager” means a financial organization selected by the

Commissioner to act as a depository and manager of the program.

(1) “Qualified higher education expenses” means any qualified higher

education expense as defined by § 529 of the Internal Revenue Code of

1986, as amended, or successor legislation.

(m) “Qualified withdrawal” means withdrawal from an account to pay

the qualified higher education expenses of the designated beneficiary of the

account. (n) “Tuition savings agreement” means an agreement between the

Commissioner or a financial organization and the account owner.