Oklahoma § 56-254 - Definitions

§ 56-254. Definitions

As used in this act:

1. "Department" means the Department of Human Services;

2. "Eligible educational institution" means the following:

a.

an institution described in 20 U.S.C., Section

1088(a)(1) or 1141(a), as such sections are in effect

on November 1, 1998, and

Oklahoma Statutes - Title 56. Poor Persons

b.

an area vocational education school, as defined in 20

U.S.C., Section 2471(4), subparagraph (C) or (D), as

such section is in effect on November 1, 1998;

3. "Federal poverty level" means the poverty income guidelines

published for a calendar year by the United States Department of

Health and Human Services;

4. "Fiduciary organization" means the organization that will

serve as an intermediary between an individual account holder and a

financial institution holding account funds. Fiduciary

organizations may include:

a.

not-for-profit organizations described in Section

501(c)(3) of the Internal Revenue Code of 1986, 26

U.S.C., Section 501(c)(3),

b.

state or local government agencies submitting an

application jointly with another entity described in

this paragraph,

c.

community development financial institutions as

defined pursuant to federal law,

d.

for-profit financial institutions and community

development corporations,

e.

credit unions, or

f.

partnerships involving any of the above;

5. "Financial institution" means an organization authorized to

do business under state or federal laws relating to financial

institutions, and includes but is not limited to a bank, trust

company, savings bank, building and loan association, savings and

loan company or association, or credit union;

6. "Individual development account" or "IDA" means an account

created pursuant to this act exclusively for the purpose of paying

the expenses of an eligible individual or family for the purposes

set forth in Section 7 of this act;

7. "Operating costs" includes, but is not limited to,

administrative costs and costs of training IDA participants in

economic and financial literacy and IDA uses;

8. "Postsecondary educational expenses" means:

a.

tuition and fees required for the enrollment or

attendance of an IDA account holder or immediate

family member thereof who is a student at an eligible

educational institution, and

b.

fees, books, supplies, and equipment required for

courses of instruction for an IDA account holder or

immediate family member thereof who is a student at an

eligible educational institution;

9. "Qualified acquisition costs" means the costs of acquiring,

constructing, or reconstructing a residence to be occupied by an IDA

account holder or an immediate family member thereof, including, but

Oklahoma Statutes - Title 56. Poor Persons

not limited to, any usual or reasonable settlement, financing, or

other closing costs;

10. "Qualified business" means any business that does not

contravene any law or public policy;

11. "Qualified business capitalization expenses" means

qualified expenditures for the capitalization of a qualified

business pursuant to a qualified plan;

12. "Qualified expenditures" means expenditures included in a

qualified plan, including but not limited to capital, plant,

equipment, working capital, and inventory expenses;

13. "Qualified plan" means a plan for the operation of a

business by an IDA account holder or an immediate family member

thereof which:

a.

is approved by a financial institution, or by a

nonprofit microenterprise program having demonstrated

business expertise,

b.

includes a description of services or goods to be

sold, a marketing plan, and projected financial

statements,

c.

may require the eligible individual to obtain the

assistance of an experienced entrepreneurial advisor,

and

d.

is approved by the Department of Human Services; and

14. "Qualified principal residence" means a principal residence

within the meaning of Section 1034 of the Internal Revenue Code of

1986, 26 U.S.C., Section 1034, of an IDA account holder or an

immediate family member thereof, the qualified acquisition costs of

which do not exceed the average area purchase price applicable to

such residence, determined in accordance with paragraphs (2) and (3)

of Section 143(e) of the Internal Revenue Code, 26 U.S.C., Section

143(e)(2) and (3).

Added by Laws 1998, c. 429, § 4, eff. Nov. 1, 1998.