Oklahoma § 70-6005 - Advance tuition payment contracts - Required provisions Termination of rights of beneficiary

§ 70-6005. Advance tuition payment contracts - Required provisions Termination of rights of beneficiary

A. The Trust, on behalf of itself and the state, may contract

with a purchaser for the advance payment of tuition by the purchaser

for a qualified beneficiary to attend any of the institutions of

higher education to which the qualified beneficiary is admitted,

without further fees to the qualified beneficiary. In addition, an

advance tuition payment contract shall set forth in a clear,

understandable manner all of the following:

1. The amount of the payment or payments required from the

purchaser on behalf of the qualified beneficiary;

2. The terms and conditions for making the payment, including,

but not limited to, the date or dates upon which the payment, or

portions of the payment, shall be due;

3. Provisions for late payment charges and for default;

4. The name and age of the qualified beneficiary under the

contract. The purchaser, with the approval of and on conditions

determined by the Trust, may subsequently substitute another person

for the qualified beneficiary originally named;

5. The number of credit hours covered by the contract, but the

credit hours shall not exceed the number of credit hours required

for the granting of a bachelor's degree in the applicable degree

program at any institution of higher education to which the

qualified beneficiary is admitted;

6. The name of the person entitled to terminate the contract,

which, as provided by the contract, may be the purchaser, the

qualified beneficiary, or a person acting on behalf of the purchaser

or qualified beneficiary, or any combination of these persons;

7. The terms and conditions under which the contract may be

terminated and the amount of the refund, if any, to which the person

terminating the contract, or the purchaser or designated qualified

beneficiary if the contract so provides, shall be entitled upon

termination;

8. The assumption of a contractual obligation by the Trust to

the qualified beneficiary on its own behalf and on behalf of the

state to provide for a specified number of credit hours of higher

education, not to exceed the number of credit hours required for the

granting of a bachelor's degree, at any institution of higher

education to which the qualified beneficiary is admitted. The

contract shall require that a named beneficiary who is not an

Oklahoma resident at the time the beneficiary is enrolled in a state

institution of higher education shall pay all applicable nonresident

Oklahoma Statutes - Title 70. Schools

tuition or fees imposed on nonresident students at the university or

college at which the beneficiary is enrolled;

9. The eligibility period;

10. That a qualified beneficiary may attend a community junior

college in this state before entering another institution of higher

education for the purpose of completing a bachelor's degree if the

beneficiary so chooses, and that the contract may be terminated

pursuant to the provisions of Section 9 of this act after completing

the requirements for a degree or certificate at the community junior

college in this state or before entering the other institution of

higher education;

11. All other rights and obligations of the purchaser and the

Trust; and

12. Other terms, conditions, and provisions as the Trust

considers in its sole discretion to be necessary or appropriate.

B. The Trust shall make any arrangements that are necessary or

appropriate with institutions of higher education in order to

fulfill its obligations under advance tuition payment contracts.

Arrangements may include, but need not be limited to, the payment by

the Trust of the then actual in-state tuition cost on behalf of a

qualified beneficiary to the institution of higher education.

C. An advance tuition payment contract may provide that, if

after a number of years specified in the contract the contract has

not been terminated or the qualified beneficiary's rights under the

contract have not been exercised, the Trust, after making a

reasonable effort to locate the purchaser and qualified beneficiary

or the agent of either, shall retain the amounts otherwise payable

and the rights of the qualified beneficiary, the purchaser or the

agent of either shall be considered terminated.

Added by Laws 1988, c. 261, § 6, emerg. eff. June 29, 1988.